The U.S. self-storage sector is navigating a challenging landscape as 2026 unfolds, with asking rents continuing a downward trajectory amid soft demand and highly uneven regional supply pipelines.
According to newly released data from Yardi Matrix, year-over-year advertised rates for self-storage units dropped 1.1% in February. This decline pushed the national average rent down to $16.10 per square foot across all unit sizes and types. The downturn was experienced across unit types, with non-climate-controlled units falling 1.2% on the year and climate-controlled unit rates decreasing 1%.
Month-over-month advertised rates also declined 0.3% in February on a national level, representing a pullback that is slightly steeper than the flat seasonal pattern typically observed at this time of year. At the metro level, advertised rates fell month over month in 24 of the top 30 metros.
While a slowdown in customer move-outs has offered modest stabilization for existing revenue, sluggish new move-in activity continues to drag on the sector’s overall recovery. Operators are increasingly competing for a limited pool of new demand by offering lower move-in rates.
Major self-storage real estate investment trusts reflect this cooling momentum. After pushing rates more aggressively at the start of last year, REITs have shifted to a much more cautious approach as move-in activity continues to trail historical averages.
Advertised rents for REITs fell 2.1% year over year in February. Given the uncertain demand outlook, most operators are issuing cautious guidance for 2026, anticipating revenue growth to remain flat to slightly negative.
The Yardi Matrix report also highlights a stark geographic divide driving the sector’s performance, as recovery continues to depend heavily on local supply conditions.
Heavily supplied Sun Belt metros are facing intense pressure. Markets such as Atlanta, southwest Florida (Sarasota-Cape Coral), Orlando, Fla., Las Vegas and Charlotte, N.C., continue to grapple with elevated levels of recent supply, contributing to ongoing advertised rate declines.
Conversely, areas with constrained new supply are holding their ground. Markets like Boston, Chicago and Minneapolis have remained comparatively stable.
Boston, for instance, has shown greater rate stability as its new supply pipeline has declined. Los Angeles was one of only two top metros to record positive month-over-month rate growth in February (up 0.2%), supported by a relatively constrained supply environment and emergency restrictions tied to wildfire declarations that capped in-place rent increases.
Looking ahead, new construction will remain a critical factor in market-level performance. At the end of February, approximately 48.4 million net rentable square feet of self-storage space were under construction nationwide, representing 2.4% of existing inventory. Markets with the most construction activity, such as the Texas cities of Austin and Houston, could encounter intensified supply-related headwinds in the coming quarters, particularly if demand does not increase.
