Self Storage Services NAICS 531130

May 23, 2026 - Largest Self-Storage REITs Post Modest Q1 Growth

• Several top US-based self-storage real estate investment trusts (REITs) saw market conditions improve in the first quarter of 2026 amid moderating supply, although rising costs remain a challenge. CubeSmart’s same-store net operating income (NOI) fell 1.5% year over year in Q1 2026, and occupancy dropped to 89.3% from Q1 2025’s 89.6%. Extra Space Storage’s same-store NOI increased 1.2% from the first quarter of 2025, and occupancy slipped to 93% from 93.2% over the same period. Public Storage’s same-store NOI increased 0.4%, and occupancy fell 1.1% to 93.4% compared to Q1 2025. National Storage Affiliates Trust’s NOI rose 2% Q1 2026, and occupancy rose to 84.2% from 84.1% in Q1 2025.
• According to Yardi Matrix, the US self-storage supply outlook shows a modest near-term pipeline but a clear downshift in development activity. New supply is forecast to rise 3.5% in 2026 to about 52.9 million net rentable square feet (NRSF). Self-storage construction starts were down 29% year over year in the first quarter of 2026, signaling a continued slowdown. Deliveries are expected to fall to roughly 2.5% of stock in 2027 and 1.7% in 2028 as elevated interest rates, weak demand, and oversupply in some markets constrain development. Pipeline indicators reinforce this trend, with under-construction, planned, and prospective volumes all declining, while deferred and abandoned projects rise. Longer term, supply is projected to bottom in 2028 and increase slightly through 2031, but to remain well below prior-cycle peaks, reflecting subdued developer appetite for new projects and persistent structural headwinds.

• Sales of existing U.S. homes increased by 0.2% in April 2026 from March and were unchanged year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Dr. Lawrence Yun said, "Despite mixed macroeconomic signals -including a record-high stock market and historically low consumer confidence - home sales were modestly boosted by the continued improvement in housing affordability. Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains." Yun added, "Multiple offers, though not as intense as a few years ago, are still occurring. At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions." Existing home sales are a leading demand driver for self-storage services.
• A Wall Street Journal report highlights how the self-storage industry is expanding rapidly while facing increasing resistance from local governments over land-use and economic impacts. Cities across at least 15 states have imposed bans or restrictions, arguing that facilities create inactive zones and displace housing and jobs. Operators are responding with mixed-use designs, automation, and urban infill concepts to secure approvals and sustain growth. Demand surged during the pandemic, then softened, though occupancy is rising again year over year. Pricing remains a key dynamic, as operators rely on lower introductory rates while maintaining higher long-term rents, creating an average 18.9% gap. These pressures highlight a maturing industry balancing expansion, regulation, and shifting consumer demand.