May 2026 self storage report: Rates fall annually, stagnate monthly

The U.S. self storage market held steady on a monthly basis in May 2026, with the national average street rates unchanged at $133 from April. Year-over-year, however, rates remain under pressure, down 2.2% from May 2025. Among the 150 largest U.S. cities, 70% recorded annual rent declines — a slight improvement from the 72% that posted drops in April, with 30% of cities now showing growth.

The modest month-over-month stabilization offers a tentative signal that the prolonged correction may be losing momentum, even as oversupplied markets continue to weigh on the national average. On the supply side, the industry is pulling back: forecasted 2026 deliveries for the top 150 cities amount to nearly 12 million square feet, a 15% decline from 2025’s pace, as developers respond to elevated inventories and a slower interstate migration activity that tempers the demand for self storage.

Oversupply and softer demand weigh on Sun Belt and Coastal markets

Rent declines in May 2026 are most pronounced in markets contending with elevated inventories, slowing population growth, or a surge of recent new supply. Seven of the top 10 cities for annual rent drops are located in the Sun Belt, where years of aggressive development have left several markets with more storage than current demand can support.

Santa Rosa, CA, registered the steepest year-over-year decline at 8.7%, with average rents sliding to $167 per month. The city’s inventory stands at 8.3 square feet per capita — above the national average — and just 50,800 square feet are on track for 2026. Santa Rosa’s economy, though stabilizing, still faces slow growth and higher costs this year, which means its recovery will likely occur when the city rebounds in housing activity and moving trends.

The second-largest decrease was in Cape Coral, FL, which posted a 7.3% annual decline, bringing average rents to $150 per month. At 8.7 square feet per capita, the city is already above the national norm, and the 142,700 square feet delivered in 2025 has added to the inventory overhang. Notably, Cape Coral has more than 471,200 square feet scheduled for 2026 delivery — the fourth-largest pipeline among any city nationally — which is likely to sustain downward pressure on rates well into next year.

Glendale, CA,  posted the third largest decrease: a 7.2% annual drop to $280 per month, despite holding one of the tightest supply profiles in the country at just 2.1 square feet per capita. The decline here may reflect broader softening across the Los Angeles metro rather than local oversupply, though 85,200 square feet of new space is slated for 2026 delivery. At $280, Glendale still commands the highest average rent among the top five decline markets by a wide margin.

The fourth steepest drop was recorded in Newark, NJ, a city that slid 7.0% year-over-year to $125 per month — less than the national average and a notable reversal for a market that once led the nation in rent growth. The 101,796 square feet delivered in 2025 may be the primary culprit, as it’s an almost outsized addition relative to the city’s existing inventory. Another factor may be the city’s moderate transition from a period of sustained economic weakness, as per the Federal Reserve Bank of New York. No further deliveries of self storage are currently forecast for 2026, which may allow rates to stabilize as the new supply is absorbed. For further context, Newark’s supply remains extremely tight at just 1 square foot per capita, which makes the decline all the more striking.

Seattle, WA, rounded out the bottom five with a 6.5% annual decline to $174 per month — still quite above the national average of $133. The city’s 4.3 square feet per capita falls below the national average, so the 313,800 square feet added in 2025 appears to have yielded more competitive prices without getting anywhere close to oversupply. With only 23,737 square feet projected for 2026, Seattle’s market may find firmer footing as the pace of new deliveries slows considerably.

Undersupplied markets and growing economies drive rent gains in Santa Clarita, Lincoln and beyond

The clearest rent growth in May 2026 is concentrated in cities where storage availability remains well below the national benchmark of 7 square feet per capita — or where population and economic expansion continue to generate sustained demand for space. Santa Clarita, CA, leads all U.S. cities with a 9.6% year-over-year increase, bringing the average monthly rent to $189, well above the national norm. With just 4.4 square feet of storage per resident — well short of the national average — the city’s self storage inventory has struggled to keep pace with its booming economy and expanding population. No new supply was delivered in 2025, and none is currently projected for 2026, meaning the supply crunch shows no near-term relief.

Montgomery, AL, posted the second-largest annual gain at 7.3%, with rents averaging $81 per month — among the most affordable in the country. The 109,710 square feet delivered in 2025 likely reflect a recent wave of development responding to long-standing demand, and with nothing currently in the 2026 pipeline, operators appear confident that the local market can absorb the new supply without significant pricing pressure. For context, Montgomery’s 15.1 square feet per capita is more than double the national average.

The third-largest uptick was in Lincoln, NE, which climbed 6.2% year-over-year to $128 per month. The city sits almost precisely at the national supply norm of 7 square feet per capita, which suggests that rents here are edging up towards the national average in tandem with its inventory. With 236,668 square feet projected for 2026 delivery — the largest pipeline among the top five rent-growth cities — Lincoln’s continued expansion reflects developer confidence in sustained demand. Neighboring Omaha, NE, also posted a solid 5.4% annual gain, reaching $100 per month, supported by a modest inventory of 7.5 square feet per capita and no new supply currently in the pipeline for 2026.

Port St. Lucie, FL, rounds out the top five with a 5.5% year-over-year increase to $128 per month. The city’s population has grown dramatically in recent years, fueling persistent demand despite a supply level of 6.4 square feet per capita that falls just short of the national norm. No new deliveries are scheduled for 2026, which should continue to support upward pricing in the near term.

The development pipeline contracts in 2026, though Sun Belt cities still lead new supply

The national self storage development pipeline is cooling in 2026, with forecasted deliveries for the top 150 cities totaling close to 12 million square feet — down 15% from 2025’s pace. The pullback reflects a broader industry recalibration as developers respond to elevated inventories, a sluggish housing market, and the reduced moving activity that has weighed on demand over the past two years. Despite the overall contraction, construction activity remains concentrated in Sun Belt metros, where population growth and land availability continue to support new projects.

Top Cities for 2026 Construction

Houston, TX, leads the 2026 national pipeline with 789,519 square feet scheduled for delivery, adding to a market that already offers 7 square feet of storage per capita — precisely at the national norm. The city’s scale and continued household growth sustain developer confidence even as the pace of expansion moderates. Las Vegas, NV, follows closely with 767,195 square feet on track for 2026, representing a 5% increase from the prior year. The Las Vegas Valley has long maintained a generous storage footprint, and the continued pipeline suggests that operators still see room to expand despite the competitive inventory levels.

Phoenix, AZ, is set to add 471,840 square feet in 2026, a 4% increase from 2025, in a market that sits at 5.6 square feet per capita — still below the national average and supportive of continued development. Cape Coral, FL, ranks fourth with 471,280 square feet projected, a standout 22% jump from the prior year that distinguishes it as one of the most aggressively expanding markets in the country — and one whose rent declines, noted above, are likely to persist as a result. San Diego, CA, rounds out the top five with 384,284 square feet forecast for 2026, a 6% increase, in a market with 4.2 square feet per capita where new supply is generally welcome.

Conclusion

Looking ahead, the path to broader market recovery will depend on how quickly oversupplied Sun Belt markets absorb their incoming inventory, and whether the modest improvement in the share of cities posting annual rent growth can be sustained into the second half of 2026. The month-over-month stability recorded in May offers a cautiously constructive signal, but with 70% of major cities still in negative territory year-over-year, meaningful recovery remains a gradual process.

Methodology

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

This report considers self storage rents and forecasted construction for 2026 based on May 2026 data.

The report features the 150 most populous cities that have a self storage inventory of at least 10 units. The self storage street rate is calculated as the weighted averages of the street rates for all storage unit sizes, including both non-climate-controlled and climate-controlled units included.

For data on population changes, we turned to the U.S. Census (2019–2024 dataset).

Data on self storage street rates, deliveries and 2026 forecasted construction activity came from our sister division Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self storage sectors.

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 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.

Want to explore how this trend has developed over time? Check out our previous reports for historical data and insights on the topic:

• • April 2026 self storage report: Rents up from March, yet down year-over-year
  • March 2026 self storage report: Rents slide in most U.S. cities
  • February 2026 self storage report: Rents slip nationally for first time since 2025 as seasonal cooling takes hold
  • January 2026 self storage report: Rents hold steady nationwide as market enters third month of stabilization
  • December 2025 self storage report: Stabilizing rents close the year amid heavy construction pipelines