Market Overview

In December 2025, the North American self-storage market remained active but increasingly shaped by a more cautious economic backdrop of elevated interest rates and disciplined capital markets. New construction continued to be a defining theme: the U.S. had 3,269 projects underway, representing roughly a 6.5% expansion of existing supply, while Canada, though smaller with 3,616 total stores, saw 146 projects in the pipeline, expanding supply by 7.4%. At the same time, higher financing costs encouraged a more cautious approach to underwriting that prioritized market fundamentals, with operators and investors closely tracking pricing trends, absorption, and supply pressure across local markets as the cycle moved toward a more balanced phase heading into 2026.

Pricing Trends

Pricing trends across North America reflected a broad, modest easing in advertised street rates, with walk-in pricing down at a similar pace in both the U.S. (-1.30% YoY) and Canada (-1.67% YoY). Online dynamics, however, diverged more meaningfully: U.S. online rates declined 2.10% YoY, signaling continued promotional pressure, while Canada’s online rates were essentially flat to slight positive (+0.39%), pointing to comparatively steadier digital pricing conditions.

U.S. Market

As 2025 closed, U.S. self-storage faced continued pricing pressure as average YoY walk-in and online rates declined between 1.30% and 2.10%, respectively. The softening is primarily attributed to a stagnant housing market, which stifled residential moves that typically drive storage demand. This lack of demand was compounded by a supply overhang, where an excess of available units from a previous multi-year construction boom outpaced the market’s current ability to fill them. Despite these rental headwinds, institutional confidence remained evident as the three months ending December 2025 recorded a transaction volume exceeding $570 million. While StorTrack data reflected near-term compression due to this inventory surplus, strategic expansions by major operators like ExtraSpace Storage into high-growth markets signaled continued long-term conviction in the sector’s fundamental resilience.

Canada Market

The Canadian self-storage market concluded 2025, defined by a structural supply-demand mismatch that maintained its stability relative to other commercial real estate asset classes. Market data from December 2025 shows a divergence in pricing strategies: average YoY walk-in rates declined by 1.67%, while online rates rose modestly by 0.39%, indicating broader adoption of digital revenue management tools. The pricing environment is anchored by persistent undersupply in high-barrier hubs like Toronto, where the penetration remains at roughly 1.2 square feet per capita due to restrictive zoning and high development costs. While a cooling housing market has marginally slowed demand, typically driven by residential moves, the trend toward high-density condo living has made storage a functional necessity for urban residents. Institutional activity remains focused on long-term expansion, highlighted by SmartStop Self Storage REIT marking its 15th year in Canada with a 4.3 million-square-foot portfolio, suggesting a balanced outlook for 2026 as the pipeline for new facilities remains constrained by high capital costs.

Currency is in Canadian Dollars (CAD)

About StorTrack

StorTrack is the leading authority in self-storage market data and analytics, trusted by operators, investors, developers, and analysts across the globe. Since 2014, StorTrack has delivered the industry’s most comprehensive and accurate insights on pricing, supply, demand, and market trends. Our powerful platforms— Explorer and Optimize—enable data-driven decisions for everything from site selection and feasibility to revenue optimization and competitive benchmarking. With coverage spanning the U.S., Canada, UK, Europe, Australia, and New Zealand, StorTrack empowers professionals to move with confidence in an increasingly complex and competitive landscape.

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