Why 2025 Marks a New Boom for Self-Storage

Why 2025 Marks a New Boom for Self-Storage

The self-storage industry is entering a pivotal phase in 2025, with demand set to rebound strongly even as new supply slows. Despite short-term challenges like reduced home-moving and limited new facility builds, core long-term trends are fuelling optimism. Here’s why the storage sector—especially local providers like Easy Access Self Storage—is poised for growth and greater relevance in the years ahead.

1. Demand Remains Strong Amid Market Cycles

According to industry analyst Cory Sylvester, although there was a 10% decline in storage demand tied to moving activity, overall demand remains solid—driven by space constraints and commercial needs. The primary factors influencing change include:

• Moving-related demand (≈50%) dipping due to high mortgage rates (6–7%) and cautious consumer behavior.
• Space needs (≈33%) driven by downsizing, remote working, and small businesses.
• Commercial/residential usage (≈17%) from tradespeople, e-commerce sellers, and event planners.

As moving activity stabilised through late 2024, historical trends suggest a bounce back in the self-storage sector.

2. New Supply Has Slowed—Boosting Occupancy

Between 2022 and 2024, rising interest rates and construction costs caused many planned storage projects to be shelved development fell by more than half of its five-year average. With fewer new facilities opening, the balance between supply and demand has improved.

• National occupancy rates now exceed 90%, giving existing facilities pricing power.
• As competition eases, owners can raise rates without jeopardising occupancy—leading to better returns and stability.

3. Changing Living Patterns Fuel Long-Term Growth

Several secular shifts are driving storage demand independently of market cycles:

• Smaller homes: New build homes are on average 12% smaller than they were in 2016, meaning less in-home storage and more need for external units.
• Strong rental sector: Renters are 2–3 times more likely to use storage, demand is built-in.
• Urban densification: As living space shrinks, having offsite storage becomes essential for locals and homeowners alike.

4. Stabilising Rates and a Resilient Market

Though storage rates dropped slightly year-over-year in early 2025, they have rebounded month-over-month, signalling stabilisation.

• Advertised rates for a 10×10 unit are holding, with seasonal fluctuations but steady recovery.
• Rental revenue is improving, marking a positive uptick for 2025 .

5. A Rebel Sector: Typical Recession-Resistance

Self-storage has a reputation as a recession-resistant asset class—and for good reason.

• Occupancies over 90% during downturns signal strong underlying demand.
• In fact, during the 2008–2011 financial crisis, storage delivered 5.1% total returns, outperforming many sectors .

6. What This Means for Easy Access Self Storage

For local providers like Easy Access Self Storage, these market trends translate into opportunities for customers and owners alike:

Customers Enjoy:

• High security and occupancy ensure reliable service and peace of mind.
• Stable pricing with gradual, transparent rate increases tied to market demand.
• Rapid access to flexible space, as our units rarely sit empty for long.

Owners Benefit From:

• Ability to reinvest in facility improvements (e.g. drive‑up units, climate control).
• Enhanced revenue streams from occupancy and insurance add-ons.
• Confidence in long-term performance even amid broader economic pressures.

Key Takeaways & Outlook for 2025

With analysts projecting industry growth (6–7% CAGR in some forecasts), and a compelling case for operational strength even with rising interest rates, 2025 is shaping up to be a strong year for storage.

Why Now is a Great Time to Choose Easy Access Self Storage

If you’re a resident needing decluttering space, a business owner, or relocating home, now is the perfect time to access secure storage:

• High occupancy means better long-term care, not neglected or sold-off units.
• Growing demand ensures continued investment into facility upgrades.
• Lower national oversupply increases reliability and service consistency.
• Deep ties to Tameside, Stockport and Trafford mean we’re locally invested—and personally invested—in your satisfaction.

Final Thoughts

The self-storage market is marching toward a promising future. With a well-balanced mix of recovering demand, shrinking new supply, and resilient usage, 2025 is setting the stage for growth. Whether you’re downsizing, renovating, running a business, or just need a secure place for your valued belongings, Easy Access Self Storage is your local partner in a nationally strong sector.