Self Storage Market Experiences Continued Cool Down, with Double-Digit Drops in 6% of the Nation’s Largest Cities

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  • National self storage rates dropped by 3.2% year-over-year in December
  • Self storage street rates decreased in 79% of the country’s largest 150 cities
  • Hialeah, FL, saw the steepest price drop, with self storage 14.5% less expensive year-over-year
  • Florida and Arizona dominate the top 10 cities with the steepest street rate decreases
  • Las Vegas, NV, San Antonio, TX, and Philadelphia, PA, added the most new inventory in 2023

The self storage sector remains cautiously optimistic, even though rates have continued to decrease from their pandemic-induced peak in 2022. The national average street rate for a 10’x10’ unit stood at $122 in December, reflecting a 3.2% year-over-year decrease. Self storage prices experienced declines in 79% of the nation’s largest 150 cities.

However, signs point to a stabilization of the market with a year-over-year price drop exhibiting a considerable deceleration, slowing to 3.2% from 4.7% in November 2023. Conversely, average prices flatlined in December 2023 compared to a month before, proof of the sector’s adaptability and resilience amid broader economic fluctuations.

Hialeah, FL, sees y-o-y price decreases, but street rates rebound month-over-month

Hialeah continues to show the most substantial year-over-year street rate decreases among the nation’s largest 150 cities for the second consecutive month. The rental cost for a 10’x10’ non-climate-controlled self storage unit in Hialeah was $141 in December 2023, reflecting a 14.5% reduction compared to December 2022. It is noteworthy, however, that in line with the national trend, the year-over-year price drop rate exhibited a significant deceleration in December, moderating from over 20% in November 2023. In fact, on a month-over-month basis, the cost for renting a 10’x10’ storage unit in Hialeah increased by 4.4% in December.

Three additional Florida cities secure positions among the top 10 with the most substantial street rate drops in December. The rent for a 10’x10’ self storage unit in Miami, FL, hovered around $155, reflecting an almost 11% year-over-year decrease. Pembroke Pines and Fort Lauderdale, while experiencing year-over-year street rate drops exceeding 10%, display signs of rebound, registering month-over-month price increases of 1.2% and 3.1%, respectively.

Similarly, Gilbert, Chandler, Peoria, and Tempe in Arizona are witnessing a parallel trend, characterized by year-over-year price drops in December, albeit with indications of moderation compared to the previous month. Among them, Peoria has demonstrated the most robust month-over-month rebound. Renting a 10’x10’ self storage unit in Peoria amounted to $115 in December 2023, compared to $122 the previous month.

Undersupplied Worcester, MA, tops the list of cities with self storage street rate increases

With a local inventory of approximately three square feet of storage space per capita, which is less than half the national benchmark of seven square feet, Worcester, MA, witnessed the highest surge in self storage street rates in December, experiencing an increase of 5.6%. Renting a 10’x10’ self storage unit in Worcester cost $132 in December 2023, compared to $125 in the preceding year and $126 in November 2023.

Remarkably, the second and third cities with the most significant price increases, Bakersfield, CA, and Amarillo, TX, both boast relatively well-supplied self storage markets. Bakersfield has an inventory of 8.7 square feet of storage space per capita, while Amarillo surpasses that with 11.6 square feet. This underscores that demand is the predominant factor driving price escalations in both cities.

Bakersfield, characterized as an affordable real estate market by California standards, has observed a 7% population increase over the past five years. Given that relocation is a primary driver of self storage demand, the evolution of self storage street rates in Bakersfield aligns with the population influx.

As for Amarillo, local factors such as its proximity to military installations contribute to the surge in prices. Military personnel and their families frequently utilize self storage during deployments or relocations, amplifying the demand for such services in the area.

Sunbelt cities, with Las Vegas, NV, on top, led self storage development in 2023

Sunbelt cities emerged as industry leaders in self storage construction throughout 2023, with seven of the top 10 cities showcasing the highest volumes of newly delivered self storage space located here. This region has consistently spearheaded the country’s economic development, drawing substantial volumes of domestic migration as well. Given that self storage development typically aligns with major economic and demographic trends, the prominence of southern cities in this sector comes as no surprise.

Top Cities for 2023 Self Storage Deliveries

#City2023 Completed New Supply (sq. ft.)2023 New Supply as % of InventoryCurrent Sq. Ft. per Capita
1Las Vegas, NV522,4904%7.35
2San Antonio, TX395,0442%8.82
3Philadelphia, PA383,3977%2.97
4Orlando, FL372,4135%6.74
5Houston, TX365,3717%6.75
6Tucson, AZ355,2776%8.17
7Los Angeles, CA335,39325%1.8
8Memphis, TN306,7285%7.96
9Lexington, KY290,64513%8.01
10North Las Vegas, NV286,41413%4.35
11Lubbock, TX259,1416%15.94
12Miami, FL258,2123%3.68
13Mobile, AL257,63610%9.98
14Charlotte, NC255,4754%7.08
15Fort Worth, TX247,8183%6.12
16Knoxville, TN246,3146%9.57
17Baltimore, MD240,7216%3.62
18Tallahassee, FL239,34210%10.34
19Phoenix, AZ238,5732%5.11
20Yonkers, NY228,10032%1.93
21Reno, NV212,8884%14.51
22Garland, TX199,75210%3.83
23Scottsdale, AZ194,6297%8.02
24Jacksonville, FL191,5432%9.37
25Tulsa, OK188,2514%8.98
26Omaha, NE186,3784%7.06
27Fayetteville, NC183,8387%11.29
28Greensboro, NC179,8765%10.29
29Henderson, NV179,4846%6.24
30Columbus, OH179,1344%4.36
31Gilbert, AZ171,7338%3.84
32Plano, TX170,1105%5.51
33Austin, TX168,3982%7.91
34Salt Lake City, UT164,9197%3.34
35Amarillo, TX158,4737%11.64
36Des Moines, IA156,77712%4.89
37Toledo, OH154,42010%4.49
38Winston-Salem, NC139,1367%7.03
39Worcester, MA136,06221%2.94
40Huntsville, AL127,5755%9.96
41Peoria, AZ125,2138%4.45
42Chicago, IL123,2931%3.34
43Virginia Beach, VA115,2262%10.58
44Santa Clarita, CA112,88314%3.92
45Vancouver, WA112,0244%8.19
46Sacramento, CA111,6932%4.9
47Brooklyn, NY110,7832%-
48Colorado Springs, CO109,8692%10.82
49Spokane, WA107,7464%7.26
50Louisville, KY107,4212%7.46
51Boise, ID106,8113%11.33
52Cape Coral, FL106,7847%7.14
53San Diego, CA102,7502%3.92
54Chattanooga, TN97,5175%8.38
55Seattle, WA97,4163%3.9
56Kansas City, MO96,2873%4.12
57Minneapolis, MN96,23785%1.95
58Irvine, CA94,7793%5.25
59Oakland, CA92,3686%2.44
60Staten Island, NY91,9846%-
61Elk Grove, CA91,7738%3.93
62Queens, NY89,75189%-
63Stockton, CA89,2304%6.22
64Aurora, IL89,03913%2.48
65Baton Rouge, LA87,0822%11.02
66Brownsville, TX83,4259%5.09
67Columbus, GA81,9903%11.21
68Saint Petersburg, FL81,7054%5.88
69Raleigh, NC81,0002%7.22
70Overland Park, KS80,0757%3.01
71Durham, NC77,5243%8.96
72Atlanta, GA76,46155%4.45
73Aurora, CO71,6782%4.17
74Newport News, VA71,2745%5.99
75Akron, OH71,0915%4.55
76Indianapolis, IN70,5601%6.75
77Salem, OR69,0993%8.23
78Cary, NC68,1436%4.69
79Madison, WI64,6475%4.16
80Albuquerque, NM60,0001%7.63
81Anchorage, AK59,7554%6.47
82Corpus Christi, TX59,6502%11.66
83Pittsburgh, PA58,7382%3.46
84Portland, OR53,3001%4.3
85Wichita, KS52,1362%6.73
86Grand Rapids, MI48,5873%3.72
87McKinney, TX46,1582%7.42
88Birmingham, AL46,1101%7.1
89Lincoln, NE44,4122%6.42
90Newark, NJ37,4255%0.84
91Bronx, NY34,8751%-
92Rochester, NY30,2572%3.26
93Eugene, OR13,0541%7.05

RentCafe analysis of Yardi Matrix data
* Projected construction (%) for 2023 as a percentage of the total existing inventory at the end of 2022

Las Vegas, NV, secures the leading position in self storage deliveries for 2023, witnessing an impressive addition of over 522K square feet of new space. This reflects a substantial 43% increase compared to the previous year. Presently, the per capita inventory in Las Vegas stands at 7.3 square feet. The current street rate in the city is approximately $118, with December prices experiencing a moderate 2.5% year-over-year drop, stabilizing in comparison to the previous month. Additionally, North Las Vegas, NV, emerges among the top 10 cities with the highest self storage deliveries in 2023, introducing a total of 286K square feet of new space. This represents a remarkable 143% increase compared to 2022. The noteworthy surge in deliveries underscores the area’s proactive response to the escalating demand for self storage solutions.

San Antonio, TX, scores the second position nationally in self storage deliveries for 2023, witnessing the addition of almost 391K square feet of new space. This level of development closely aligns with the figures recorded in the previous year, resulting in an inventory of 8.8 square feet of space per capita.

A very undersupplied self storage market, Philadelphia, PA, which currently benefits from only three square feet of space per capita, managed to add over 383K square feet of new space in 2023. This almost triples the level of deliveries registered in the previous year, underscoring the need for storage space in busy urban hot spots.

Another large urban center that more than doubled self storage deliveries in 2023 compared to the previous year is Los Angeles, CA. The city added over 355K square feet of space last year, representing a whopping 25% of the total self storage inventory available in LA. The per capita availability of self storage remains very low in Los Angeles, at just 1.8 square feet. These developments highlight the evolving dynamics of storage needs in major urban hubs and the efforts to address growing demand.

Methodology

This analysis was done by RentCafe Self Storage, an online platform that provides apartment and storage unit listings across the nation.

This report analyzes self storage street rates and construction deliveries in December 2023. We included the most populous 150 cities that have at least 10 self storage facilities equipped with a minimum of ten 10’x10’ storage units.

We calculated population growth over a five-year interval using data from the U.S. Census.

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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Maria Gatea is a real estate and lifestyle editor for Yardi with a background in Journalism and Communication. After covering business and finance-related topics as a freelance writer for 15 years, she is now focusing on researching and writing about the real estate industry. You may contact Maria via email.

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