Extra Space Storage Reports Middling Results as Self-Storage Market Gets More Difficult

No-moat-rated Extra Space Storage reported middling results in the third quarter, as we see increasing signs of growth moderation in the self-storage market in the upcoming years. The self-storage sector has experienced very strong growth in the last two years because of several factors including pandemic-related disruptions, work-from-home dynamic, strong economic recovery, and a vibrant housing market. This had resulted in historically high occupancy rates and robust rental growth for the sector but a slowing economy and additional supply to the market will result in substantial growth moderation in the upcoming years.