The self-storage industry in the United States experienced a shift in 2025, moving from rapid expansion to a more cautious approach. According to StorageCafe’s analysis, new deliveries across the nation decreased by 21% compared to the previous year. Developers focused on areas with high potential, where population changes and housing turnover are influencing local real estate markets.
Atlanta and Phoenix emerged as key markets for self-storage development, leading the country in new construction. Atlanta added 2.2 million square feet of self-storage space, while Phoenix was the only other city to exceed 2 million square feet among 13 metros that surpassed 1 million square feet of new storage space.
In both cities, inventory grew by approximately 4–5%, indicating controlled growth rather than an oversupply. Despite significant additions to their inventories, average street rates remained stable at around $120 per month in both locations. This stability suggests that the new spaces were absorbed without causing major disruptions in pricing.
Real Estate Investment Trust (REIT) ownership is substantial in these markets, with about 48% of Atlanta’s and 43% of Phoenix’s inventories under REIT control. This level of institutional investment has persisted even as construction activity slowed in other regions.
The full analysis can be accessed here.
Overall, the national trend shows a sector becoming more selective, with Atlanta and Phoenix continuing development while other areas scaled back.
