Gradual recovery projected as demand continues to constrain advertised rate growth
SANTA BARBARA, Calif., Jan. 27, 2026 – The U.S. self storage market begins 2026 with demand remaining weak from continuing pressure on rents, occupancy and revenues. How these trends will play out over the year is the focus of a new national report from Yardi® Matrix.
Although national advertised rents increased 0.3% in December 2025, the pace represents a slowdown from the 0.6% increases in both October and November. December rent growth concentrated in metros such as New York City and its suburbs, along with Boston and Washington, D.C., where population growth and rising multifamily rents continue to spur demand.
The report projects that the self storage market’s recovery in 2026 “will be gradual and uneven [and] favoring markets with low supply and improving housing conditions.”
The cautious tone permeating the industry reflects “sustained weakness in self storage demand driven by historically low home sales and supply pressure in select markets and submarkets,” the report notes.
On a positive note, debt and equity remain plentiful for experienced investors and operators, although deal flow has been constrained by loan extensions and a surge in bridge lending. Investors are adopting “more conservative underwriting assumptions around rent growth, lease-up timelines and exit cap rates,” the report says.
Get more insight into the supply pipeline, demand constraints and more in the Yardi Matrix National Self Storage Report for January 2026, which draws from 2,846 properties in various stages of development. Yardi Matrix also maintains operational profiles for 32,266 completed U.S. self storage facilities.
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, single-family rentals/build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land 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.
Add Comment