A Note from the Founder 10.24.2025

Zachary Urow October 28, 2025

Inflation Rises Slightly Ahead of Fed Decision

  • The Consumer Price Index increased by 0.3% in September, following a 0.4% rise in August. Year-over-year inflation rose slightly from 2.9% to 3.0%.
  • Core inflation, which excludes food and energy, rose by 0.2% in September and 3.0% year-over-year. This marks the third consecutive month of steady underlying inflation.
  • This is the only official economic data released this month amid the government shutdown, and the results reinforce expectations for Fed rate cuts next week.

Downsizing Drives New Self-Storage Demand in 2025

  • A new StorageCafe study using data from Yardi Matrix finds that downsizing from a four-bedroom to a two-bedroom home frees an average of $200,000 in net gains.
  • In 15 of the top 20 downsizing markets, rental street rates are below the national average, providing affordable flexibility for homeowners moving into smaller spaces.
  • The trend reflects shifting demographics and priorities, with retirees, millennials, and Gen Z seeking financial stability, convenience, and more intentional lifestyles.

Our Thoughts

  • Inflation remains stable and continues to build optimism that Fed rate relief is near. Lower rates would improve borrowing conditions and support stronger transaction activity across the storage industry.
  • Self-storage continues to bridge lifestyle and financial goals. As households seek to simplify living and lower costs, storage use is shifting from temporary need to a stable part of modern housing decisions.