Self Storage Market Trends Show Signs Of Stabilization In 2025

Self storage market stabilizes in 2025 as rents, valuations, and construction ease after post-pandemic investment surge.

September 15, 2025

Jordan B.

Self storage transaction volume reached $2.85B in H1 2025, largely in line with pre-pandemic levels and less than 1% above H1 2023.
Valuations continue to decline, with average prices falling 12% from their Q1 2023 peak of $174 PSF to $159 PSF in Q2 2025.
Cap rates have stabilized around 5.8%, with investors expecting little change over the next year amid rising concerns over interest rates and the housing market.

Key Takeaways

A Post-Surge Reset

The post-pandemic surge in self storage investments appears to have plateaued, per Cushman & Wakefield. The sector saw nearly $50B in transaction volume between 2020 and 2022. In H1 2025, activity reflects more normalized trends. These levels are more in line with the market prior to 2020. The $2.85B in volume recorded aligns closely with figures from H1 2023.

Chart showing U.S. self storage transaction volume from 2015 to Q2 2025, highlighting a peak in 2021–2022 followed by a return to pre-pandemic levels.

Value Compression

Valuations peaked at $174 PSF in Q1 2023 and have steadily declined for six consecutive quarters to $159 PSF in Q2 2025. The average price over the past nine quarters now sits at $152 PSF. Cushman & Wakefield’s Performance Index also showed a 7.9% YoY decline, with index values currently at 146.3.

Bar chart of self storage property prices per square foot from 2015 to Q2 2025, showing declines since the 2023 peak.

Cap Rates Hold Steady

Cap rates averaged 5.8% over the past six quarters, up from a record low of 5.0% in Q4 2022. Class A assets traded in the 5.0–5.5% range while Class B assets saw cap rates from 5.5–6.5%. More than half of survey respondents (56%) expect cap rates to remain unchanged through 2025.

Graph showing capitalization rates for self storage from 2015 to Q2 2025, with a low in 2022 and gradual rise since.

Bar graph comparing cap rate spreads between self storage and apartments from 2015 to Q2 2025, highlighting compression in recent years.

Rent Growth Slows

Average asking rents fell from the Q3 2022 high of $134/unit and now range from $124 to $132/unit, with a market average of $128. Despite softer net demand and financial pressures, tenant stay durations have remained steady. Some subregions, like the West, still command higher asking rents at $193/unit.

Line chart showing self storage occupancy trends by U.S. region from 2015 to Q2 2025, with stable rates near 90%.

Line chart of self storage asking rents per unit from 2015 to Q2 2025 across U.S. regions, showing post-COVID rent fluctuations.

Construction Taps The Brakes

Rising costs and limited debt availability have slowed new development. According to Dodge Pipeline, Q2 2025 saw a notable rise in self storage projects being placed on hold. This trend is expected to continue as developers face tighter financing conditions.

Outlook: Holding Pattern

Investor interest remains strong, with 65% of survey respondents expecting to be net buyers in the coming year. However, valuation concerns are rising. The top concerns are the slowing housing market, cited by 39%, and interest rates, noted by 35%. Rent growth is expected to be modest, with 52% of investors forecasting 0–3% increases over the next 12 months.

Why It Matters

The US self storage market is showing signs of maturity and normalization. Though no longer booming, it remains a resilient sector with stable fundamentals. With most investors expecting flat cap rates and moderate rent growth, the sector appears poised for steady—not spectacular—performance in the near term.