Self Storage Performance Rises In Midwest Markets

Self storage shows signs of recovery as Midwest markets like Chicago lead in rent growth amid stabilizing national trends.

July 17, 2025

Jordan B.

Self storage rents stabilize, with national rates down just 0.1% YoY and monthly gains of 0.7% in June.
Chicago leads in rent growth, up 2.9% YoY, driven by limited new supply and strong housing demand.
Las Vegas sees highest construction activity, with 6.6% of inventory under development.
Sun Belt markets struggle, including Austin and San Diego, due to oversupply and slower in-migration.

Key Takeaways

A Market Rebound Takes Shape

The US self storage sector is showing signs of stabilization after over two years of uneven recovery, reports Yardi Matrix. National average street rates dipped just 0.1% YoY in June to $16.90 PSF, while sequential monthly rates rose 0.7%—a notable improvement over prior years. REITs led the rebound, with same-store rents rising 1.3% YoY across stabilized assets.

Line chart tracking national average street rates per square foot for climate-controlled and non-climate-controlled storage units from May 2023 to July 2025. Climate-controlled rates show a modest upward trend in 2025.

Midwest Momentum

Chicago led all major markets with a 2.9% annual rate increase, thanks to constrained new supply and strong multifamily fundamentals. Minneapolis also showed renewed strength, with rents up 1.3% year-over-year. New development dropped sharply, from over 20% of inventory in 2022 to just 4.1% today.

Bar chart showing June 2025 year-over-year rent changes for non-climate-controlled and climate-controlled storage units across major U.S. metros. Chicago, Portland, and Washington DC show strong gains, while Austin, San Diego, and Las Vegas report sharp declines.

Construction Still Active, But Concentrated

Nationwide, 53.4M SF of new space was under construction in June, representing 2.7% of existing inventory. Las Vegas led all metros with 6.6% of inventory under construction, followed by Phoenix and Orlando. Notably, San Antonio posted the biggest month-over-month surge in new development, likely in response to local flood-related demand.

Trouble Spots Persist

Sun Belt markets such as Austin (-3.1%), San Diego (-3.2%), and Las Vegas (-2.5%) saw the steepest rent declines. Elevated supply and waning migration trends drove the drop. Charlotte and Denver also struggled with divergent pressures: while Charlotte faces oversupply (15.3% of inventory built in 3 years), Denver’s slowdown is tied to cooling housing demand.

Outlook

Investor interest remains strong despite muted transaction volumes, as interest rates and bid-ask spreads keep deal flow sluggish. Yet, with REITs raising rents and supply pipelines moderating, signs of a more balanced market are emerging. Yardi Matrix reports that nearly half of tracked metros posted YoY rent gains for climate-controlled units—a potential turning point for the sector.