H1 2025 National Self-Storage Report

The U.S. self-storage sector in mid-2025 finds itself in a tentative but notable transition. After two years of rate compression, demand volatility, and aggressive discounting, the market is beginning to stabilize, with some regional markets outperforming expectations. Despite macroeconomic headwinds, including high interest rates and suppressed housing turnover, street rates are flattening, development pipelines are easing, and occupancy is hovering above pre-pandemic levels.

 

Key Themes

• National advertised rents are flat year-over-year but showing positive sequential growth.
• Midwest markets, particularly Chicago and Minneapolis, are outperforming.
• Lease-up supply is cooling nationally, but oversupplied Sunbelt metros still face pressure.
• Boat & RV storage is showing signs of a mild rebound with rent growth and a slowdown in new deliveries.
• Investment volume has slowed, particularly for portfolio sales, but individual asset sales remain active.

 

Rent and Occupancy Trends

According to Yardi Matrix and RentCafe, the national average street rate for self-storage reached $16.90/SF in June 2025 (a 0.1% decrease YOY, but a 0.7% increase month-over-month, indicating a shift toward stabilization.

 

• Climate-Controlled (CC) Units: +0.4 YOY
• Non-Climate-Controlled (NCC) Units: -0.4% YOY
• REIT Rents: +1.3% YOY in June (up 0.7% from May)

 

Occupancy is down slightly from pandemic highs but remains stable. Delinquency concerns are rising, particularly in more price-sensitive markets.

 

Market Performance

Chicago (+2.9% YOY) and Minneapolis (+1.3% YOY) continue to outperform, benefiting from limited new supply and steady housing market support. Minneapolis saw its trailing three-year lease-up supply drop from 20.3% (2022) to just 4.1% in June 2025.

 

Weak Spots: Charlotte, Denver, and Tampa Face Pressure

 

• Charlotte: Rates down -1.4% YOY amid heavy new supply (15.3% Inventory added over 3 years)
• Denver: Despite lower new supply, demand has waned due to housing affordability issues.
• Tampa: Monthly rent dropped -0.3% in June, short-term demand from prior hurricane activity is fading.

 

Top 10 Markets by MOM Rent Growth | June 2025

Source: Yardi Matrix, data as of July 8, 2025

 

Consumer Behavior & Operational Strategy

From Storable’s 2025 Industry Pulse Report:

 

• “Storage Near Me” hits 5-Year Low
• Occupancy is soft, but above pre-2020 levels
• Delinquencies are rising
• Rates down from pandemic highs ($120 vs $80)

 

Construction & Development Outlook

Nationwide, 53.4 million NRSF of storage space is under construction, 2.7% of existing stock, a decline from previous months. However, the development focus is returning to the Sunbelt, with 17 of the top 30 metros above the national average.

 

Notable Activity:

• San Antonio: +0.8% MOM increase in construction
• Las Vegas: Highest share under construction at 6.6% (down from 7.2% due to completions).
• Frisco, TX & Fayetteville, NC: Overbuilding has led to steep rent declines (-17.4% YOY in Fayetteville)

 

Top 10 Markets Under Construction Supply by Percent of Existing Inventory

Source: Yardi Matrix, Data as of July 8, 2025

 

Sales Volume & Investment Market

Per CoStar and RCA, the self-storage investment market has cooled in 2025 amid economic uncertainty and persistently high interest rates. In Q2 2025, the sector recorded $751.8 million in sales volume across 400 transactions, down from $1.27 billion in Q1 and marking the lowest quarterly total in over a year. The average cap rate increased to 7.4%, while the average price per square foot fell to $109.31, reflecting investor caution and softening fundamentals.

 

Q2 2025 By the Numbers:

• Sales Volume: $751.8M
• Average Cap Rate: 7.4%
• Price Per SF: $109.31

 

Boat & RV Storage

Despite falling from 2021’s boom, the RV and boat storage sector is stabilizing in 2025. As of Q2, the market continues to rebalance, with rent recovery outpacing that of traditional self-storage particularly in Western and Midwestern markets. Notably, pricing has rebounded after a 024 correction, with 2025 sales averaging $505,000 per acre, up from $308,000 last year, signaling renewed investor interest in select high-performing locations. However, transaction volume remains subdued, and overbuilt suburban nodes, especially in Texas and Florida, continue to weigh on long-term rate performance.

 

• Rent Growth: +1.1% YOY in March, led by small-unit types (10X20 to 10X30: +1.3%.
• Chicago: Top-performing market with +4.2% YOY parking rent growth.
• Construction Activity: 58 projects under construction, down 64 in late 2024.
• Trailing 36-Month Supply: Declined to 15.8% in March, easing competitive pressures.

 

Boat & RV Storage | National Average Annualized Street Rates (Per SF for Main Unit Types)

Source: Yardi Matrix, Data as of April 10, 2025