May 2025 Marks Turning Point for Self Storage Rates After Years of Corrections

The self storage market is showing encouraging signs of recovery. In May 2025, national street rates held firm year-over-year, marking the first time in years with no annual drop while ticking up 0.7% month-over-month. The average rent now stands at $136 per unit, matching May 2024 and slightly exceeding last year’s average. As the peak moving season gains momentum, the sector appears to be entering a more sustainable and optimistic phase, with stabilization of rates likely to continue.

Of the nation’s 150 largest cities, 78 (52%) recorded price decreases in May, while 64 (42%) experienced rate increases. Although the market has only recently emerged from a prolonged period of price corrections, construction activity in the country’s largest urban centers remains strong and, in many cases, is even accelerating. Approximately 14.3 million square feet of new self storage space is expected to be delivered in these markets in 2025, representing a 9% increase compared to 2024. By contrast, national construction activity is slowing, with about 56 million square feet projected for delivery in 2025, a 7% decline from the previous year.

Southern and Western cities see the bulk of price decreases

No major U.S. city posted a double-digit drop in rates in May 2025, but Frisco, Texas, came close, with rents falling 9.9% to $127. Despite Frisco’s low per capita inventory of just 3.8 square feet, or about half the national average, its location within the supply-rich Dallas-Fort Worth metro area exposes it to intense competitive pressure from neighboring markets. McKinney, another DFW-area city, also saw significant street rate erosion, with prices down 6.3% year-over-year. McKinney has a relatively high per capita inventory of 8.4 square feet, with an additional 308,000 square feet scheduled for delivery this year, but the city’s whopping population growth of close to 17% over the past five years contributes to the absorption of fresh supply. Also in Texas, Austin saw street rates decline by 5.1%, bringing the average to $131. However, rates remained flat compared to April 2025, suggesting signs of monthly stabilization.

Fayetteville, North Carolina, recorded the second-largest year-over-year drop among major cities, with rates declining 7.6% to $108. In contrast to Frisco, Fayetteville is an oversupplied market, with more than 12 square feet of storage space per capita. Although construction has eased compared to 2024, approximately 72,000 square feet are still slated for delivery this year, adding further pressure on pricing.

On the West Coast, Oxnard and Santa Clarita, California, experienced notable rate declines of 5.6% and 4.9%, respectively. Despite their relatively limited inventories of around 5 square feet per capita, operators in both markets appear to be adjusting rates to attract demand. Even after the declines, average rents remain well above the national level, at $169 in Oxnard and $173 in Santa Clarita.

Tight supply and growing demand are driving up prices along the Eastern U.S.

At the other end of the spectrum, limited supply and steady population growth are driving up self storage prices in several key markets across Florida and the Northeast. Florida’s Pembroke Pines and St. Petersburg posted the largest annual increases in May, with street rates rising 9.7% and 8.6%, respectively. Pembroke Pines, with just 2.4 square feet of storage per capita and no new supply in either 2024 or 2025, now commands an average rent of $181. St. Petersburg is similarly undersupplied, though to a lesser degree, with average rents roughly $20 lower.

Fontana, California, was the only West Coast market to register a significant rate increase in May, with rents rising 7.6% year-over-year to $142. The city has just 3.4 square feet of storage space per capita and has seen no new deliveries over the past two years. None are currently planned for 2025, contributing to upward pricing momentum.

Further north on the East Coast, Yonkers, New York, recorded a 7.1% increase in May, with the average unit now renting for $195. The city’s storage inventory remains tight at just 2 square feet per capita, while its population has grown nearly 5% over the past five years. Housing constraints — apartments here average under 750 square feet — further drive demand. Construction has picked up modestly, with 68,000 square feet delivered in 2024 (equivalent to 7% of total stock) and another 61,000 square feet slated for the current year.

In Newark, New Jersey, where per capita inventory is under one square foot, rates rose 6.1% in May. Construction activity is gaining pace, with more than 67,000 square feet delivered in 2024, twice as much as the previous year, and an additional 100,000 square feet expected by year’s end. Other East Coast markets with significant rate increases include Washington, DC, and Boston, Massachusetts.

Jacksonville, FL, and Los Angeles, CA, triple their forecasted deliveries year-over-year

Sun Belt cities dominate the list of markets with the most aggressive self storage construction plans for 2025, with New York City the only major exception.

Jacksonville, Florida, leads the nation with nearly 890,000 square feet of new storage space expected this year, more than triple the 2024 total. Despite an inventory of nearly 10 square feet per capita, the city’s strong population growth and thriving economy continue to support storage demand. Average rents remain close to the national norm, at $133 per unit.

Top Cities for 2025 Construction

Los Angeles ranks second, with over 650,000 square feet planned for 2025, also tripling the previous year’s total. However, with only 2 square feet of inventory per capita, LA’s undersupplied market commands some of the highest street rates in the country, currently averaging $257 per unit.

New York City ranks fifth for new self storage construction, with more than 515,000 square feet in the development pipeline after a year of zero deliveries. The city’s per capita inventory stands at just 2.4 square feet, and units now average $207 per month.

Texas remains highly active, with Houston, San Antonio and McKinney all ranking among the top 10 for projected deliveries. Houston and San Antonio are each on track to add more than 600,000 square feet of space, while McKinney is expected to deliver half that amount.

The Mountain West also continues to see robust growth. Phoenix is expected to deliver close to 500,000 square feet by year-end, while Las Vegas and Tucson each have approximately 400,000 square feet of new inventory in the pipeline.

Here’a how street rates and inventory are looking in the 150 largest cities in the U.S.:

Methodology

This analysis was conducted by  RentCafe Self Storage, an online platform offering nationwide listings for apartments and storage units.

The article is based on our research into self storage data from our sister division, Yardi Matrix, a business development and asset management tool widely used by brokers, sponsors, banks and equity sources for underwriting investments in the multifamily, office, industrial and self storage sectors.

The report considers the largest 150 cities by population with an active self storage inventory of at least 10 facilities.

This report analyzes self storage rents and deliveries estimates for 2025 based on May 2025 data.

The self storage street rate is calculated as the weighted averages of the street rates for all storage unit sizes, non-climate-controlled and climate-controlled units included.

For the ranking, we analyzed the total rentable square footage within Yardi Matrix’s coverage area, calculating each company’s inventory as a percentage of the nation’s total inventory or each state’s inventory, depending on the scope. The data is accurate as of January 2025.

For data on population changes, we’ve turned to the U.S. Census (2018-2023 dataset).

Please note that data and coverage areas may evolve, and actual figures are subject to change.

Fair use and distribution

This study is intended as a resource for the general public on topics of common interest and should not be considered investment advice. The data presented is accurate to the best of our knowledge, based on thorough and good-faith research, but it may change due to external factors.

We permit the distribution of this content, provided that proper attribution is given to “RentCafe Self Storage” with a link back to the research study.