Over the past four decades, Phoenix has been rewriting its housing story — and over the last 10 years, that story has gone into overdrive. With more apartments than ever being built, and units shrinking in size, one unlikely sector is riding shotgun: self-storage.
According to StorageCafe, the U.S. has added more than 4.1 million apartments since 2015 — nearly 40% of all completions in the last 40 years. And Phoenix? We’re one of the hottest spots in the nation.
📦 Why Self-Storage Is Surging Nationwide
- Apartments are shrinking — New units average 75 sq. ft. less than in 2005.
- Remote & hybrid lifestyles — People need storage for home office setups, side hustles, and hobbies.
- Demand is skyrocketing — Self-storage searches hit 3.3M/month in 2025, up 14% YoY.
- Renters drive usage — Roughly 35% of storage renters are apartment dwellers.
🌵 Phoenix: A Hotspot for Both Apartments & Storage
Phoenix has added 100,000+ apartments since 1985, ranking 13th nationwide — ahead of Denver, Miami, and San Diego.
- 65% of the Valley’s apartment inventory was delivered in just the last decade.
- Self-storage kept pace, expanding to 10M sq. ft. of supply — about 6 sq. ft. per capita, just shy of the U.S. average.
- Units are smaller and more expensive: 86% of new deliveries are upscale rentals with limited square footage, which directly fuels the need for storage.
This alignment isn’t luck. It’s supply and demand in action. Smaller apartments in hotspots like Midtown, Roosevelt Row, and Tempe are lifestyle-friendly, but they don’t leave much room for skis, golf clubs, or seasonal snowbird gear. Storage is becoming less of a “nice-to-have” and more of a necessity.
🔍 What’s Driving Phoenix’s Storage Demand?
- Smaller Units → Amenities over space = tenants need external storage.
- High Turnover → More renters = more transitional storage demand.
- Seasonal Residents → Snowbirds rely heavily on storage for winter/summer moves.
- Booming Multifamily Pipeline → Phoenix ranks among the fastest-growing multifamily markets in the U.S.
🏙️ How Phoenix Compares to Other Cities
| City | Apartment Growth | Storage Growth | Notable Trend |
|---|---|---|---|
| Phoenix | +65% inventory | +77% supply | Balance: housing + storage |
| Houston | +240K units | +20M sq ft | Units shrank 44 sq ft |
| Austin | +190K units | +7.5M sq ft | 91% of units are high-end |
| Atlanta | +155K units | +5M sq ft | Undersupplied: 4.5 sq ft per capita |
👉 Phoenix stands out for keeping storage growth in balance with apartment demand. In LA or Chicago, storage is lagging way behind.
💡 What This Means for Investors & Developers
- Multifamily Builders → Partner with storage operators or build-in micro storage.
- Self-Storage Investors → Phoenix is still prime for expansion, especially near rental corridors.
- Real Estate Agents → Highlight storage as a hidden amenity when marketing rentals or condos.
- Property Managers → Storage discounts or bundled deals can boost tenant retention.
🏁 Final Thought
Phoenix’s apartment boom isn’t just adding rooftops — it’s changing how people live. Smaller units and high-end finishes are great for lifestyle, but they create demand elsewhere. That “elsewhere” is storage.
For investors, developers, and brokers, this isn’t a side trend — it’s a signal. Housing and storage are now moving hand-in-hand in Phoenix.
Source: StorageCafe
AriZona Real Estate insider! 
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