Self Storage Services NAICS 531130

Nov 20, 2025 - Self-Storage Supply to Rise

• US supply of net rentable square feet (NRSF) of self-storage space is expected to rise this year and next, putting downward pressure on rent growth, according to a Q4 2025 forecast by Yardi Matrix. NRSF in the self-storage industry is expected to rise 4.3% in 2025 and another 4.6% in 2026 amid an unexpectedly high influx of new construction. However, new construction is lagging 2024 levels and is down 21% from the peak seen in 2023. While Yardi forecasts that self-storage construction activity will slow after 2026, national advertised rental rates in September saw year-over-year growth for the first time in three years, which could attract investments in new space. Between 2027 and 2030, self-storage NRSF growth is forecast to be essentially flat, which could spur rent growth and occupancy for existing facilities.
• Several top US-based self-storage real estate investment trusts (REITs) saw net operating income soften in the third quarter of 2025, but occupancies stabilized. CubeSmart’s same-store net operating income (NOI) fell 1.5% year over year in Q3 2025, and occupancy dropped to 89.9% from Q3 2024’s 90.8%. Extra Space Storage’s same-store NOI was down 2.5% from the third quarter of 2024 but occupancy rose to 93.7% from 93.6% over the same period. Public Storage’s same-store NOI increased 0.1%, and occupancy fell from 92.7% in Q3 2024 to 92.2%. National Storage Affiliates Trust’s NOI dropped 5.7% in Q3 2025, and occupancy fell to 85% from 86.5% in Q3 2024.

• The self-storage sector continues to stabilize after pandemic-era highs, according to a recent report by Cushman & Wakefield. In the first half of 2025, self-storage transaction volume reached $2.8 billion, nearly flat year-over-year but aligned with pre-pandemic norms. In Q2 2025, valuations stood at $159 per square foot, down 12% from their Q1 2023 peak of $174 per square foot (PSF). Cap rates have held steady around 5.8% over the past six quarters, and national occupancy remains strong at about 90%. However, rental rates have moderated, falling to an average of $127 PSF in Q2 2025 from the peak of $134 PSF in Q3 2023. Development has slowed due to elevated costs, tariff risks, and tight debt liquidity, placing more projects on hold. Despite these headwinds, investor interest remains robust, especially in secondary markets and value-add opportunities, with nearly two-thirds of self-storage investors planning to be net buyers through 2026.
• Renters were the sole driver of the rise in household formations in the second quarter of 2025, according to the Census Bureau’s most recent Housing Vacancy Survey (HVS) and the National Association of Home Builders (NAHB). In Q2 2025, the total number of US households increased to 132.5 million, up by 1.2 million compared to 131.3 million in the second quarter of 2024. The increase in new households was entirely driven by renters, amid the lowest homeownership rate since 2019. US homeownership fell to 65% of total households in Q2 2025 and was 4.2 percentage points below the 25-year average of 66.3%. High home prices, elevated mortgage rates, and low inventories have pushed housing affordability to the lowest level in decades. Home sales and homeownership are demand drivers for self-storage services.