Cautious Optimism Steers U.S. Self Storage, Yardi Matrix Reports

Investors eye potential for long-term gains as sector navigates challenges

SANTA BARBARA, Calif., April 22, 2025 – The U.S. self storage industry moved into the year’s second quarter amid a mix of uncertainty, flat rate growth and long-term optimism, according to a new national report from Yardi® Matrix.

Nationwide advertised rates fell 0.2% year-over-year in March 2025, marking an improvement over the -0.8% and -1.1% figures recorded in February and January, respectively. Development has slowed due to construction and financing hurdles, while regulatory issues and rising operational costs produce additional consternation. Meanwhile, lenders are cautious and bridge loan demand is surging as properties lease up slower than expected.

But despite these challenges, “optimism persists among seasoned investors positioning for long-term gains, with increased focus on disciplined capital deployment and strategic partnerships,” the report says, and “top public and private buyers remain active despite pricing challenges.”

In March, year-over-year same-store rates for non-climate-controlled units increased in 13 of the top 30 metros tracked by Yardi Matrix. Climate-controlled unit rates increased in 17 of the 30 metros compared to March 2024.

Construction activity remained steady in March, with 55 million net rentable square feet under construction across the nation. The pipeline, which represented 2.9% of existing stock, remained unchanged month-over-month.

Read the full report.

Yardi Matrix tracks 3,191 self storage properties in various stages of development nationally, including 734 under construction, 2,046 planned and 411 prospective properties, and maintains operational profiles for 30,445 completed U.S. self storage facilities for a total data set of 33,636.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.