Phoenix Is Quietly Becoming a Self‑Storage Powerhouse — And Real Estate Is the Reason

If you’ve been watching Phoenix’s growth over the past few years, you know the Valley doesn’t do anything halfway. Population growth, suburban expansion, new home construction — everything here moves fast. But there’s one sector growing right alongside housing that most people overlook: self‑storage.

After digging into the latest StorageCafe report, it’s clear Phoenix isn’t just participating in the national storage trend. It’s becoming one of the top self‑storage markets in the entire country, and in my opinion, the reason is simple: real estate is driving it.

Before we dive into the “why,” here’s the quick snapshot.

Quick Highlights (from the StorageCafe report)

Atlanta led the nation with 2.2 million sq. ft. of new self‑storage delivered in 2025.
Phoenix also topped 2 million sq. ft., making Atlanta and Phoenix the only two U.S. metros to cross that mark.
National deliveries fell 21% year‑over‑year, but both metros continued to bring new projects online.
New supply expanded total inventory by roughly 4–5% in each market.
Average street rates held near $120 in both Atlanta and Phoenix.
REITs control about 48% of Atlanta’s inventory and 43% of Phoenix’s, showing strong institutional confidence.

The U.S. Slowed Down — Phoenix Didn’t

Nationally, self‑storage construction cooled in 2025. StorageCafe reports that the U.S. delivered 51 million square feet of new storage space — a 21% drop from the year before. Developers pulled back, worried about oversupply and softening demand.

But Phoenix didn’t get that memo.

According to the report, Phoenix was one of only two metros in the entire country — the other being Atlanta — to add over 2 million square feet of new storage space in 2025. That alone puts the Valley in rare company.

When the rest of the country tapped the brakes, Phoenix kept building.

Why Phoenix Is Surging: It All Comes Back to Real Estate

Storage demand doesn’t happen in a vacuum. It follows people, housing, and movement — and Phoenix has all three at levels most metros can’t touch.

Here’s how the StorageCafe data ties directly into what’s happening in our real estate market:

1. Migration Is Off the Charts

StorageCafe highlights that developers are targeting “fast-growing Sunbelt states” and “high-churn ‘life-transition’ metros.” That’s Phoenix in a nutshell.

People are still moving here in huge numbers — for jobs, affordability, lifestyle, and sunshine. Every new arrival goes through a transition period, and storage fills the gap.

2. Suburban Growth Is Exploding

Phoenix’s outward expansion is one of the biggest drivers of storage demand. As new homes go up in Buckeye, Queen Creek, Surprise, Goodyear, and Mesa, storage follows right behind.

Rooftops first. Storage second. It’s a predictable pattern.

3. Housing Churn Creates Constant Movement

StorageCafe points out that markets with “elevated housing churn” see the strongest demand. Phoenix has:

High renter turnover
Seasonal residents
Downsizing retirees
Corporate relocations
Students
Remote workers

Every one of these groups uses storage at some point.

4. Affordability Pressures Push People Into Smaller Spaces

Phoenix isn’t as expensive as California, but affordability is tightening. When people downsize or delay buying, they need extra space — and storage becomes the overflow.

StorageCafe even notes that in high‑cost markets, storage becomes a “lifestyle utility.” Phoenix is heading in that direction.

Phoenix vs. Atlanta: The Only Two Heavyweights

Atlanta technically ranked #1 for total new supply, but Phoenix isn’t far behind. And here’s the difference:

Atlanta’s demand is heavily tied to logistics and corporate churn.
Phoenix’s demand is more balanced — housing, lifestyle transitions, small business growth, and migration all play a role.

That balance makes Phoenix’s storage market feel more stable and sustainable long‑term.

My Take: Phoenix Is Becoming a Storage Powerhouse

This is where the opinion comes in.

Based on the data — and what we’re seeing on the ground — Phoenix isn’t just having a strong year. It’s entering a long‑term cycle where storage becomes a core part of the Valley’s real estate ecosystem.

The fundamentals are too strong to ignore:

Population growth isn’t slowing
Suburban development is accelerating
Housing churn remains high
Small business activity is rising
Investors are targeting Phoenix
Storage absorption is improving

StorageCafe even notes the sector is entering a “period of recovery” with better occupancy and stabilizing rents. Phoenix is positioned to benefit more than almost any metro.