Are self storage rental rates recovering?

The rate story is not all bad, but it is not a straight-line recovery either.

From Q4 2024 to Q2 2025, rental rates increased across all unit sizes and climate types. That suggests some pricing power may be returning. But year over year, the data still showed rental rates down 1.61 percent for non-climate-controlled units and down 2.63 percent for climate-controlled units. The key takeaway: near-term improvement does not erase the broader reset from pandemic-era pricing. In some markets- primary markets for the most part- rental rates increased 7% month over month during the pandemic. That meteoric increase in rates was never going to be sustainable no matter the inflationary conditions. Buyers that bought based on those financials are now in the midst of a rude awakening as interest rates maintain elevated levels and expenses continue to rise. Investors should model modest growth, monitor concessions, and understand whether a market is improving because demand is returning or because operators finally stopped cutting rates.