Techniques for rebalancing storage between subspaces

Techniques for improving storage efficiency of a data storage system are provided. The techniques include (a) performing a testing operation to evaluate whether a test condition is satisfied for a filesystem having a plurality of subspaces, each subspace being provisioned with a respective amount of storage, each subspace of the filesystem being dedicated to storing different respective types of filesystem content, wherein the test condition indicates that a first subspace has available space in excess of a threshold percentage, (b) in response to determining that the test condition is satisfied for the filesystem, performing a reduction operation on the first subspace to remove a portion of storage provisioned to that subspace while retaining the removed portion for use by the filesystem, and (c) upon a second subspace reaching a fullness threshold, provisioning the removed portion to the second subspace and storing content of the respective type of the second subspace thereon.