Self Storage Development Boom Cools, But Prices Still Rise In 39% Of Major U.S. Cities

The U.S. self storage industry is adjusting to a new market reality following an unprecedented boom during the pandemic. A mix of elevated supply levels, softening consumer demand in certain areas and some economic alarm bells has generated a rebalancing of the sector.

Nationally, self storage rental rates have trended downward since early 2023, and by March 2025, average asking rents stood at $134—down 0.7 % year over year. While the pace of price declines has eased compared to earlier quarters, the broader trend indicates a cooling market.

However, the price movement isn’t uniform. Among the country’s largest 150 cities by population, 46% experienced year-over-year price decreases in March 2025, 15% saw the same street rates, while 39% recorded gains. Meanwhile, construction activity is slowing but still very substantial—nearly 58 million square feet of new space was delivered in 2024 nationwide, with another 56 million square feet forecasted for 2025—a slight 3% national decrease, reinforcing a market that is entering a more cautious growth phase, but still active.

Online search volumes for self storage related topics—a significant indicator of demand—presents a nuanced picture of the industry. Across the top 150 U.S. cities, Google searches rose by 8% in 2024 compared to the previous year, suggesting continued consumer interest at a national level. However, this growth has not been uniform. While many cities—particularly in high-growth regions or areas with limited housing space—recorded substantial increases, others saw search volumes flatten or decline, often in tandem with significant deliveries in recent years.

Oversupplied markets feel the pinch: Prices tumble in Phoenix, San Antonio

Markets seeing rent declines often share a common denominator: aggressive development pipelines that have outpaced short-term demand. This trend is especially pronounced in many Sun Belt metros, which saw a surge of self storage construction during the pandemic as remote workers relocated to warmer, more affordable cities. That migration wave drove rapid demand—but now, as moving activity slows and population growth normalizes, supply is catching up and, in some cases, overshooting.

In Phoenix, AZ, and nearby Scottsdale, ongoing development is putting downward pressure on self storage prices as supply continues to surge. Phoenix alone is expected to see nearly 500,000 square feet of new storage space delivered in 2025, its fourth straight year of inventory growth. But with so many options available, competition is driving rates down. At the same time, demand appears to be cooling, with fewer residents actively searching for storage online. Whether due to changing household needs or economic caution, many may be holding off on rentals, giving landlords little choice but to adjust prices.

Scottsdale presents a similar picture. The market already has 8.2 square feet of storage per capita—well above the national average for urban areas—and additional deliveries are expected this year. Rents declined 3.6% year-over-year in March 2025, while search activity dropped 30%.

San Antonio, TX, is also feeling the impact. Online search interest in the city remained flat in 2024, while rents fell by 3.2% compared to the previous year. The local inventory stands at around 9 square feet per capita, and with as much as 800,000 square feet in new supply forecasted for this year, the imbalance between demand and availability may widen further in the near term.

Even in smaller markets like Fayetteville, NC, the effects of oversupply are evident. The city experienced a remarkable 50% increase in online searches—suggesting strong consumer interest—yet rents dropped 9.3% year-over-year. That contradiction can likely be traced to inventory levels, which now exceed 12 square feet per capita following significant development in recent years. In this case, the surge in available space appears to be temporarily outpacing even robust demand.

Relocation favorites like Miami and Houston maintain strong pricing despite supply growth

While many Sun Belt self storage markets are seeing rent declines in response to rising inventory and slowing home sales, not every metro is following the same script. In fact, several high-growth migration hubs are bucking the trend – testing renters’ budgets with rising rates as demand remains strong and inventory relatively tight.

Miami, FL, remains a relatively expensive self storage market, with average street rates holding at $176 per month. Google searches for storage in the area jumped 30% in 2024, pointing to strong ongoing demand. Although the city has added new supply in recent years and is expected to deliver another 348,000 square feet in 2025, its inventory remains relatively tight at under 4 square feet per capita. With continued population growth and limited living space, Miami’s storage market is showing resilience—rents have even edged up 1% year-over-year.

Tampa, FL, is also seeing upward pricing momentum. Local inventory is higher than Miami’s—at about 6.9 square feet per capita—but still below the national benchmark of 7. Following two consecutive years with no new deliveries, rents rose 4.7% year-over-year in March, with monthly rates averaging $135. The absence of recent development likely helped tip the balance toward price increases.

Further north, Jacksonville, FL, is experiencing a similar trend. Despite having a more generous supply of 9.6 square feet per capita and consistent new deliveries across 2023 and 2024, the market has seen rents climb by 0.8% year-over-year this March. This growth appears to be demand-driven, as Google searches for self storage in Jacksonville spiked nearly 50% in 2024. With a steadily expanding population and a diverse economy powered by logistics, tourism and services, Jacksonville seems well-positioned to absorb new supply. Another 600,000 square feet of space is on track for delivery in 2025, which could help moderate prices going forward.

Over in Texas, Houston is also defying regional pricing pressures. The city posted a 1.6% rent increase year-over-year, alongside a 28% increase in search activity. While new development continues across the metro, the scale of Houston’s population growth and economic diversity—ranging from energy to tech and healthcare—appears to be keeping demand in balance with supply.

Demand in Northeast cities is outstripping the existing supply

While oversupply has pushed rents down across the U.S., cities with limited new construction, dense populations, and stable demand are seeing rents hold firm—or even rise.

In the Northeast, where land is scarce and development is more heavily regulated, constrained supply continues to support pricing power. Yonkers, NY, is a clear example. In 2024, the city recorded a 7.3% year-over-year rent increase, alongside a dramatic 140% spike in Google search activity for self storage—one of the sharpest rises among major U.S. cities. Notably, Yonkers saw no new self storage deliveries in 2024, and none are forecasted for 2025. Strict zoning rules and lengthy approval processes have made it increasingly difficult for developers to add new facilities in the area. With just 2 square feet of storage space per capita—well below the national average of 7—the market remains supply-constrained. Monthly rents now surpass $190, proving how limited availability can drive pricing even in smaller urban markets.

Nearby Jersey City, NJ, mirrors this trend. The city reported a slight rent increase and a 26% bump in search volume, suggesting strong ongoing demand despite little change in available inventory. A typical storage unit now rents for $189 per month—well above the national average. As in Yonkers, local development hurdles and high population density help keep supply in check, which in turn supports pricing.

West Coast: Rent increases go hand-in-hand with the hot housing market

In Los Angeles, CA, the combination of a competitive housing market and constrained residential space has made self storage a practical necessity for many residents. With fewer people able to upsize their homes, off-site storage is increasingly being used to manage overflow—whether for personal belongings, shared household space, or small business needs. Google searches for self storage in L.A. surged by 53% in 2024, signaling growing consumer interest. At the same time, street rates climbed 2% year-over-year, bringing the average unit cost to almost $250—among the highest nationally. This price point reflects strong demand and a tight supply environment, with only 1.8 square feet of storage space per capita. To help meet demand, more than 500,000 square feet of new inventory are expected to come online in 2025.

Up north, San Francisco continues to see upward rent pressure amid minimal new construction. The city hasn’t seen significant deliveries in recent years and has no new projects planned for 2025. As a result, average rates rose 5.2% in 2024 to $245 per month. High urban density and limited housing flexibility keep self storage demand resilient in this market.

Further inland, Fresno, CA, is experiencing similar dynamics. While its inventory—around 7 square feet per capita—is more in line with the national average, strong demand and a lull in recent deliveries are pushing prices higher. Local rates increased by 4% over the past year, reflecting a healthy and growing appetite for storage in the region.

Midwest markets show consistent demand

Several Midwestern cities are quietly outperforming expectations in the current self storage landscape. In Wichita, KS, Google search activity rose 24% year-over-year, and rents remain stable despite the consistent existing supply. This reflects the city’s growing appeal, particularly among hybrid workers and families relocating from higher-cost metros seeking more space at a lower cost of living.

Chicago, IL, also posted solid performance, with rents up over 3% despite a 23% decline in search activity. This apparent paradox actually suggests stable, underlying demand driven by the city’s dense population and limited availability. With just 3.4 square feet of storage space per capita—well below the national benchmark—Chicago’s tight supply likely contributes to upward pricing pressure.

In Madison, WI, a 2.4% rent increase and a modest 1% rise in search interest point to a healthy, balanced market. As a smaller, university-oriented city with consistent housing turnover, demand remains stable and supply appears well-aligned.

The U.S. self storage market is entering a more balanced phase following several years of rapid expansion. Price declines are beginning to moderate, new construction is slowing, and demand is evolving. As the development pipeline cools—particularly in high-growth states like Texas and Arizona where developers had ramped up building—rental rates are expected to stabilize further.

A key driver behind this transition is the diversification of demand. While housing-related moves remain a major reason people use storage, newer trends are reshaping the landscape. Remote work, downsizing, and more flexible living arrangements are prompting renters to seek extra space off-site. At the same time, small businesses and online retailers are increasingly turning to storage units for inventory overflow and seasonal needs. This broadening base of users is helping to sustain demand, even as the post-pandemic surge recedes.