{"id":142228,"date":"2025-08-20T04:26:01","date_gmt":"2025-08-20T11:26:01","guid":{"rendered":"https:\/\/www.rentcafe.com\/blog\/?p=142228"},"modified":"2025-09-04T04:57:51","modified_gmt":"2025-09-04T11:57:51","slug":"california-keeps-up-self-storage-construction-in-2025","status":"publish","type":"post","link":"https:\/\/www.rentcafe.com\/blog\/self-storage\/california-keeps-up-self-storage-construction-in-2025\/","title":{"rendered":"California Keeps Up Self Storage Construction, Leading the West in 2025 Development"},"content":{"rendered":"<div style=\"background-color: #edf1f5; padding: 20px; border-radius: 5px;\">\n<ul style=\"margin: 0; line-height: 1.6;\">\n<li>California leads the Western U.S. in projected self storage construction for 2025, with approximately 4.9 million square feet of new space planned \u2013 trailing only Florida and Texas nationwide.<\/li>\n<li>The bulk of development is concentrated in Southern California, particularly in Los Angeles and the Inland Empire, where current supply per capita falls short of the national benchmark of 7 square feet.<\/li>\n<li>Street rates have increased in 62% of California cities, especially across the Inland Empire.<\/li>\n<li>Cities seeing declining rents are largely located in the LA metro, Inland Empire, Sacramento, San Diego, and San Francisco areas.<\/li>\n<\/ul>\n<\/div>\n<p>With high housing costs and a large remote-working population, demand for self storage remains robust in California. The state has a total inventory of 233 million square feet, with 14% of it built in the last decade. Overall, California offers 6.5 square feet of storage per capita, just shy of the 7 square feet national benchmark that signals a balanced market. However, supply is not evenly distributed, with 78% of cities falling below that benchmark.<\/p>\n<p><em>&#8220;California presents a unique contradiction when it comes to self storage,&#8221;<\/em> <strong>says Victor Maghear<\/strong>, analyst at StorageCafe. <em>\u201cWhile the overall inventory is high, distribution is uneven when adjusted for population \u2014 where demand is actually measured.\u201d<\/em> In smaller cities like <em>Lebec, Rio Vista, and Lucerne Valley<\/em>, storage availability <em>exceeds 20 square feet per capita<\/em>, while larger urban centers <em>like LA and San Francisco struggle with around 5 square feet per capita or less<\/em>, despite <em>consistently high demand<\/em>. <em>&#8220;In dense urban environments, there&#8217;s simply less space left for self storage,&#8221;<\/em> Maghear added.<\/p>\n<p>To meet demand, <strong>California is projected to add over 4.9 million square feet of self storage in 2025<\/strong>, slightly outpacing 2024 construction levels by 2%. About 2% of this new supply \u2013 roughly 79,000 square feet of space \u2013 \u00a0is projected to come from property conversions, often repurposed commercial buildings and shopping malls. This development volume places California at the forefront of Western U.S. construction, followed by Arizona with over 3 million square feet and Nevada with about 1 million square feet slated for completion by year-end.<\/p>\n<p>Nationally, only Florida and Texas outpace California in expected storage construction. Florida is set to deliver nearly 10 million square feet in 2025, and Texas follows with over 6 million. Driven by <a href=\"https:\/\/www.storagecafe.com\/blog\/us-interstate-migration-trends\/\">high net migration<\/a>, these states are experiencing corresponding spikes in demand and construction activity.<\/p>\n<p><iframe id=\"datawrapper-chart-Hr7Xj\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Top States for Projected Self-Storage Construction in 2025\" src=\"https:\/\/datawrapper.dwcdn.net\/Hr7Xj\/1\/\" height=\"1165\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}(); <\/p>\n<p><\/script><\/p>\n<h2>SoCal expected to build most of CA\u2019s new 2025 self storage, with concentrations in LA metro and Inland Empire<\/h2>\n<p>California\u2019s 2025 pipeline of 4.9 million square feet will be primarily built in Southern California, with heavy concentration in the LA metro area and Inland Empire, both notably undersupplied relative to population.<\/p>\n<p><iframe id=\"datawrapper-chart-7sDgy\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Top California Cities by Projected Self Storage Construction in 2025\" src=\"https:\/\/datawrapper.dwcdn.net\/7sDgy\/1\/\" height=\"1206\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();\n<\/script><\/p>\n<p>Gardena in the LA metro area tops the state\u2019s list with 219,000 square feet expected by 2025, followed by Los Angeles proper with nearly 200,000 and Orange with 100,000 square feet. All three cities offer fewer than 2.3 square feet per capita, underscoring the urgency of new supply. Only the city of <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/los-angeles\/\" target=\"_blank\" rel=\"noopener\">Los Angeles<\/a>\u00a0 has seen significant past construction\u2014195,000 square feet in 2024 and over 335,000 in 2023.<\/p>\n<p>Continuous construction is helping to address the local need for self storage as apartments in Los Angeles average below 700 square feet, about 200 square feet smaller than the national average. That\u2019s because <a href=\"https:\/\/www.latimes.com\/opinion\/story\/2023-08-27\/california-rent-los-angeles-housing-density\" target=\"_blank\" rel=\"noopener\">housing demand is pushing the Los Angeles to build for density<\/a>, prompting an increased need for self storage to make up for the smaller living spaces.<\/p>\n<p>With undersupply pervasive across the LA metro, <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/lancaster\/\" target=\"_blank\" rel=\"noopener\">Lancaster<\/a> stands out as an exception within the LA metro, offering 9.3 square feet per capita, and is set to add over 80,000 square feet in 2025. The city also had the highest population growth in the region, supporting its strong inventory. On the other end, Burbank holds just 1.6 square feet per capita but will see 73,000 square feet of new development by the end of 2025.<\/p>\n<p>Outside of LA, <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/sacramento\/\" target=\"_blank\" rel=\"noopener\">Sacramento<\/a> ranks second in the state for new supply, with over 205,000 square feet planned. The city currently offers 4.9 square feet per capita, and has seen 7% population growth in the past five years, underscoring 2025\u2019s forecasted development. <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/rancho-cordova\/\" target=\"_blank\" rel=\"noopener\">Rancho Cordova<\/a>, part of the same metro area, will receive 89,000 square feet, and while better supplied at 6.7 square feet per capita, its 12% population increase is helping sustain demand.<\/p>\n<p>The Inland Empire cities are also hard at work to provide extra storage in 2025, as a combined low inventory relative to population and increases in the number of residents are contributing to the growth of self storage. Indo is expected to deliver an impressive an impressive 150,000 square feet of storage space, followed by <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/yucaipa\/\">Yucaipa<\/a> with almost 125,000 square feet of storage space. Local population increased over 2% in both cities for the past five years, further supporting demand for self storage.<\/p>\n<h2>Double-digits increases registered for street rates across 62% of CA cities<\/h2>\n<p>While national trends show a cooling in <a href=\"https:\/\/www.storagecafe.com\/self-storage-industry-statistics\/\" target=\"_blank\" rel=\"noopener\">storage rent prices<\/a>, California is moving in the opposite direction. Street rates have increased in 62% of California cities, with 8% of those cities experiencing double-digit gains. The Inland Empire is at the forefront of this trend, with 36 cities reporting rent hikes.<\/p>\n<p>Embed code: <iframe id=\"datawrapper-chart-KW2Zv\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"California\u2019s Cities With the Fastest-Growing Self Storage Prices\" src=\"https:\/\/datawrapper.dwcdn.net\/KW2Zv\/1\/\" height=\"1043\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();\n<\/script><\/p>\n<p><em>\u201cRising street rates, especially in undersupplied areas, highlight the persistent demand driven by smaller living spaces, remote work, and evolving lifestyles,\u201d<\/em> said Maghear. <em>\u201cRoughly 81% of cities with rising rents fall below the national per capita storage benchmark, and in 16% of those, inventory is under 1 square foot per resident.\u201d<\/em><\/p>\n<p>In Central California, <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/templeton\/\" target=\"_blank\" rel=\"noopener\">Templeton<\/a> in the San Luis Obispo metro area recorded the steepest annual increase, with rents jumping 34% year-over-year. A typical unit now rents for $224 per month. The city\u2019s 8% population growth significantly contributed to the spike. Elsewhere in the metro area, rent increases were modest\u2014generally around or below 3% year-over-year.<\/p>\n<p><a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/dinuba\/\" target=\"_blank\" rel=\"noopener\">Dinuba<\/a>, part of the Visalia metro area, ranked second with a 29% year-over-year increase. Its limited storage supply\u2014just 4 square feet per capita\u2014and a 4% population uptick over the past five years helped push prices higher. In contrast, Tulare, which has a more balanced supply of 7.3 square feet per capita, saw a more tempered 2.2% rise despite 11% population growth.<\/p>\n<p>In Southern California, the Inland Empire stands out, with 36 cities experiencing rent increases, seven of which were in the double digits. Most of these cities have low storage supply per capita, with the exception of<a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/lucerne-valley\/\" target=\"_blank\" rel=\"noopener\"> Lucerne Valley<\/a>, which offers a substantial 26.4 square feet per resident. The area\u2019s 14% population growth over five years created strong conditions for rent increases. Notably, <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/loma-linda\/\" target=\"_blank\" rel=\"noopener\">Loma Linda<\/a> rents surged 27.8%, followed by Mentone at 22.9%.<\/p>\n<p>In the neighboring Los Angeles metro, 74 cities reported rising rents. The most significant hikes\u2014mostly double-digit\u2014increases were concentrated in the<a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/greater-los-angeles\/san-gabriel-valley\/\" target=\"_blank\" rel=\"noopener\"> San Gabriel Valley<\/a>, east of Downtown LA, where storage supply is often below 2 square feet per capita. Generally, cities across the LA metro with rent growth are undersupplied. One exception is Lancaster, which has 9.3 square feet per resident. Even so, its 9% population growth helped push rents higher.<\/p>\n<h2>Most street rate decreases found in dense urban areas<\/h2>\n<p>Street rates fell in about one-third of California cities, mostly concentrated in LA, Inland Empire, Sacramento, San Diego, and San Francisco metro areas.<\/p>\n<p><iframe id=\"datawrapper-chart-XWq8k\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Californian Cities With Sharpest Street Rate Drops\" src=\"https:\/\/datawrapper.dwcdn.net\/XWq8k\/1\/\" height=\"1060\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();\n<\/script><\/p>\n<p>The LA metro dominates, with 24 cities with rent drops, particularly in East and Southeast LA suburbs. Most of them saw their population shrink in the past years, which weakened demand. <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/bell-gardens\/\" target=\"_blank\" rel=\"noopener\">Bell Gardens<\/a> led with a 25.5% decline, tied to an 8% population loss over five years. The average monthly rate for Bell Garden storage dropped to $151 in June 2025. <a href=\"https:\/\/www.rentcafe.com\/storage-units\/us\/ca\/commerce\/\" target=\"_blank\" rel=\"noopener\">Commerce<\/a> and Westlake also saw 6% population declines, with corresponding rent drops of 7.4% and 5.3% respectively.<\/p>\n<p>In Sacramento, Tahoe Vista saw a 19.7% rent drop, linked to a 9% population decline. As a result, Tahoe Vista units now rent for $190\/month. On the lower end \u2014Auburn, Shingle Springs, and South Lake Tahoe\u2014had modest 1% declines, also tied to population losses. Notably, Auburn has 16.8 square feet per capita\u2014well above national benchmarks, while South Lake Tahoe offers 9.7 square feet, contributing to price softening. No new construction is planned in any Sacramento-area city for 2025.<\/p>\n<p>In the Inland Empire, rent declines stem from various causes: population loss, high inventory, or limited demand in resort towns. Chino Hills rents fell 14.6%, now averaging $211\/month. La Quinta, a resort city, dropped 8.9%, aided by a 6% population dip. Blythe and Palm Springs both lost more than 5% of their populations, with inventory exceeding 9 square feet per capita, both factors driving down rents.<\/p>\n<p><iframe id=\"datawrapper-chart-G6yz8\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"California Cities Ranked by 2025 Estimated New Self-Storage Supply\" src=\"https:\/\/datawrapper.dwcdn.net\/G6yz8\/2\/\" height=\"1437\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}})}();<\/script><\/p>\n<p>California\u2019s self storage market remains fragmented and nuanced, shaped by uneven development, affordability challenges, and shifting demographics. Underserved cities are expected to see continued construction as the industry adapts to meet rising and localized demand in this dynamic landscape.<\/p>\n<h2>Expert Opinions<\/h2>\n<p>To learn more about the self storage sector across California, we talked to experts in the field.<\/p>\n<h3>Chris Berg, Land Acquisition Specialist, <a href=\"https:\/\/abernatheydev.com\/about-us\/\" target=\"_blank\" rel=\"noopener\">Abernathey Holdings<\/a> <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-142266 alignright\" src=\"https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Chris-Berg-headshot.jpg?w=300\" alt=\"Chris Berg headshot\" width=\"300\" height=\"310\" srcset=\"https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Chris-Berg-headshot.jpg 300w, https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Chris-Berg-headshot.jpg?resize=150,155 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/h3>\n<p><strong>What&#8217;s driving self storage demand in California right now?<\/strong><\/p>\n<p>It is very expensive to live in California, and there is a big discrepancy between the costs to buy a home vs rent in CA.\u202f Typically renters have less space, so that tends to increase need\/demand for storage.<\/p>\n<p><strong>Where in California is self storage development most active?<\/strong><\/p>\n<p>Development is HARD in California, and the most development I am seeing\/hearing about is in Los Angeles and Orange County.\u202f I think the REITs really like these areas. San Francisco is great too, and just really difficult to find land that works and that will allow for storage. If you can find it\/be creative then you will more than likely have a great asset.<\/p>\n<p><strong>What&#8217;s your outlook on self storage supply and demand in California?<\/strong><\/p>\n<p>San Francisco is actually seeing a lot of in-migration right now due to the AI boom.\u202f Los Angeles has the World Cup in 2026, Super Bowl in 2027 and the Olympics in 2028.\u202f They recently changed the rules around <a href=\"https:\/\/lci.ca.gov\/ceqa\/\">CEQA<\/a>.\u202f So if that can help developers build more housing, begin to drive down costs, I see a very strong demand for storage in CA.\u202f It has softened a bit in Sacramento, and I think that is because a lot of supply has come on line as of late.\u202f I see that changing in the next few years.<\/p>\n<h3>Albert Allen, VP of Operations at <a href=\"https:\/\/justselfstorage.com\/\" target=\"_blank\" rel=\"noopener\">JustStorage<\/a><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-142267 alignright\" src=\"https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Albert-Allen-headshot.jpg?w=300\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Albert-Allen-headshot.jpg 300w, https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Albert-Allen-headshot.jpg?resize=150,150 150w, https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2025\/08\/Albert-Allen-headshot.jpg?resize=96,96 96w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/h3>\n<p><strong>What&#8217;s driving self storage demand in California right now?<\/strong><\/p>\n<p>We\u2019re still seeing the effects of a softer revenue environment, so operators in California have to be careful with pricing and lean on smart promotions to convert leads. There\u2019s also a watchful eye on potential legislation like SB 709, which could cap annual rent increases for storage units. If that passes, it could shift how operators approach pricing and demand management.<\/p>\n<p><strong>Where in California is self storage development most active?<\/strong><\/p>\n<p>Sacramento and the broader Central Valley are still hot spots. They\u2019ve got a good mix of affordability, in-migration from the Bay Area, and more workable land costs, which makes new projects pencil out better. On the flip side, some Southern California cities are pumping the brakes. Places like Alhambra have even put multi-year pauses on new storage while they rework zoning rules, so developers are looking for friendlier cities with clearer paths to approval.<\/p>\n<p><strong>What&#8217;s your outlook on self storage supply and demand in California?<\/strong><\/p>\n<p>In the short term, the pipeline is slowing down, which should help stabilize occupancy and pricing across California\u2014especially in areas that were feeling overbuilt a couple of years ago. If SB 709 or local rent caps move forward, operators may focus more on keeping units full and growing ancillary revenue rather than relying on frequent rent bumps.<\/p>\n<h2>Methodology<\/h2>\n<p><em>This analysis was conducted by <\/em><a href=\"https:\/\/www.rentcafe.com\/self-storage-near-me\/\" target=\"_blank\" rel=\"noopener\"><em>RentCafe\u2019<\/em><\/a><em>s Self Storage division, which aims to capture the pulse of the self storage market and provide consumers with actionable insights to support informed storage decisions.<\/em><\/p>\n<p><em>This report considers projected self storage construction in California in 2025. For comparison purposes, we\u2019ve also included data for Western states and a few extra states where self storage inventory and forecasted construction in 2025 are high.<\/em><\/p>\n<p><em>For self storage rates, we\u2019ve included cities with an active self storage inventory of at least 10 unit.\u00a0<\/em><\/p>\n<p><em>For data on population changes, we\u2019ve turned to the U.S. Census (2018-2023 dataset). <\/em><\/p>\n<p><em>Data on self storage street rates and construction estimates for 2025 came from our sister division\u00a0<\/em><a href=\"https:\/\/www.yardimatrix.com\/\"><em>Yardi Matrix<\/em><\/a><em>, 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.<\/em><\/p>\n<h2>Fair use and distribution<\/h2>\n<p><em>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 it may change due to external factors.<\/em><\/p>\n<p><em>We permit the distribution of this content, provided that proper attribution is given to \u201cRentCafe Self Storage\u201d with a link back to the research study.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>California leads the Western U.S. in projected self storage construction for 2025, with approximately 4.9 million square feet of new space planned \u2013 trailing only Florida and Texas nationwide. The bulk of development is concentrated in Southern California, particularly in Los Angeles and the Inland Empire, where current supply per capita falls short of the&hellip;<\/p>\n","protected":false},"author":171,"featured_media":132842,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25090],"tags":[],"class_list":["post-142228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-storage","gallery-content-unit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California Keeps Up Self Storage Construction in 2025<\/title>\n<meta name=\"description\" content=\"California is projected to add over 4.9 million square feet of self storage in 2025, slightly outpacing 2024 construction levels.\" 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