Operators are feeling the impact of softening demand, rising price sensitivity, and an uptick in delinquencies. This is a moment to revisit fundamentals, to double down on what’s working, and to make strategic changes that set you up for long-term success.
Economic Environment:
- Uptick in Core Inflation: Continued financial pressure on consumers, tenants more price sensitive.
- Interest Rates Steady: The Federal Reserve is holding interest rates steady at 5.25 to 5.5% creating a wait-and-see effect on economic activity.
- Home Sales Slump: Existing home sales dropped 4.5% in Q1 and home prices continue to climb as inventory stacks up.
| Economic Headwinds | Economic Tailwinds |
| Steel and lumber costs rising | Storage industry projected at annual growth rate of 6% over 10 years |
| Storage construction starts down 20% over 2 years | Ongoing M&A activity |
| Increasing severity of natural disasters | High usage rate of self-storage |
Self-Storage Industry Trends
- Search demand is down overall but still active
- Tenants are more price sensitive
- Occupancy is down but still slightly higher than pre-pandemic levels
Consumer Demand Trends:
- About 25% of Americans say they are planning to move in the next 6-12 months
- 1 in 5 Americans dedicate 500 square feet of space or more of their homes to just storage
- 39% of Americans have converted a guest bedroom to storage room in the past year
- 74% of Americans reports stress or anxiety over clutter
- 16% of Americans have delayed selling their home due to clutter
Check out the: The Real Cost of Clutter Report
Decline in “Storage Near Me” Searches:
Searches for the term on Google have reached the lowest lowest point since 2020. This decline in demand is experienced by operators as:
- Slower foot traffic
- Longer lease up times
- More competition for every rental
Washington State demand is following national patterns:
- Tenant search demand in Washington has steadily declined since 2021
- Current activity is hovering near the lowest point in five years
- Seasonal upticks are softer than expected
Recommendation: Operators should double down on lead response, digital experience, and customer service to stay competitive
Performance Trends and Recommendations:
| Occupancy: Remains slightly above pre-pandemic levels. In the West, occupancy has hovering just above 80% since the pandemic boom | Recommendation: Stability—not growth—is the current play. Double down on operations, reducing churn, and making sure every available unit is priced and promoted with intent. In a flat market, efficiency wins. |
| Move-ins: Despite some seasonal fluctuations—move-ins have consistently outpaced move-outs, month over month. | Recommendation: Stay proactive. When move-in volumes dip, that’s your cue to ramp up outreach, optimize promos, and make sure your digital experience is as seamless as possible. |
| Rates: Rates climbed aggressively between 2020 and 2022, reaching highs around $120. But since then, they’ve dropped steadily—landing at just over $80 in Q1 of this year. | Recommendation: Adjust pricing strategies to match rate environment. That might mean being more tactical with discounts or leaning into dynamic pricing tools to remain competitive—especially if your market is experiencing slower lease-ups. |
| Washington State Rates: Street rates peaked at nearly $128 in Q3 of 2022 and have since fallen sharply. In Q1 of this year, the average dropped to just over $81. That’s a major correction and marks the lowest point in five years.
With slower migration into the region and demand cooling, operators are having to adjust pricing more aggressively just to stay in the game. |
Recommendation: Pricing discipline is crucial. It’s not just about dropping rates—it’s about knowing when to adjust, how to target specific units with promotions, and how to preserve value without racing to the bottom. |
Check out the Storable Q1 2025 Industry Pulse Report for more up to date stats on the self-storage industry.
5 Key Takeaways
- Tenant demand is at multi-year lows across the country.
- Recommendation: Employ dynamic pricing tools, optimize rates by unit type, discount with intent.
- Occupancy and rental rates at pre-pandemic levels.
- Recommendation: Focus on SEO, invest in paid ads during moving season, track cost per lead and conversions closely.
- Moving trends are generally stagnant but tenants are still shopping.
- Recommendation: Provide transparent pricing and flexible lease terms, streamline move-ins with online rentals, offer loyalty discounts for long-term commitments.
- Tenants are more price sensitive than in years past.
- Recommendation: Invest in operational efficiency, re-evaluate your tech stack, invest in remote management and automation solutions that lower overhead.
- Extended tenant delinquencies are on the rise.
- Recommendation: Automate reminders, offer payment plans, review auction cadence, and automate delinquency process with collections partner.
