Last fall, a devastating hurricane hit the Wilmington, North Carolina region. The destruction caused by the hurricane meant many residents had to find a place to store their belongings, causing a sudden need for a lot of self-storage supply in an area where demand exceeds supply. Over the last years, construction of new supply has been focused on primary metro areas. Wilmington has been experiencing a self-storage construction boom in recent years, with over 45 facilities currently operating in the immediate area.
Here, we analyze the rates to understand how the lack of supply in Wilmington has impacted rates compared to the other primary metro areas in North Carolina. Below is a breakdown of rates for 5×5 standard (non climate controlled) units. This analysis shows the average monthly rate over 24 months, statewide, for Wilmington and the top metro areas in North Carolina.
Not surprisingly, the average rates for North Carolina as a state are lower than the the top MSAs although rates have trended downward consistently across the state and all MSAs with the exception of the Wilmington region. The trend in decreased rates across the state could be attributed to the growing supply of new facilities. In the Wilmington region rates have increased dramatically in recent months, showing the impact the lack of supply, especially after the devastation of the recent hurricane, has had in the region.
To analyze any of these markets more closely, understand market trends and rate volatility, visit www.StorTrack.com