While self-storage rental rates in New York state continue to trend upward, prices in New York City (NYC) dropped 9.8 percent from 2016 to 2017. The average monthly rental rate in NYC fell to $107.91 last year after peaking at $119.71 in 2016, according to SpareFoot, an online marketplace for self-storage consumers. By comparison, monthly rates statewide grew 2.2 percent during the same period, continuing a three-year trend in which average prices grew 4.6 percent since 2014, increasing from 99.03 in 2014 to $103.59 last year.

The dip in NYC rates is likely attributable to increased competition from new development, the source reported. Rates could be affected in the near future from a lack of development now that the city has restricted self-storage from being built within its 20 industrial business zones without a special-use permit. The measure creates a two-year application process, which includes a uniform land-use review procedure. Special permits will cost about $2,000.

In New York’s biggest markets, Buffalo had the steepest two-year rate increase, jumping nearly 35 percent, from $70.64 in 2015 to $95.29 in 2017. Yonkers grew 15.5 percent during the same period, though its average rate dipped nearly 5 percent to $101.90 last year after hitting $107.07 in 2016. Syracuse also showed a year-over-year decline, continuing a four-year dip in which rental rates have fallen 30 percent from $94.19 in 2014 to $65.89 in 2017.

The most popular unit size in New York is a 5-by-10, representing 33 percent of all rentals booked, according to the source.

Headquartered in Austin, Texas, SpareFoot helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 12,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands such as PODS, SelfStorage.com and Penske Truck Rental.

Sources:
SpareFoot, New York Self-Storage Facts & Figures
SpareFoot Storage Beat, NYC Storage Unit Rents Dropped Almost 10 Percent Last Year