In the US, the apartment and self-storage markets are adapting to changing economic conditions and consumer needs. Both markets play a crucial role in the economy and are expected to maintain growth trajectories driven by the demand for housing and storage solutions.
The demand for safe storage solutions is supported by lifestyle changes such as the increasing prevalence of remote work and downsizing among retirees. Additionally, the rise of e-commerce is further supporting this trend. As businesses downsize their space and individuals declutter their homes, there is a rising demand for self-storage solutions.
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According to Nuveen Real Estate, the US apartment market saw record supply growth in 2024. This made it challenging for apartment operators to grow rents and keep occupancy levels above the sector’s long-term average. Despite these challenges, the demand for apartments remains robust due to a housing shortage and a growing preference for renting, particularly among younger generations who prefer flexibility over owning a home.
The apartment market saw an increase in resident retention in 2024 compared to the previous year. Middle-income households are expected to continue driving the ongoing demand for rental properties in the foreseeable future.
With this background in mind, let’s take a look at the 12 best self-storage and apartment stocks to invest in.
Aerial view of a thriving self-storage facility, showcasing the company’s expertise in acquisition and development.
Methodology
To compile our list of the 12 best self-storage and apartment stocks to invest in, we looked for the largest apartment and self-storage companies. We reviewed our own rankings, financial media reports, and various online resources including ETFs to compile a list of the best self-storage and apartment stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 12 best self-storage and apartment stocks to invest in were then ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2024.
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12 Best Self Storage and Apartment Stocks to Invest In
12. National Storage Affiliates Trust (NYSE:NSA)
Number of Hedge Fund Holders: 20
National Storage Affiliates Trust (NYSE:NSA) is a real estate investment trust (REIT) that ranks among the best self-storage stocks to invest in. The company is strategically focused on the ownership, operation, and acquisition of self-storage properties primarily located within the top 100 metropolitan statistical areas in the US. As of September 30, 2024, National Storage Affiliates Trust (NYSE:NSA) owned and operated 1,070 self-storage properties with a total of approximately 70 million rentable square feet. The company’s self-storage properties are located in 42 US states and Puerto Rico.
The company is making targeted acquisitions and taking steps to improve operational efficiencies. National Storage Affiliates Trust (NYSE:NSA) completed the internalization of its participating regional operator (PRO) structure, effective July 1, 2024. With this move, the company can acquire the PROs’ management agreements and no longer be required to pay any supervisory and administrative fees. National Storage Affiliates Trust (NYSE:NSA) expects that this will result in annual savings of about $7.5 to $9 million. Additionally, in Q3 2024, the company acquired 18 properties in markets where it already has an established presence. These acquisitions for nearly $150 million will improve National Storage Affiliates Trust’s (NYSE:NSA) overall portfolio quality and future earnings.
11. Janus International Group Inc. (NYSE:JBI)
Number of Hedge Fund Holders: 22
Janus International Group Inc. (NYSE:JBI) is a global manufacturer and supplier of self-storage, commercial, and industrial building solutions. The company’s solutions include roll-up and swing doors, hallway systems, storage units, and facility and door automation technologies. Janus International Group Inc. (NYSE:JBI) is one of the best self-storage stocks to invest in according to hedge funds.
The company is expanding its product offerings by introducing innovative solutions to serve the self-storage industry. In July 2024, Janus International Group Inc. (NYSE:JBI) launched the NS series and introduced 2 new roll-up door options that are designed to enhance safety and security for self-storage facilities.
However, in the third quarter of 2024, the company faced challenges due to macroeconomic factors, project delays, and interest rate uncertainty. To address these pressures, Janus International Group Inc. (NYSE:JBI) is taking steps to align with the current market environment and has introduced a structural cost reduction plan. This plan is designed to streamline and optimize the business and reduce selling, general, and administrative expenses. Janus International Group Inc. (NYSE:JBI) expects to generate approximately $8 million to $12 million of annual pre-tax cost savings through these actions.
10. U-Haul Holding Company (NYSE:UHAL)
Number of Hedge Fund Holders: 22
U-Haul Holding Company (NYSE:UHAL), formerly AMERCO, is an American company that ranks among the best self-storage stocks to buy. With one of the largest fleets of rental equipment in North America, the company rents moving trucks, trailers, and self-storage space. U-Haul Holding Company (NYSE:UHAL) offers more than 1 million rentable storage units and over 92 million square feet of self-storage space at owned and managed facilities.
The company is focused on expanding its self-storage operations. In the fiscal third quarter of 2025, which ended on December 31, 2024, U-Haul Holding Company (NYSE:UHAL) added 34 new storage locations with a total of 2.3 million net rentable square feet (NRSF). 23 of these were acquisitions of existing storage facilities and 11 were internally developed. U-Haul Holding Company (NYSE:UHAL) also currently has approximately 16.8 million NRSF in development or pending. This expansion strategy seems to be paying off for U-Haul Holding Company (NYSE:UHAL). For the third quarter of fiscal year 2025, the company reported a 7.9% year-over-year increase in self-storage revenues, which amounted to an increase of $16.6 million compared to the third quarter of fiscal year 2024.
9. CubeSmart (NYSE:CUBE)
Number of Hedge Fund Holders: 26
CubeSmart (NYSE:CUBE) is a self-administered and self-managed real estate investment trust (REIT) that owns, develops, acquires, and manages self-storage facilities in the United States. As one of the top self-storage companies in the country, it owns or manages more than 1,500 self-storage properties and serves both residential and commercial customers. CubeSmart (NYSE:CUBE) ranks among the best self-storage stocks to invest in.
The company is strategically focused on disciplined capital allocation while pursuing growth opportunities in the self-storage industry. By the end of the third quarter of 2024, CubeSmart (NYSE:CUBE) had successfully added 131 stores to its third-party management platform. This marked the 8th consecutive year of adding 130 or more stores. In addition to this, CubeSmart (NYSE:CUBE) is developing self-storage properties in high-barrier-to-entry areas. The company has 2 joint ventures under construction in New York, which are expected to open by Q3 2025.
8. Extra Space Storage Inc. (NYSE:EXR)
Number of Hedge Fund Holders: 28
Extra Space Storage Inc. (NYSE:EXR) is a real estate investment trust (REIT) that owns and operates self-storage facilities in the US. The company has a broad portfolio of conveniently located and secure storage units, including RV storage, boat storage, and business storage. As the largest operator of self-storage facilities in the country, the company owns or operates more than 3,800 self-storage properties and approximately 296 million square feet of rentable storage space. Extra Space Storage Inc. (NYSE:EXR) is one of the best self-storage stocks to buy.
The company is strategically focused on long-term growth and expansion through acquisitions. Extra Space Storage Inc. (NYSE:EXR) completed the merger with Life Storage in July 2023. This transaction created the largest operator of self-storage facilities in the United States. Extra Space Storage Inc. (NYSE:EXR) expects to unlock a minimum of $100 million in annual synergies from this transaction and deliver strong financial performance in the coming years. Additionally, the company continues to expand its self-storage store network. In the nine months ended September 30, 2024, Extra Space Storage Inc. (NYSE:EXR) added 237 stores to its third-party management platforms. This resulted in a net addition of 124 stores.
7. Mid-America Apartment Communities, Inc. (NYSE:MAA)
Number of Hedge Fund Holders: 28
Mid-America Apartment Communities, Inc. (NYSE:MAA) is a real estate investment trust (REIT) that owns, acquires, develops, and manages quality apartment communities primarily in the Southeast, Southwest, and Mid-Atlantic regions of the US. By the end of 2024, the company had ownership interest in more than 104,000 apartment units, including communities being developed, across 16 states and the District of Columbia. Mid-America Apartment Communities, Inc. (NYSE:MAA) is one of the best apartment stocks to buy.
The company is focused on improving its portfolio and expects solid returns through investments in redevelopment and repositioning programs. Mid-America Apartment Communities, Inc. (NYSE:MAA) is also implementing new technology initiatives aimed at improving resident services and operational efficiencies. These initiatives are expected to increase margins and accelerate earnings in the future. A key strategy for Mid-America Apartment Communities, Inc. (NYSE:MAA) in 2025 involves aggressively launching property-wide Wi-Fi across its portfolio and increasing investments in interior renovation programs, which the company expects will benefit from recently delivered, higher-priced new supply in the market.
6. UDR, Inc. (NYSE:UDR)
Number of Hedge Fund Holders: 29
UDR, Inc. (NYSE:UDR) is a real estate investment trust (REIT) that owns, acquires, develops, and manages apartment communities in the United States. By the end of 2024, the company owned or had an ownership position in more than 60,000 apartment homes. UDR, Inc. (NYSE:UDR) ranks among the best apartment stocks to invest in according to hedge funds.
During the fourth quarter of 2024, the company strategically prioritized occupancy and this led to an increase in occupancy. Throughout the quarter, UDR, Inc. (NYSE:UDR) reported a steady increase in occupancy each month, resulting in a 50 basis point sequential improvement compared to the third quarter of 2024. As of early February 2025, UDR, Inc. (NYSE:UDR) has maintained an occupancy rate above 97%, which is about 30 basis points higher than the average for Q4 2024.
To grow its 2025 same-store revenue, the company is strategically focused on innovation and operational improvements. UDR, Inc. (NYSE:UDR) expects that the primary drivers for this growth will be the continued installation of property-wide Wi-Fi, additional property upgrades like enhanced package locker systems, customer retention, and reduced fraud. To combat fraud, UDR, Inc. (NYSE:UDR) implemented a range of AI-based detection measures, process improvements, and credit threshold reviews in mid-2024 to improve its resident screening.
5. Equity Residential (NYSE:EQR)
Number of Hedge Fund Holders: 30
Equity Residential (NYSE:EQR) is a real estate investment trust (REIT) that acquires, develops, and manages residential and apartment properties in the United States. The company owns or has investments in 311 properties with more than 84,000 apartments. Equity Residential (NYSE:EQR) has a strong presence in Boston, New York, Washington, D.C., Seattle, San Francisco, and Southern California, and a growing presence in Denver, Atlanta, Dallas/Ft. Worth, and Austin.
The company is strategically investing in newer, high-quality assets in high-growth expansion markets while also divesting from older properties in established markets. In 2024, Equity Residential (NYSE:EQR) added almost $2 billion in high-quality assets to its Atlanta, Dallas, and Denver market portfolios. While these expansion markets may currently prove to be a little challenging due to high supply levels, Equity Residential (NYSE:EQR) is optimistic about the opportunities these markets will bring from the expected strong rental growth in the future.
4. Essex Property Trust, Inc. (NYSE:ESS)
Number of Hedge Fund Holders: 30
Essex Property Trust, Inc. (NYSE:ESS) is a real estate investment trust (REIT) that acquires, develops, and manages multifamily apartment properties in selected West Coast markets, including Southern California, the San Francisco Bay Area, and the Seattle metropolitan area. Currently, the company has ownership interests in 256 apartment communities that contain more than 62,000 apartment homes. Essex Property Trust, Inc. (NYSE:ESS) is one of the best apartment stocks to invest in.
The company is making strategic acquisitions and dispositions to optimize its portfolio and capitalize on West Coast market opportunities. Essex Property Trust, Inc.’s (NYSE:ESS) management believes that the West Coast apartment markets are well-positioned to continue to outperform the US average with strong job growth and wealth creation, driven by centers of innovation and limited levels of housing supply.
In October 2024, Essex Property Trust, Inc. (NYSE:ESS) acquired its joint venture partner’s 49.9% interest in the BEX II portfolio, which contains 4 communities with a total of 871 apartment homes. In November, the company acquired Beaumont in Woodinville, WA, a 344-unit apartment home community for a contract price of $136.1 million. After the end of Q4 2024, Essex Property Trust, Inc. (NYSE:ESS) acquired The Plaza in Foster City, CA, a 307-unit apartment home community for $161.4 million.
3. Camden Property Trust (NYSE:CPT)
Number of Hedge Fund Holders: 33
Camden Property Trust (NYSE:CPT) is a real estate investment trust (REIT) that owns, develops, acquires, and manages multifamily apartment communities in the United States. As one of the largest publicly-traded multifamily companies in the US, it owns and operates 175 properties containing more than 59,000 apartment homes. Camden Property Trust (NYSE:CPT) has 3 properties currently under development.
A key part of Camden Property Trust’s (NYSE:CPT) strategy involves acquiring properties in areas with strong job growth and good economic conditions and this helps the company maintain a competitive portfolio. After the end of Q4 2024, Camden Property Trust (NYSE:CPT) acquired Camden Leander, an apartment community with 352 homes in the Austin, TX metropolitan area for $67.7 million.
On February 14, 2025, Scotiabank analyst Nicholas Yulico raised the firm’s price target for Camden Property Trust (NYSE:CPT) to $135, up from $130, while reiterating a ‘Sector Perform’ rating. This decision came after the Q4 2024 results for the US Multifamily REITs. According to Yulico, the firm sees a stronger blended growth rate in the second half of the year, driven by less pressure from supply and a stable demand outlook. Same-store growth was largely in line with expectations, and Camden Property Trust’s (NYSE:CPT) executives are optimistic about improvements in the transaction market throughout 2025.
2. AvalonBay Communities, Inc. (NYSE:AVB)
Number of Hedge Fund Holders: 35
AvalonBay Communities, Inc. (NYSE:AVB) is an equity real estate investment trust (REIT) that invests in apartments. The company acquires, develops, and manages apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in its expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. By the end of 2024, AvalonBay Communities, Inc. (NYSE:AVB) owned or held an ownership interest in 306 apartment communities with more than 93,000 apartment homes in 12 states and the District of Columbia. This includes 17 wholly-owned communities under development.
The company is focused on expanding its presence in high-demand metropolitan areas and its strategy includes developing new properties and acquiring existing communities in growing regions to enhance its portfolio. In Q4 2024, AvalonBay Communities, Inc. (NYSE:AVB) completed the development of 4 communities and added a total of 1,451 apartment homes to its portfolio. During the quarter, the company also began construction of 2 more wholly-owned apartment communities, which are expected to contain a total of 600 apartment homes. In addition to these developments, AvalonBay Communities, Inc. (NYSE:AVB) acquired 2 communities while selling 3 others during the quarter.
1. WillScot Holdings Corporation (NASDAQ:WSC)
Number of Hedge Fund Holders: 52
WillScot Holdings Corporation (NASDAQ:WSC) is the leading provider of innovative and turnkey space and storage solutions across North America. The company offers a wide range of products, including modular office complexes, portable storage containers, mobile offices, protective buildings and climate-controlled units, and clearspan structures. WillScot Holdings Corporation (NASDAQ:WSC) operates from a network of about 260 branch locations and additional drop lots across the US, Canada, and Mexico. It serves customers in a diverse range of industries, including manufacturing, retail, education, construction, healthcare, and entertainment. WSC is one of the best self-storage stocks to buy.
The corporation offers an extensive range of value-added products and services. As specialty rental services continue to grow, clients look for more complex and tailored solutions. WillScot Holdings Corporation (NASDAQ:WSC) has been strategically investing in technology and has positioned itself well to attract large customers by providing superior services.
On February 18, 2025, Morgan Stanley reaffirmed its ‘Overweight’ rating for WillScot Holdings Corporation (NASDAQ:WSC) while keeping the price target at $50. The firm’s analysts noted that the company’s new capital plan will now include a dividend, which is seen as a significant shift for WillScot Holdings Corporation (NASDAQ:WSC) as it demonstrates a greater focus on operational efficiency and could help potentially draw in new long-term investors. Morgan Stanley’s analysts see this as a new chapter in the company’s financial management that suggests a commitment to providing direct returns to shareholders and indicates confidence in WillScot Holdings Corporation’s (NASDAQ:WSC) future performance. The corporation announced that the first dividend of $0.07 per share will be payable on March 19, 2025, to shareholders of record as of March 5, 2025.
Overall, WSC ranks first among the 12 best self-storage and apartment stocks to invest in. While we acknowledge the potential of self-storage and apartment stocks, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WSC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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