Self Storage Services NAICS 531130

May 21, 2025 - Major Self-Storage REITs Post Mixed Q1 Results

• Some of the top US-based self-storage real estate investment trusts (REITs) saw net operating income and occupancy soften in the first quarter of 2025. CubeSmart’s same-store net operating income (NOI) fell 0.8% year-over-year in Q1 2025, and occupancy dropped to 89.2% from Q1 2024’s 90.4%. Extra Space Storage’s same-store NOI was down 1.2% from the first quarter of 2024, but occupancy rose to 93.4% from 92.4% over the same period. Public Storage’s same-store NOI was flat year-over-year in the first quarter, and occupancy fell from 92.1% in Q1 2024 to 91.5%. National Storage Affiliates Trust’s NOI dropped 5.7% in Q1 2025, and occupancy fell to 83.9% from 85.8% in Q1 2024. In speaking to first-quarter results, the President and CEO of National Storage Affiliates Trust said, “Despite increased economic uncertainty, we remain positive on the medium-term outlook for the self storage sector, and NSA specifically.”
• The number of retiree moves declined nearly 24% in 2024, according to analysis of Census Bureau data by moving services firm HireAHelper. High mortgage rates and home prices likely put downward pressure on retiree moves, as mortgage rates in 2024 remained around 7% and the average home price was about $500,000, according to HireAHelper. While retirement-related moves dropped in 2024, the market continues to improve compared to the drop caused by the pandemic. There were 298,400 retiree moves between 2023 and 2024 compared to 230,500 in 2021-2022. For retirees moving to a different state, Florida remains the most popular destination by a wide margin. In 2024, Florida accounted for 20% of retiree interstate moves. Minnesota was the second-most popular state with 7%. Moving and downsizing by older Americans is a demand driver for self-storage services.

• The number of building permits issued for single-family, privately-owned housing units, a demand driver for self-storage services, decreased 5.1% in April 2025 compared to March and fell 6.2% year-over-year. Single-family housing starts dropped by 1.6% month-over-month and were down 12% compared to April 2024. Single-family housing completions declined 5.9% in April from the previous month and decreased 12.3% year-over-year. Housing starts in April were pressured by tariff-related economic uncertainty, high mortgage rates, and rising costs for building materials, according to the National Association of Home Builders (NAHB). Single-family permitting and housing starts are indicators of future demand for self-storage.
• The recently released “The Real Cost of Clutter” report by self-storage software firm Storable details how underused possessions affect Americans’ lives. According to a survey of 1,000 Storable customers, 21% of respondents said that storing items takes up more than 500 square feet of their residence. More than half of those surveyed said that things they seldom use occupy between 100 and 500 square feet of their homes. Nearly a third of respondents said at least half of their garage is filled with clutter. Almost 75% of those surveyed said the cluttered areas of their homes stress them, and more than 30% said they avoid having guests due to clutter.