Understanding Self-Storage Demand and Responding with Strategy
Exploring why tenants rent self-storage can provide valuable insights for shaping effective strategies.
As we move through Q2 of 2025, California’s self-storage industry is settling into a new normal. The post-pandemic surge has tapered off, and why tenants rent self-storage is shifting in response. Tenants are more cost-conscious, lease-up periods are longer, and digital competition is intensifying.
At Cubix Asset Management, we see this shift not as a setback, but as a strategic opportunity. While others chase growth, we focus on helping storage owners drive performance, reduce churn, and build long-term value. In order to stay competitive, it’s essential to understand why tenants rent self-storage and respond with precision.
Residential Transitions Are Still a Core Demand Driver
Life events continue to bring people to self-storage. From college transitions to downsizing after retirement, these personal milestones drive consistent demand. However, rising inflation and housing costs are adding new layers of complexity.
Common residential scenarios:
- Renovations or unexpected home repairs
- Delayed home sales due to clutter
- Downsizing after retirement or divorce
- College students storing between semesters
- Parents converting rooms after kids move out
How Cubix helps:
We align our digital marketing strategy with these seasonal and life-based transitions. For example, we target periods of known life change, such as graduation or retirement, with tailored campaigns. In addition, our pricing meets customers where they are, without compromising long-term asset value.
Understanding why tenants rent self-storage during these transitions helps us proactively market to renters before they even begin their search.
Housing Pressures and Migration Patterns Are Shifting the Map
California has now experienced five straight years of net out-migration. At the same time, Q1 home sales fell by 4.5%. These changes are reshaping self-storage demand across both metro and suburban markets.
What we’re seeing:
- Renters using storage to avoid upsizing
- Increased turnover in urban rentals
- Suburban facilities absorbing outbound migration
- Smaller apartments with no overflow space
How Cubix helps:
Our revenue management team tracks housing data and migration trends to optimize unit mix and pricing. Rather than relying on blanket discounts, we adjust pricing by unit type and season to maintain stable performance.
Small Businesses Are Turning to Storage as Flexible Infrastructure
As economic pressures rise, small business owners are seeking affordable, flexible solutions. Storage units are becoming hubs for inventory, operations, and tools. Indeed, this trend continues to grow across suburban and tertiary markets.
Use cases include:
- E-commerce inventory and dropshipping
- Contractor materials and jobsite prep
- Archived records and compliance files
- Temporary storage for seasonal staffing
How Cubix helps:
We leverage targeted outreach to attract commercial renters looking for scalable solutions. Moreover, our messaging emphasizes flexibility, security, and 24/7 access. Together with our clients, we tailor offerings to meet the unique needs of business tenants.
Lifestyle Storage: Serving Renters by Choice, Not Just Necessity
Not all renters are responding to crisis. On the contrary, many are choosing storage to simplify their lifestyles, travel more often, or pursue outdoor hobbies.
Emerging lifestyle storage trends:
- RV and boat storage in HOA-restricted communities
- Long-term gear storage for adventurers
- Overflow storage for frequent travelers
- Staging space for resale or home listings
How Cubix helps:
We help owners identify and market these upsell opportunities. In particular, RV and vehicle storage units are often underutilized. With strategic promotion, they become high-margin assets that expand your revenue base.
Demographic Trends Are Driving New Storage Behavior
Demographic shifts are changing how and when people rent storage. Not only are renters reacting to economic conditions, but they’re also adjusting to evolving household dynamics.
Key trends Cubix monitors:
- Inflation-driven delays in major moves
- Military and student storage needs
- Urban renters shifting overflow to suburban markets
- Creative use of storage in shared households
How Cubix helps:
Our local market insights inform everything from campaign messaging to lease structures. As a result, we adjust operations and promotions to match regional renter behavior.
The reasons behind why tenants rent self-storage often vary by region, age group, and financial situation. That’s why we approach each market with targeted insight.
Self-Storage Search Demand Is Slowing, but Opportunity Remains
The phrase “storage near me” is now at its lowest search volume since 2020. Nevertheless, opportunities still exist for operators who adapt their digital strategy.
How Cubix helps:
We build SEO-driven digital strategies that keep your facility visible. For instance, we optimize blog content, invest in high-ROI paid search, and streamline the move-in process to reduce lead leakage.
Dynamic Pricing Is Key in a Correcting Market
Between Q3 2022 and Q1 2025, average rates in major markets like Washington dropped by 36%. Despite this, many operators continue to rely on outdated strategies or across-the-board discounts.
How Cubix helps:
We use real-time pricing tools segmented by unit type and lease duration. Consequently, we offer intentional, data-backed promotions. Learn more in our self-storage pricing strategies guide.
The Cubix Advantage in a Flat Market
In today’s environment, the best-performing operators are not the biggest. Instead, they’re the most efficient. Cubix delivers that efficiency with a system built for today’s challenges.
With Cubix, you get:
- Smart pricing based on demand and unit type
- Automation tools that reduce staffing needs
- Optimized lead handling for higher conversions
- Localized data to inform unit mix and marketing
- Strategic promotions focused on ROI
Final Takeaway: Strategy Wins in 2025
Occupancy alone is no longer enough. In order to compete, operators must understand renter behavior, price with precision, and streamline every aspect of their business.
At Cubix, we do more than manage. To sum up, we strategize, optimize, and deliver results. Understanding why tenants rent self-storage is just the beginning. Acting on that knowledge with data and discipline is what sets our partners apart.
📬 Get in touch today.
Email us at info@cubixassetmanagement.com or contact us here to schedule your performance consultation.
