NYC Files Lawsuit Against Extra Space Over Alleged Deceptive Pricing

Posted by MSM on Feb 10, 2026 1:16:24 PM

New York City has filed a lawsuit against Extra Space Storage, alleging the self-storage company has been engaging in "deceptive and predatory pricing practices" that misled customers and led to steep, unexpected rent increases.

The suit was filed by the city’s Department of Consumer and Worker Protection (DCWP) under the administration of Mayor Zohran Mamdani and targets Extra Space’s operations at multiple New York City locations. City officials accuse the company of using low advertised rates to attract customers, only to significantly raise rents after move-in without clear disclosure or adequate notice.

According to the complaint, some customers reported their monthly rents more than doubling in relatively short periods of time. In several cases cited by the city, initial rates around $100 to $150 reportedly jumped to $300 or more, leaving tenants with little choice but to pay higher prices or incur the cost and logistical burden of moving their stored belongings elsewhere.

DCWP alleges these practices constitute a classic “bait-and-switch” scheme and violate New York City consumer protection laws. The city also claims Extra Space failed to properly disclose the likelihood or timing of rent increases, creating the impression that advertised prices would remain stable longer than they actually did.

The lawsuit seeks approximately $5 million in civil penalties, along with restitution for affected customers and injunctive relief that would require Extra Space to change its pricing and disclosure practices in New York City.

Extra Space Storage has not admitted wrongdoing. In statements reported by national media, the company has said it complies with applicable laws and disputes the city’s characterization of its pricing practices.

In MSM's 2026 Self-Storage Outlook, Extra Space Storage CEO Joe Margolis addressed rent increases directly in relation to California's SB709. "[The bill] started as price control but morphed into a bill requiring certain disclosures, and we support that. Our disclosures were already strong; now they’re specified down to font and color. Our web customers want and respond to an initially discounted rate, and we’ll offer customers what they want as long as it’s fully disclosed that it may change upon notice."

The lawsuit remains in its early stages. Its outcome could have implications not only for Extra Space Storage’s operations in New York City, but also for how large self-storage operators market and adjust rental rates in other major metropolitan areas.