Self-storage fundamentals are stabilizing entering 2026, supported by firming rents, slowing construction and durable demand drivers, even as broader economic conditions remain uncertain, according to Marcus & Millichap. Labor market growth is expected to stay muted, with hiring focused on replacement rather than expansion, while high living costs and declining immigration continue to weigh on household formation and mobility.
Despite these headwinds, demographic trends — particularly growth in the 65-plus population and lifestyle-driven demand from younger renters — are sustaining storage utilization. Operators, especially REITs, have relied on discounting to maintain occupancy, though improving street rates in late 2025 have begun to support stabilized rent growth.
Capital remains available for the sector, with lenders favoring self-storage’s low capital expenditure needs and stable cash flows, while nonbank lenders continue to play a larger role in financi
