Self Storage Rates Dip in 90% of the Nation’s Biggest Cities

• National self storage street rates dropped by 3% year-over-year in January 2024
• About 90% of the country’s top 150 cities experienced self storage street rate decreases
• Hialeah, FL, tops the charts with double-digit price drops
• On the other hand, Rochester, NY, registers the most significant price increase, of 3.4%
• Las Vegas, NV, Philadelphia, PA, and San Antonio, TX, built the most self storage space in 2023.

In a trend that lasted for 16 months, the average price for storage units in the U.S. dropped 3% year-over-year in January. The national average monthly rate for a storage unit is now standing at $135.

(Note: Starting in January 2024, we changed the calculation methodology to include all unit sizes instead of rates for standard 10X10 non-climate-controlled units. See methodology.)

The rapid expansion of supply across the nation has outpaced changes in migration, population growth and housing markets, resulting in an oversupply situation. While concerns persist about the ability of demand to absorb the surplus, there's also a change in completion dynamics. Planned projects are experiencing delays, which may help the market gradually balance the excess inventory.

Across the 150 major cities in the country, 90% are experiencing declines in self storage prices. Even migration magnets in the Sunbelt, such as Orlando, FL, Phoenix, AZ and Las Vegas, NV, are still facing housing hurdles that directly impact the storage market.

Florida is leading price decreases nationwide, with Hialeah seeing double-digit drops

All major cities in Florida have seen price decreases, with Hialeah, FL, in the lead. Despite plateauing on a monthly basis, the average street rate in Hialeah reached $164, down 11.1% year-over-year. Orlando also witnessed a significant 6.3% year-over-year decrease, with self storage unit rentals now calling for $129 per mo. Tallahassee and Jacksonville, both displaying robust inventories above the national benchmark of 7 sq. ft. per capita, have experienced drops of 4% and 2.5%, respectively.

In Arizona, cities like Gilbert, Chandler, Tempe and Scottsdale are registering significant year-over-year price corrections, ranging from 10% in Gilbert to 7% in Scottsdale. Among these, Scottsdale boasts the highest self storage monthly rate at $191. Phoenix storage units now go for $121 monthly, down 5.4% y-o-y.

North Carolina is following the same trend across its major cities. Fayetteville, NC, where self storage per capita is at a high 11.29 sq. ft. per person, local rates have decreased 8.3% year-over-year price decrease. In Raleigh, local inventories clock in at 7.22 sq. ft. per capita, allowing the market to remain affordable. Storage units in Raleigh go for an average of $107, down 4.7% y-o-y. Durham is breaking patterns, with rent growth remaining positive year after year.

Low inventories, population growth among drivers behind self storage street rate increases in N.Y., CA cities

Among the 150 major cities in the U.S., 14 have experienced price increases. Rochester, NY, emerges as the frontrunner with the most substantial year-over-year hike in January 2024 – 3.4% – which put the average price of renting a storage unit in the city at $140. Buffalo, NY, also experienced a 2.5% uptick in self storage street rates, ranking third nationally in price gains. Both Rochester and Buffalo are undersupplied by industry standards, with Rochester at 3.26 square feet per capita and Buffalo at 1.75 square feet per capita. On top of that, Buffalo has seen consistent population growth recently, which puts even more pressure on an already low self storage inventory.

Bakersfield, CA, registers the second-highest year-over-year price increase among the nation's largest 150 cities by 2.8%. Currently, a self storage unit in Bakersfield rents for $97 per month. Despite Bakersfield's healthy self storage inventory, with nearly 9 square feet of space per capita, the city's consistent population growth fuels demand for this service. Bakersfield's population increased by a significant 8% over the past five years.

While not making it to the top 10 cities with the highest price increases, Honolulu, HI, maintains its status as the nation's most expensive self storage market. The average storage unit in Honolulu currently rents for about $306, compared to $304 a year prior. This evolution underlines the acute demand for self storage solutions in Honolulu, a city with only 2.8 square feet of storage space per capita.

Las Vegas, NV, tops the charts for self storage deliveries in 2023

Despite some economic headwinds in 2023 relating to the slowdown in home acquisition nationwide, as well as inflation, the self storage sector showed resilience and continued to add new inventory in most of the country's major cities.

Sunbelt cities, in particular, emerged as veritable powerhouses of development in the self storage sector – driving rents down in most cases. Migration patterns and job creation continue to favor many of the Southern cities heavily, creating demand that has the potential to absorb the newly created inventory.

Most of the top 10 cities with the highest volumes of new construction in 2023 are located in the region. Las Vegas, NV, ranks first, adding over 592K square feet of new space in 2023, representing a 62% year-over-year increase in new supply. Neighboring North Las Vegas followed the same trend, building 286K square feet of rentable storage space last year, or an impressive 12% of its total inventory.

Las Vegas registered a moderate 1.5% street rate decrease year-over-year. At the same time, North Las Vegas saw prices mainly stagnate over the past year, and the demand for self storage in the area is expected to persist as both cities are experiencing population growth. Las Vegas witnessed an increase of 4% in its residents over the past five years, while North Las Vegas experienced a whopping 13% population surge.

The only East Coast city to make it to the top 10 cities for self storage deliveries in 2023, Philadelphia, PA, succeeded in adding almost 461K square feet of rentable space to its local inventory, tripling the deliveries registered a year prior. Sustained self storage construction is welcomed in Philadelphia, an undersupplied market with only 3 square feet of space per capita, significantly under the national benchmark.

San Antonio, TX, ranks third in new self storage construction delivered in 2023, adding 395K square feet of new space, much in line with the previous year's level of new construction. Houston is the second Texan city in the top 10 self storage deliveries of 2023, with 365K square feet of rentable space built in 2023, representing a 39% year-over-year increase in new construction.

Self storage construction in Los Angeles, CA, also picked up pace in 2023, with 335K square feet of rentable self storage space added to the local inventory. The 2023 deliveries are more than double compared to 2022. However, despite the uptick in self storage deliveries, Los Angeles remains one of the most undersupplied markets in the country, with an inventory of only 1.8 square feet of space per capita.

Top Cities for 2023 Self Storage Deliveries

#	City	2023 Completed New Supply (sq. ft.)	2023 New Supply as % of Inventory	Current Sq. Ft. per Capita
1	Las Vegas, NV	592,190	4%	7.39
2	Philadelphia, PA	460,647	7%	3.11
3	San Antonio, TX	395,044	2%	8.82
4	Orlando, FL	372,413	4%	6.74
5	Houston, TX	365,371	1%	6.75
6	Tucson, AZ	355,277	5%	8.16
7	Los Angeles, CA	335,393	5%	1.8
8	Tallahassee, FL	323,629	12%	10.84
9	Memphis, TN	306,728	5%	7.96
10	Lexington, KY	290,645	12%	8.01
11	North Las Vegas, NV	286,414	12%	4.35
12	Lubbock, TX	259,141	6%	16.02
13	Miami, FL	258,212	3%	3.68
14	Mobile, AL	257,636	9%	9.98
15	Charlotte, NC	255,475	3%	7.08
16	Fort Worth, TX	247,818	3%	6.05
17	Knoxville, TN	246,314	6%	9.57
18	Baltimore, MD	240,721	5%	3.62
19	Phoenix, AZ	238,573	2%	5.11
20	Yonkers, NY	228,100	24%	1.93
21	Reno, NV	212,888	4%	14.54
22	Garland, TX	199,752	9%	3.83
23	Scottsdale, AZ	194,629	7%	8.02
24	Jacksonville, FL	188,705	2%	9.34
25	Tulsa, OK	188,251	4%	8.98
26	Omaha, NE	186,378	4%	7.06
27	Providence, RI	184,589	29%	1.61
28	Fayetteville, NC	183,838	6%	11.29
29	Greensboro, NC	179,876	5%	10.29
30	Henderson, NV	179,484	5%	6.24
31	Columbus, OH	179,134	3%	4.37
32	Gilbert, AZ	171,733	7%	3.84
33	Kansas City, MO	171,502	5%	4.21
34	Louisville, KY	170,998	3%	7.53
35	Plano, TX	170,110	5%	5.51
36	Austin, TX	168,398	2%	7.98
37	Salt Lake City, UT	164,919	6%	3.34
38	Amarillo, TX	158,473	7%	11.6
39	Des Moines, IA	156,777	10%	4.89
40	Toledo, OH	154,420	9%	4.49
41	Winston-Salem, NC	139,136	6%	7.03
42	Indianapolis, IN	136,560	2%	6.8
43	Worcester, MA	136,062	17%	2.94
44	Huntsville, AL	127,575	5%	10.01
45	Peoria, AZ	125,213	7%	4.45
46	Chicago, IL	123,293	1%	3.34
47	Virginia Beach, VA	115,226	2%	10.58
48	Santa Clarita, CA	114,367	13%	3.93
49	Vancouver, WA	112,024	4%	8.19
50	Sacramento, CA	111,693	2%	4.9
51	Colorado Springs, CO	109,869	2%	10.83
52	Spokane, WA	107,746	4%	7.26
53	Boise, ID	106,811	3%	11.33
54	Cape Coral, FL	106,784	6%	7.14
55	San Diego, CA	102,750	2%	3.92
56	Chattanooga, TN	97,517	4%	8.38
57	Seattle, WA	97,416	3%	3.9
58	Minneapolis, MN	96,237	5%	2.03
59	Irvine, CA	94,779	3%	5.25
60	Oakland, CA	92,368	6%	2.44
61	Elk Grove, CA	91,773	8%	3.93
62	Spring Valley, NV	90,880	44%	0.65
63	Stockton, CA	89,230	4%	6.22
64	Aurora, IL	89,039	12%	2.48
65	Baton Rouge, LA	87,082	2%	11.02
66	Brownsville, TX	83,425	9%	5.09
67	Columbus, GA	81,990	3%	11.21
68	Raleigh, NC	81,000	2%	7.22
69	Overland Park, KS	80,075	7%	3.01
70	Durham, NC	77,524	3%	8.96
71	Atlanta, GA	76,461	1%	4.45
72	Aurora, CO	71,678	2%	4.15
73	Newport News, VA	71,274	5%	5.99
74	Akron, OH	71,091	4%	4.77
75	Salem, OR	69,099	3%	8.23
76	Cary, NC	68,143	6%	4.69
77	Madison, WI	64,647	4%	4.16
78	Albuquerque, NM	60,000	1%	7.74
79	Anchorage, AK	59,755	4%	6.47
80	Corpus Christi, TX	59,650	2%	11.72
81	Pittsburgh, PA	58,738	2%	3.46
82	Portland, OR	53,300	1%	4.3
83	Wichita, KS	52,136	2%	6.73
84	Grand Rapids, MI	48,587	3%	3.73
85	McKinney, TX	46,158	2%	7.61
86	Birmingham, AL	46,110	1%	7.1
87	Lincoln, NE	44,412	2%	6.42
88	Newark, NJ	37,425	5%	0.84
89	Modesto, CA	36,844	2%	6.11
90	Rochester, NY	30,257	2%	3.26
91	Eugene, OR	13,054	1%	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

Methodology

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

This report analyzes self storage street rates and construction deliveries in January 2024.

We included the most populous 150 cities with an active self storage inventory of at least ten units. The analysis only encompasses same-store properties that have had a market presence for the previous 12 months.

The self storage street rate is calculated as an average, based on the weighted averages of the rates for all storage unit sizes, both non-climate-controlled and climate-controlled.

We calculated population growth over a five-year interval (2017 to 2022) using data from the U.S. Census.

Data on self storage street rates and 2023 construction deliveries 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 to this page.