10 Jun 2025
With May 2025 behind us we can see how the rental rates have trended year over year.
This marks a 0.98% decrease year over year.
While not the positive year over year growth we were hoping for- this seems to be a clear inflection point signaling that we’ve bottomed out and can expect to see rates to start recovering!
A lot of this rent growth was brought on by the looming rent control bill in California, causing the REITs to pump the brakes on their aggressive rental rate and ECRI strategy. While after the legislation was watered down and passed as more of a transparency bill rather than rent control some of the REITs lowered their rates again after holding their breath in lead up to it, causing rates in May to not finish quite as strong as expected.
However - it is important to note that ExtraSpace Storage - the largest operator in North America, and the most aggressive with lowering rates has seen an upward trend this past Month - a positive sign for rental rates for the rest of the year!
(Top 25 Markets 10x10 CC EXR)
