Did you catch Mike Tyson and Jake Paul sparring back in November?
I’ll be honest—I just watched the highlights. But the decision was unanimous. Mike Tyson isn’t the same fighter he once was.
And while Tyson’s punches might not have the same impact at 58, these cities have been delivering heavyweight results in self-storage rent growth. We analyzed the top three markets throwing knockouts since 2020 and what’s driving their performance.
Extra Space Q4 2020 Rate: $7.88
Extra Space Q3 2024 Rate: $13.69
Percent Increase: 73.73%
Oklahoma City (OKC) may not top national real estate charts, but in self-storage, it’s the reigning champ on a percentage basis. Achieved rents for Extra Space Storage in OKC jumped from $7.88 to $13.69—a jaw-dropping 73.73% increase in just four years.
So, what’s driving this massive growth? Population growth and affordability.
Between 2020 and 2023, OKC added 35,000 residents, fueled by booming industries like aerospace, energy, and health care. Affordable housing has made the city even more attractive, bringing in people looking for opportunity and lower costs.
When people move, storage demand spikes. Whether it’s for transitional housing or storing random things that don’t fit anymore, OKC’s storage market is thriving. With occupancy rates near 95 percent, Extra Space has room to grow.
It’s worth pointing out, though, that OKC started at an incredibly low rental base. Even after 74 percent growth, Extra Space’s Q3 2024 rent in OKC was still 30 percent lower than CubeSmart’s San Diego rates were pre-COVID. This highlights the broader context: low initial rates combined with REITs upgrading facility quality and market presence contributed to this growth (Thanks for this insight, Armand!).
Moreover, Oklahoma City serves as a case study in how mid-sized markets can deliver outsized returns when population and economic trends align. Its affordability attracts a wide demographic range, from young professionals to retirees—all of whom contribute to demand.
Public Storage Q4 2020 Rate: $19.91
Public Storage Q3 2024 Rate: $30.19
Percent Increase: 51.63%
Miami isn’t just about beaches, nightlife, and expensive housing; it’s also a self-storage hotspot. Public Storage rents in Miami jumped 51.63 percent from $19.91 to $30.19 since 2020.
What’s the secret sauce? Migration and climate.
Then there’s the weather factor. With hurricanes and tropical storms part of the deal, climate-controlled storage is a necessity for valuables and emergency supplies. Public Storage capitalized on the demand, raising rents while keeping occupancy near 92 percent.
However, Florida’s self-storage operators face growing challenges. Rising insurance costs, driven by the state’s increased vulnerability to natural disasters, are squeezing profit margins. This added pressure makes it even more critical for operators to carefully manage pricing and maintain occupancy.
It’s also worth noting that Miami’s self-storage demand reflects broader demographic shifts. Florida’s appeal as a low-tax state has made it a magnet for high-net-worth individuals, families, and businesses seeking to relocate—a trend that doesn’t seem to be slowing down.
CubeSmart Q4 2020 Rate: $18.50
CubeSmart Q3 2024 Rate: $27.23
Percent Increase: 47.19%
San Diego’s combination of sunshine and sky-high real estate costs makes self-storage a necessity. CubeSmart rents in the area grew 47.19 percent, climbing from $18.50 to $27.23 in four years.
Here’s why: expensive housing and tight supply.
San Diego’s median home price is over $850,000, forcing many residents to downsize. When space runs out, storage becomes the solution. Adding to this is the city’s zoning and environmental restrictions, which make building new facilities a nightmare.
Limited supply means operators like CubeSmart can increase rents without worrying about oversaturation. Despite these higher costs, occupancy stays above 90 percent, proving people are willing to pay for extra space.
Another factor is San Diego’s appeal to a highly transient population. With a large military presence, a significant number of college students, and frequent job relocations, the city’s self-storage demand remains stable across different demographics.
After diving into the data, some clear trends stood out:
Population Growth - OKC and Miami are booming, driving storage demand.
Migration - Whether it’s international migration to Miami or domestic relocations to OKC, people moving equates to storage demand.
High Housing Costs - San Diego shows how expensive real estate fuels storage needs when residents downsize.
Limited Supply - Cities with high barriers to entry, like San Diego, give operators more pricing power.
Self-storage is one of the most resilient asset classes out there. These markets prove that understanding local trends—whether it’s population growth, migration, or supply constraints—can mean the difference between thriving and getting knocked out.
For investors, it boils down to asking the right questions:
Answer those and you have the blueprint for a winning property. And maybe, just maybe, Mike Tyson should start acting like many retirees and invest in a passive, storage portfolio instead of boxing.
To use the words of the great Muhammad Ali, self-storage might not float like a butterfly, but in these markets, it sure stings like a bee.
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Noah Starr is CEO at TractIQ.