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TractIQ Self-Storage Case Study Dallas, Texas

MONDAY, SEP 05, 2022

Stemmons Corridor

Highland Park

East Arlington

Dallas

Although it’s only the third-largest city in Texas, Dallas has acquired a certain mystique among non-Texans as being a bit of an avatar for the Lone Star State.

Houston may be the energy capital of the world, and Austin the political capital of Texas, but Dallas has always prided itself as being the primary economic powerhouse for a state that would have the world’s 10th largest economy if it weren’t part of the United States.

Like most of the rest of the state, the Dallas economy has boomed over the past decade. It no longer lives and dies by the fortunes of the oil and gas business; health, education, transportation, financial services and defense all play a major role.

A 2021 study by the Manhattan Institute predicted that the Dallas-Fort Worth metro area would become the de facto capital of the American heartland, based on its economic growth surpassing New York, Los Angeles, and Chicago.

The metro area posted some of the most significant population increases in the nation between 2010 and 2020, even surpassing the state growth rate of 13.9 percent.

Between 2010 and 2020, the Dallas-Fort Worth region added 17 percent to its population, which rose almost 1.1 million people to 7.45 million residents.

The metro area has grown despite having no real apparent geographic advantages. Located in north central Texas, the Dallas-Fort Worth metro sits on the border between the western United States and the Deep South. The area is too far to the north to have the Hispanic influence of the Rio Grande Valley, and too far to the south to be part of the Midwest. It does, however, sit at the junction of Interstate 35, stretching from Laredo to Duluth, Minn., and I-20, extending from Florence, S.C., to the West Texas desert. Its airport, the Dallas-Fort Worth International Airport (technically neither in Dallas or Fort Worth, but spread across at least four suburban cities), was the second-busiest airport in the nation during 2021, according to the Airports Council International.

The median household income of the region rose during the decade, too.

It climbed to $72,882, a hefty premium over the state median of $63,826 – and it did it without a state income tax, a policy that’s boosted domestic migration to Texas for more than a generation. Likewise, a general disregard for planning and zoning processes has driven migration to Texas because of low housing prices, although that may change soon.

A review of building permit records by TractIQ finds slightly more than 71,254 housing units worth $28.5 billion have been in various stages of planning and construction since early 2020 – far fewer than the probable amount needed to provide affordable housing to all of the newcomers.

Stemmons Corridor, Zip Code 75207

Tucked between downtown and the Trinity River, the Stemmons Corridor is a hodgepodge of light industrial facilities, small houses, office buildings, and hotels. The zip code forms an arc to the southwest of downtown and includes the city’s Design District with art dealerships, restaurants, and trendy boutiques.

The neighborhood has relatively few residents by Dallas standards – only 7,715, according to estimates from the 2016-20 American Community Survey – and that figure represents a 20 percent drop from the 2010 Census.

Even so, the people who live there can probably afford the local shops; the median household income is $85,075, a significant increase over the metro median of $72,882 and the state median of $63,826.

It climbed to $72,882, a hefty premium over the state median of $63,826 – and it did it without a state income tax, a policy that’s boosted domestic migration to Texas for more than a generation. Likewise, a general disregard for planning and zoning processes has driven migration to Texas because of low housing prices, although that may change soon.

Housing stats

Signs of gentrification are plenty.

Only 11 percent of households in the zip code include families, and barely 30 percent have lived in the same place in the 75207 zip code for more than one year, compared to the 84.7 percent figure for the metro area. There are virtually no single-family detached homes in the zip code, and only 0.5 percent of households own their homes.

Self-storage stats

The new housing may mean more residents, and more opportunities for self-storage.

Currently, the average resident in the neighborhood has 7.85 square feet of self-storage space,slightly more than the Dallas County average of 7.05 square feet and slightly less than the U.S. average of 8 square feet.

The proximity to downtown means the storage space comes with a premium of $2.35 per square foot, far more than the state average of $1.67. Again, though, additional housing should bring additional residents and increase the need for storage space.

Highland Park, Zip Code 75205

The 75205 zip code includes Highland Park, which is to Dallas as Beverly Hills is to Los Angeles, or the Upper East Side is to New York – that is, a very wealthy enclave with enormous mansions shaded by century-old oak trees.

The zip code is a square about seven miles north of downtown flanked by the Dallas North Tollway on the west and the North Central Expressway on the east. Both highways are major arteries for the fast- growing, affluent Dallas suburbs of Richardson, Allen, and Frisco.

The zip code’s median household income of $159,076 – more than twice the income for the typical metro household — make it one of the wealthiest in the Dallas-Fort Worth metro area, if not the wealthiest.

Housing Stats

Despite the wealth, not everyone in the neighborhood lives in a mansion.

Only 48.9 percent of homes in the zip code are single-family detached units, considerably less than the 63.3 percent average found in the metro region. About 60 percent of people are homeowners, about on a par with the metro area and slightly less than the state average of 62.3 percent.

Roughly 62.5 percent of households contain families, and 78.3 percent of residents have lived in the same house for more than a year, less than the 84.7 percent metro average. The typical house is valued at $1.2 million; again, one of the more expensive markets in the state.

Self Storage Stats

Storage would seem to be at a bit of a premium.

The typical resident has only 2.1 square feet of storage space, far less than the county average of 8.05 and barely one-quarter of the national average of 8 square feet.

Self-storage costs average $2.24 per square foot in the neighborhood, which currently has one self-storage facility and four more just across the expressway.

East Arlington, Zip Code 76010

The 76010 zip code located between Dallas and Fort Worth is one of the more diverse in the region, featuring supermercados, mosques, barbecue restaurants and Asian markets, as well as a sprawling General Motors plant that turns out sport-utility vehicles for 32 countries. The western edge of the zip code also includes the campus of the University of Texas at Arlington, a public institution with more than 45,000 students.

East Arlington is a fairly well-established suburb; it added about 4,000 people between 2010 and 2020, registering a 6.9 percent growth rate – less than the metro average of 17 percent, but still a respectable figure.

Because it’s one of the few suburbs in the metro area with relatively affordable housing, the zip code attracts a large number of working- and middle-class families, who make up 69.3 percent of households.

Its median household income of $38,461 is among the lowest in the Dallas-Fort Worth metro.

Housing Stats

The neighborhood has a considerably number of apartments;

single-family detached homes make up only 42.7 percent of housing units, considerably less than the metro average of 63.3 percent. Only 34.1 percent of residents are homeowners. Perhaps because the costs of living are lower than elsewhere in the metro area, people tend to stay put; 83.4 percent of residents have lived in the same place for a year or more, according to the 2016-20 American Community Survey.

The median value of a home in the zip code is $218,200, slightly less than the $236,200 median for the Dallas-Fort Worth metro.

Self Storage Stats 

There’s room for self-storage units in East Arlington.

The average resident of the zip code has access to 5.6 square feet of self-storage space, less than the
metro average of 7.05 square feet.

Self-storage is also among the least-expensive in the metro, averaging $1.77 per square foot, on a par with the state average of $1.67 and considerably less expensive than the $2.15 national average for a square foot.

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