Is Self Storage a Good Investment for 2025?

The self storage industry is evolving. As we enter 2025, this industry is well-positioned to adapt to the shifting landscape of increased mobility and shifting customer expectations. Facility owners and operators who invest in flexible pricing, innovative technology solutions, and targeted regional marketing will be better equipped to thrive in this evolving market.

In our previous blog, “2025 Self Storage Industry Growth Projections and Trends,” we looked at top trends and innovations expected to shape the construction industry in 2025. From an investment standpoint, Self Storage still provides great opportunities for investors. The US market alone is expected to jump from $44.37 billion to $49.88 billion by 2029. This represents a Compound Annual Growth Rate of 2.37%¹.

Why the Growth Projections?

• More Americans are on the Move. According to a study from Storable, 37% of people are planning or considering moving within the next 6 to 12 months, up from 25% earlier this year. An additional 23% are thinking about relocating. This increased mobility could signal a higher demand for storage solutions². This surge in moving activity is good news for investors and current facility owners. Regardless of whether individuals are moving for better job opportunities or relocating to more affordable areas, many will likely need storage solutions to bridge the gap between moves.
• Regional Shifts and Opportunities. Building on the movement projections for next year, the South continues to be a top destination for those projected movers, with 40% of respondents planning to relocate there. States like Texas, Florida, and North Carolina are popular due to their lower cost of living and strong job markets. On the flip side, the Northeast, despite its population losses in recent years, is showing signs of a rebound, with 23% of movers planning to move to that area.

  This regional trend presents opportunities for expansion for investors and facility owners. Targeting areas with high mobility and growing demand for temporary storage could help them tap into these trends.

• Customer Satisfaction is High. The Storable survey also revealed that customer satisfaction in the self-storage industry is strong. This is an excellent sign for the industry, indicating that storage providers meet customer expectations³.
• Price Matters. Price is a significant factor when it comes to self storage. In the Storable survey, 83% of respondents emphasized that price is a significant factor when choosing a storage unit. Affordable, flexible options will likely continue to be a key selling point for facility owners. Convenience and location also rank high, with 68% of respondents emphasizing the importance of accessible facilities.
• Boat and RV Storage Still on the Rise. Boat and RV storage has shown steady growth for the past ten years now and it is not projected to slow down. It is currently projected to reach $44.7 billion by 2030, growing at a Compound Annual Growth Rate of 12.5% during the forecasted period from 2024 to 2030⁴. IBISWorld also projects that the RV and boat storage sector will have an annual growth rate of 3.4% until 2026.

This expansion has been fueled primarily by an increase in RV ownership and a rising population of boating enthusiasts, creating a demand for dependable storage solutions during periods of inactivity. Storage options may include uncovered storage, canopies (or covered storage), or storage condos (fully enclosed storage).

In our blog titled, “Investing in Storage Condominiums,” we address this sector of Boat & RV Storage as a great investment alternative.

• Technology and Flexibility. In 2025, technology will play an increasingly crucial role in the self storage industry. Technology solutions like online booking, virtual unit tours, and smart access systems will be key in meeting customer needs, especially those moving to a new region. The younger demographic is more likely to expect digital solutions that make remote managing easier.

Investors and facility owners should also consider the growing demand for short-term storage. With 79% of customers needing storage for six months or less, flexibility in rental terms and ease of extension could be a game-changer for attracting and retaining customers.

What Does This Mean for Investors?

As more people plan moves, the demand for storage is projected to grow. Current facility owners must adapt by offering value-driven services while keeping prices attractive to stay competitive.

The global population is increasing. More people means more stuff creating a need to stash their belongings. With the increased cost of living, many young professionals are opting to rent rather than buy, living in apartments and condos with limited space.

Self storage is profitable. Revenue from self storage rentals and sales is on the rise. The US market alone is expected to jump from $44.37 billion to $49.88 billion by 2029. With high demand and significant cash flow potential, self storage is an appealing real estate investment.

The self storage industry shows no signs of slowing down, and recent trends explain why there are so many storage facilities. In our blog, “Self Storage is an Investment Alternative,” we discuss the primary reason investors look at this asset class is because it can be an inflation hedge. This is still true today.

Here’s what the Forge President and CEO have to say about “Self storage as an investment.”

Strong market fundamentals, smart investments in technology, and a growing customer base all point to continued opportunities for self storage facility owners and investors. The demand for extra space isn’t going away anytime soon. For people and businesses with too much stuff and not enough room, self storage provides an ideal solution.

References
1. Davison, M. (2024, July 4). Storeganise. Retrieved from storeganise.com:
https://storeganise.com/blog/why-are-so-many-storage-facilities-being-built

2. Storable. (2024, October 22). Retrieved from storable.com:
https://www.storable.com/resources/learn/2025-self-storage-industry-outlook-trends-to-watch/

3. Investinselfstorage.com. (2024). Retrieved from StorageUnits:
https://investinselfstorage.com/2025-self-storage-industry-outlook-whats-ahead/

4. Verified Market Reports. (2024, November). Retrieved from verifiedmarketreports.com:
https://www.verifiedmarketreports.com/product/rv-and-boat-storage-market/