Self Storage Rental Rates Keep Tumbling Down, With FL Cities Seeing The Most Significant Plunges
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- Self storage street rates took a 4.7% annual plunge in November 2023
- In about 86% of the largest cities, rent prices saw reductions
- Florida dominates the top 10 cities for self storage rent increases, taking up half of those spots
- Hialeah, FL, registered the highest street rate plunge, standing at 20.6% year-over-over, followed by Fort Lauderdale, FL, and Orlando, FL
- Newark, NJ, experienced the steepest street rate increase, largely due to low supply
After a remarkable evolution in 2022, self storage rents followed a downward path in 2023. The decrease resulted from a mix of factors that included a solid existing inventory and a tougher housing market prompting slower moving activity — which support self storage demand. In November 2023, a standard 10’x10’ non-climate-controlled unit rented for $122, marking a 4.7% year-over-year drop. The same pattern is reflected on a month-to-month basis, with a 0.8% drop compared to the previous month. In 86% of the largest 150 cities, street rates went down annually.
FL cities take over the top 10 places for self storage rate decreases
Florida cities dominate the top 10 places for self storage rent decreases, taking up half of the spots in the top 10.
Hialeah climbed to the first position for rent decreases in November 2023, with a 20.6% year-over-year drop. The Florida city lost 6% of its population in the past five years, based on U.S. Census estimates, which contributed to the lower demand for self storage and the drop in rates. Hialeah storage came down to $135 for a 10’x10’ non-climate-controlled unit and $1.30 per square foot in November 2023.
Fort Lauderdale (−17%), Orlando (−14.8%) and St. Petersburg (−13.9%) also joined the ranks of Florida cities registering some of the fastest-declining rent rates among big cities. Renting storage in Fort Lauderdale came down to $127 for a standard unit and $1.50 per square foot in November 2023. Orlando and St. Petersburg units rent for $136/month and $104/month, respectively, for the same type of unit. Both cities have relatively comparable per-square-foot rates, with Orlando having an average price of about $1, while in St. Petersburg you’d pay about $1.20 per square foot of storage.
Moving on to the East Coast, Boston, MA, also registered marked street rate declines, at 13.2% year-over-year. That brought the price of Boston storage to $171 for a standard unit and about $2 per square foot in November 2023.
Out West, Rancho Cucamonga, CA, also experienced annual self storage rent decreases, standing at 12.8%. The cost of a standard Rancho Cucamonga storage unit was $157 and $1.40 per square foot in November 2023.
Confronted with undersupply, street rates spike in New Jersey and New York cities
Newark, NJ, tops the charts for street rate hikes, climbing 8% year-over-year. Besides registering a whopping 8% population increase in the past five years, the city also has a low inventory relative to population — at 0.8 square feet per capita. These conditions helped to push rents up in November 2023. Renting storage in Newark, NJ, calls for $148 for a standard unit and $1.70 per square foot.
In neighboring New York City, more than one borough popped up on the list of cities with fast-growing street rates. Brooklyn saw a 3.5% year-over-year rent increase, while in both Manhattan and Queens, street rates went up by 2.1%. As such, a Brooklyn unit rents for $269 while per-square-foot pricing stands at $2.70, based on November 2023 rates. In Manhattan, a standard unit rents for $397 and a square foot costs $4.30. Moreover, locals pay about $244/month for a standard Queens unit and $2.40 per square foot of storage.
Another East Coast location, Worcester, MA, also witnessed self storage rate surges, marking a 2.4% annual increase. The city saw its population balloon by 10% in the past five years. Additionally, the low self storage availability, which translates to 2.9 square feet per person, coupled with the population growth, helped to set the scene for higher street rates. Renting a Worcester unit came down to $126/month and $1.20 for a square foot in November 2023.
On the opposite coast, Bakersfield, CA, also stands out for annual surges in self storage rates with a 5.7% increase. The local population shot up by 7% in the last five years, prompting a surge in demand, which partially accounts for the rent increase. Renting a Bakersfield unit calls for $92/month, while a square foot of storage costs $0.78.
Methodology
This analysis was done by RentCafe Self Storage, an online platform that provides apartment and storage unit listings across the nation.
This report looks at self storage rent rates in November 2023. In our analysis, we considered the largest 150 cities by population that have at least 10 self storage facilities equipped with a minimum of 10 10'x10' storage units.
Stats on on remote workers were taken from the U.S. Census (2021 data set).
Data on self storage street rates and construction estimates for 2023 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 redistribution
We encourage you and freely grant you permission to reuse, host or repost the research, graphics and images presented in this article. When doing so, we ask that you credit our research by linking to RentCafe Self Storage or this page, so that your readers can learn more about this project, the research behind it and its methodology.
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Mirela is a real estate writer and lifestyle editor for Yardi. With an academic background in English and translation, Mirela now covers a range of topics including real estate trends, lifestyle and economy. Her previous experience in proofreading academic articles has inspired Mirela to choose a writing career path. In her free time, Mirela enjoys reading, but also hiking and creating art. You can contact Mirela via email.
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