Self Storage Market Slowdown Marks Early 2026

Rates Ease at 2026 Start

Yardi Matrix reports that the self storage market entered 2026 on a softer note. National asking rents for self storage averaged $16.27 PSF in January, down 0.2% compared to the same month in 2025. Combined non-climate-controlled unit rates declined 0.5% year-over-year, while climate-controlled units saw a 0.2% uptick.

Among the 30 largest US metros, just six posted annual gains for non-climate-controlled rents, while 13 recorded increases for climate-controlled units. The bulk of markets tracked showed stagnant or sliding rates as the sector adjusts to normalized post-pandemic demand patterns.

Development Pipeline Retreats

The national self storage pipeline registered a small monthly decrease in January, accounting for 2.5% of total existing stock. About 50.4M net rentable square feet were under construction, with overall development cooling down from late 2025, a trend that aligns with recent projections calling for new supply growth to moderate as developers respond to softer rent performance and elevated construction costs.

Sarasota-Cape Coral remained the most active metro for new supply, with 7.9% of existing inventory under construction. Orlando and San Antonio also posted above-average pipeline levels. In contrast, markets like Denver and Portland held development well below the national benchmark at just 0.6% and 0.3%, respectively.