California’s self-storage market is navigating a period of tempered performance as advertised rates face downward pressure from shifting migration patterns and persistent supply in select metros. While the state has historically benefited from high-density living and smaller than average housing units, recent data reveals a cooling trend, with year-over-year rate growth for main unit types turning negative in major hubs like San Diego, San Francisco, and Los Angeles. Despite this broader pullback, certain markets show signs of stabilization. For instance, San Jose maintained a flat 0.0% month-over-month rate change in January 2026, supported by one of the lowest new supply pipelines in the country at just 1.0% of existing inventory. Nationally, climate-controlled units continue to outperform non-climate-controlled counterparts, a trend mirrored in California where the performance gap is helping to absorb newer deliveries.

 

Los Angeles

The Los Angeles market is characterized by constrained supply and a significant pullback in sales activity following major portfolio deals in previous years. As of January 2026, the under construction pipeline stands at 2.6% of existing inventory, a slight decrease from the 2.8% recorded in December 2025. While the market recorded a minor 0.4% year-over-year decline in advertised rates, it remains one of the highestpriced regions in the country with an average street rate of $27.18. The lack of buildable space in coastal urban areas continues to drive long-term fundamentals.

 

Rental Rates

Source: Yardi Matrix, Real Capital Analytics 

10 x 10 Average Street Rate	$27.22
Month-Over-Month Change	-0.10%
Year-Over-Year Change	-0.40%
Under Construction by Percentage of Inventory	2.80%
12-Month Sales Volume	$485M

 

Los Angeles Sales Volume

Source: Real Capital Analytics

 

 

Inland Empire

Emerging as a leader for population growth in Southern California, the Inland Empire benefits from more favorable housing supply-demand dynamics compared to neighboring Los Angeles. The market remains relatively stable, posting a marginal 0.2% year-over-year rent decrease and a small 0.1% month-over-month rate increase in January 2026. With an under construction pipeline representing only 1.7% of inventory, the metro maintains a healthy balance between new deliveries and household formation.

 

Rental Rates

Source: Yardi Matrix, Real Capital Analytics

10 x 10 Average Street Rate	$17.28
Month-Over-Month Change	0.10%
Year-Over-Year Change	-0.20%
Under Construction by Percentage of Inventory	1.70%
12-Month Sales Volume	$146M

 

Inland Empire Sales Volume

Source: Riverside & San Bernadino | Real Capital Analytics

 

San Diego

San Diego’s self-storage demand is bolstered by household formation that has historically outpaced the state average. The market is currently navigating a 1.3% year-over-year decline in advertised rates as it absorbs existing inventory. However, the new supply pipeline remains disciplined, with projects under construction accounting for only 1.6% of stock. A high concentration of Millennials and Gen Z in the metro suggests that future family creation will continue to act as a primary catalyst for storage utilization.

 

Rental Rates

Source: Yardi Matrix, Real Capital Analytics

10 x 10 Average Street Rate	$23.52
Month-Over-Month Change	0.00%
Year-Over-Year Change	-1.30%
Under Construction by Percentage of Inventory	1.60%
12-Month Sales Volume	$67M

 

San Diego Sales Volume

 

Bay Area

The Bay Area continues to see some of the tightest self-storage space-per-person ratios in the state. High retail sales per capita and exceptionally small average apartment sizes necessitate the use of off-site storage for consumer goods. In January 2026, the market showed stability with 0.0% month-over-month change in street rates, even as it faced a 0.7% year-over-year decline. Development remains highly restricted, with only 1.0% of existing inventory currently under construction.

 

Rental Rates

Source: Yardi Matrix, Real Capital Analytics

10 x 10 Average Street Rate	$26.03
Month-Over-Month Change	0.00%
Year-Over-Year Change	-0.70%
Under Construction by Percentage of Inventory	1.00%
12-Month Sales Volume	$403M

 

Bay Area Sales Volume