A Note from the Founder 6.9.2025

Zachary Urow August 12, 2025

Labor Market Slows Despite May Gains, Rate Cuts Likely Delayed

  • The U.S. added 139,000 jobs in May, which was above the expected 126,000. However, March and April figures were revised down by a combined 95,000 jobs.
  • The unemployment rate remained at 4.2%. Labor force participation declined to 62.4%, with private sector hiring falling to its lowest level in two years.
  • Oxford Economics Chief U.S. Economist, Ryan Sweet, reinforces expectations that the Federal Reserve will delay rate cuts until December.

Regional Growth in South and Mountain West

  • Self-storage markets in the South and Mountain West regions are leading nationally driven by migration, demand, and investor interest.
  • Cities like Boise, Coeur d’Alene, and Fayetteville top national rankings due to high demand and operational efficiency.
  • Larger metros such as Houston, Jacksonville, and Sacramento also show strong performance due to strong rental income potential and elevated investor activity.

Our Thoughts

  • Labor market data reinforces a gradual cooling trend. Investors should continue watching rate policy, as delayed cuts may sustain current cap rate expectations.
  • Strong performance in South and Mountain West markets shows ongoing demand in migration-driven regions. Operators in these areas may find opportunities to adjust pricing upward as supply pressures ease.