As we reach the midpoint of 2024, the self-storage industry continues to deal with weak demand and diminished pricing power. Typically the summer brings a surge of rentals for self-storage operators pushing prices upward. But with the housing market showing little signs of movement, the seasonal rush has barely materialized.
Reserved rates for self-storage units moved up 2.7% from the previous month in June, coming in at an average rental cost of $85.09 a month, according to Storable data. To put the current performance in perspective, the national average storage price increased between 4% and 8% from May to June over the last several years. Year-over-year, rates were 16.4% lower in June.
Of course, not all markets are the same. A handful of markets are bucking the trends, with some up more than 20% over last year’s pricing. Let’s take a closer look at these top performers:
Best Performing Markets YTD 2024
Storable looked at the top 200 most popular markets for self-storage rentals and calculated the average rental rate year to date through June for each, and compared to the same period in 2023. In our analysis, only 18 markets show positive average rental rate growth compared to last year:
| Market | Average Rate (YTD 2024) | Change from 2023 |
| Honolulu, HI | $138.88 | 21.9% |
| Ann Arbor, MI | $104.98 | 21.3% |
| Del Rey Oaks, CA | $204.43 | 16.8% |
| Shreveport, LA | $71.19 | 12.6% |
| Chula Vista, CA | $155.70 | 9.9% |
| Van Nuys, CA | $155.56 | 8.5% |
| Vista, CA | $121.26 | 6.4% |
| Rochester, NY | $95.06 | 4% |
| El Paso, TX | $82.47 | 3.8% |
| Chatsworth, CA | $159.25 | 3.5% |
| Kalamazoo, MI | $80.34 | 3% |
| Lansing, MI | $65.43 | 2.8% |
| Toledo, OH | $65.43 | 2.8% |
| Abilene, TX | $77.49 | 2% |
| Alexandria, VA | $110.14 | 0.9% |
| Baton Rouge, LA | $61.61 | 0.8% |
| Akron, OH | $69.86 | 0.6% |
| Harrisburg, PA | $78.21 | 0.5% |
The list represents a diverse mix of small to mid-sized markets, mostly Class B or C, that are outperforming for a range of reasons. For example, Honolulu shoots to the top of the pack as a high barrier-to-entry market that has seen little development over the years.
Some markets are seeing a housing resurgence, such as Lansing, where the number of homes sold in May was up more than 30% compared to the previous year. Others are simply holding steady.
What other factors might be at play? To better understand the possible underlying economics behind these top performing markets, see how each city falls into one or more of the following categories:
University Towns
The list includes three major college towns in Michigan: Ann Arbor (University of Michigan), Lansing (Michigan State University) and Kalamazoo (Western Michigan State University).
Honolulu, Rochester, El Paso, Toledo, Abilene, Baton Rouge, and Akron also have notable college or university presences.
Diverse Metropolitan Areas
Several markets are notable for their high rates of racial and ethnic diversity:
- Honolulu, HI: Highly diverse with significant Asian and Pacific Islander populations.
- El Paso, TX: Predominantly Hispanic population.
- Chula Vista, CA: Large Hispanic and Asian communities.
- Alexandria, VA: Diverse with a substantial African-American and Asian population.
Economic Hubs
These cities, predominantly in the Rust Belt, are known for industrial economic activity or unique economic profiles.
- Rochester, NY: Historically known for its manufacturing and now for education and health services.
- Baton Rouge, LA: Major industrial, petrochemical, and medical center.
- Akron, OH: Historically known as the “Rubber Capital of the World” for its tire manufacturing.
- Harrisburg, PA: The capital of Pennsylvania with a mix of government and industry jobs.
- Toledo, OH: Known for its industrial history, particularly in glass manufacturing, and now a hub for healthcare and education services.
Government and Military Sites
Four state capitals appear on the list, which often provide a solid base for government jobs and growth: Honolulu, Lansing, Baton Rouge, and Harrisburg.
Several cities also have significant military installations and related infrastructure. El Paso is home to Fort Bliss, one of the country’s largest military bases. Alexandria is located in close proximity to The Pentagon and Fort Belvoir. Abilene and Shreveport feature Air Force bases. Chula Vista is also located near the Naval Base San Diego and Naval Air Station North Island.
California Suburbs
Several California markets appear on the list. They are spread out throughout the state and represent a mix of population sizes. While not having much in common, they are primarily suburban locales with commuters working in Los Angeles and San Diego.
- Del Rey Oaks, CA: Small residential community in Monterey County.
- Vista, CA: Suburb of San Diego with a mix of residential and light industry.
- Van Nuys, CA: Neighborhood in the central San Fernando Valley region of Los Angeles.
- Chatsworth, CA: Residential neighborhood in the San Fernando Valley, Los Angeles.
- Chula Vista, CA: Located in San Diego County, it is a suburb of San Diego and serves as a residential area for people working in San Diego or nearby areas.
Boost Your Performance
While local market forces play a crucial role in self-storage facility performance, so does the savviness of the operator. Do you have all the tools you need to maximize revenue and increase efficiency so you can outperform the competition? Storable can help boost the performance of your storage business no matter where you are located. Reach out now to see everything Storable can do for you today.
