The self-storage sector faces a quiet year ahead, according to Goldman Sachs. With limited demand catalysts like housing turnover on the horizon, 2026 is shaping up to look a lot like 2025. That means portfolio footprint and how well companies perform in their specific markets will drive most of the earnings action.

What Goldman Says

Analyst Caitlin Burrows maintained a Buy rating on Public Storage (PSA) while trimming the price target from $332 to $321. The reasoning? Same-store revenue growth for 2026 could land anywhere between negative 1.0% and positive 1.2%, excluding any potential boost from Los Angeles.

Here's where it gets interesting: Los Angeles could deliver outsized performance if wildfire pricing restrictions get removed. Given Public Storage's geographic mix, that would matter more for them than competitors, Burrows noted.

Performance Gaps in the Same Markets

Even when competing head-to-head with Extra Space Storage Inc. (EXR) in the same markets, Public Storage is pulling ahead. "Despite being in various overlapping markets, performance can vary greatly," Burrows explained, emphasizing how location combined with company strategy and execution makes all the difference.

Both companies are outperforming the broader self-storage market, but they're facing different headwinds. While Public Storage has been vocal about how wildfire restrictions are hampering LA market pricing, Extra Space Storage actually took bigger hits in Los Angeles during the third quarter of 2025.

Price Action: PSA shares were up 0.80% to $290.07 at the time of publication on Thursday.