​About Spatial Laser

We are building a software-as-a-service offering to help real estate investors discover where to buy rental properties, down to the exact block and individual opportunity. We use machine learning to model investment returns, risk, and market conditions at the hyper-local level using proprietary ranking and scoring. We display this visually in a colorful map-driven system. Investors get recommendations they can act upon immediately.

As we build our product, we are looking for early adopters and test users. Be the first to know about product updates by signing up here: https://mailchi.mp/spatiallaser/prelaunch

Have you ever noticed all the big houses in the Dallas-Fort Worth suburbs? They are a reflection of changing consumer tastes over time, as well as dramatic growth in high-paying professional jobs. 

Big houses weren't always so common. If we look at the data, a noticeable jump in average home sizes happened in the mid-to-late 1980s. This coincided when everything was getting bigger in Dallas — most of today's high-rise skyline also sprouted up in the '80s.  The size of new homes surged from 2,100 sqft to 2,500 sqft. Sizes have crept up only slightly since then, to about 2,600 sqft on average today.

Even before that, there was a jump in size from the modest homes of the 1940s and 50s, to the larger and more luxurious homes of the '60s. The size of new homes took off in the 1950s, rising from 1,500 sqft on average to 2,000 sqft by 1965.

Meanwhile, lot sizes for newly built homes seem to be getting smaller.

• After a peak in 1965, lot sizes have been in decline, with a significant drops in the 1980s and again between 1995 and 2005.
• New homes tend to be larger and on smaller plots of land.

What might the post-COVID future look like if more people work remotely and demand larger homes that can accommodate home offices? We may see another bump in average sizes soon.

Continuing on our theme of improving neighborhoods in Dallas, we decided to look at the question from another angle: code violations.

What are code violations?

They are things reported to the city's "311" hotline system that affect the quality of neighborhood life. According to the Dallas Open Data website, "The most common are high weeds, litter, junk motor vehicles, and bulky trash."

These are all areas that are worthy of a closer look for future investment potential. Taken together with other indicators we have explored, like renovation activity, building permits, and others, we can pinpoint with a good degree of confidence where things are headed.

About Spatial Laser:

We are building a map-driven system and app called Locate Alpha to help investors quickly screen investment locations to avoid making investment mistakes, using advanced mapping techniques. To sign up for updates, please visit our home page www.spatiallaser.com.

How can we identify neighborhoods that are on the up-and-up? Places that are rapidly improving, where money is pouring in to keep houses fresh and up to date?

These are often the type of areas that are going to see significant uplift in price over time.

One way to do that is by changes in economic indicators, but what if we want something that's a little more "up to the minute"? We decided to check MLS listings for the number of times the word "upgrade" or "renovated" is mentioned, and put that on a map.

In Northwest Dallas, an arc of renovation is clearly pushing westward into areas that were historically cheaper.

South of I-30, renovation activity is radiating north and west of the Bishop Arts district.

If the word "renovation" in an MLS listings is telling us that renovation has already happened, that makes it a kind of lagging indicator looking at the recent past. What if we wanted something forward-looking that might tell us a hint of the near-future? Building permits can help. We took building permit data from the Dallas Open Data Initiative and filtered out major public works to identify areas where construction is happening "now."

There are some overlaps but also some important differences. Construction permit data are picking up major redevelopments happening north of I-30. But they also identify some activity happening outside the core Oak Cliff zones, in places further east like Cedar Crest, where home renovation is at an earlier stage and happening at a smaller scale. These changes vary widely from block to block. But this helps us find which blocks might be the hot blocks of the future, and help us hone in on buying opportunities there in order to benefit from the upward trend, whether it's for flipping or a buy-rehab-rent strategy.