Rental rates for self-storage units in California have increased more than 26 percent since 2014, according to data released by SpareFoot, an online marketplace for self-storage consumers. The average monthly rate across the state for a unit this year is $114, a bump of $9 (8.5 percent) from last year. By comparison, rates grew 11 percent in 2015 and 6 percent last year.
Rates across the state were mostly stable through the Great Recession to 2014 due to slow development activity. Since then, steady rate increases have coincided with population growth, the report states. Though development of new storage facilities in California has increased, the number of new units coming online has lagged behind demand due to high barriers to entry in many municipalities.
Among the state’s largest metropolitan areas, Los Angeles had the largest year-over-year price increase, jumping from an average rate of $135 in 2016 to $156 this year. Though Long Beach had steep price increases between 2014 and 2016, its average rental rate fell from $134 in 2016 to about $127 this year. Other cities showing steady price growth include Riverside, Sacramento and San Diego.
The data released by SpareFoot echoes state figures from the August Self Storage Rent Index issued this week by Storage Seeker. Modesto, Calif., posted the largest rate increase in the nation last month at 15.5 percent. Among the top 10 growth markets, six were in California.
SpareFoot.com helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 12,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com and Penske Truck Rental.
Sources:
- SpareFoot: California Self-Storage Facts & Figures
- SpareFoot Storage Beat: Self Storage Prices Continue to Surge in California Through 2017
