Dallas−Fort Worth Economic Indicators

The Dallas−Fort Worth economy expanded in February. Employment grew at a solid pace, and unemployment remained steady. Consumer prices rose at a slower pace in March relative to February. Existing-home sales were flat, and home prices increased in the fourth quarter. DFW saw solid population growth in 2024 due to migration.

Labor market

DFW employment growth was strong at 2.7 percent (9,500 jobs) in February after a modest increase in January (Chart 1). During the three months ending in February, job gains were broad based across the major sectors, led by leisure and hospitality, professional and business services, and government. Employment only slipped in the information and other services sectors. The unemployment rate in DFW was unchanged at 3.8 percent in February.

Inflation

The 12-month change in the Dallas headline consumer price index (CPI) slowed to 1.4 percent in March from 2.7 percent in February (Chart 2). Year-over-year growth in core CPI, which excludes food and energy, decelerated to 1.6 percent in March. The 12-month change in food and shelter prices moved down to 1.5 percent and 3.0 percent, respectively, in March. In comparison, the year-over-year change in the U.S. headline CPI was 2.4 percent (2.8 percent in core) in March, with food prices showing faster growth at 2.9 percent compared with February.

Housing

Existing-home sales flat

Housing demand held steady in February. DFW existing-home sales were flat after falling sharply in January (Chart 3). Statewide, sales fell 1.6 percent in February, while they grew 4.2 percent nationally. Existing-home inventories in DFW ticked up to 4.3 months, while Texas inventories ticked up to 5.1 months.

Home prices increase in fourth quarter

Home prices in DFW rose in the fourth quarter, according to recently released data from the Federal Housing Finance Agency. Compared with the third quarter, prices rose 1.7 percent in Dallas and 1.9 percent in Fort Worth. Meanwhile, prices rose 1.2 percent in Texas and 1.4 percent in the U.S. over the same period. Year over year, home prices rose 3.0 percent in Dallas, 2.4 percent in Fort Worth and 2.3 percent in Texas, all still lower than the nation’s 4.5 percent increase (Chart 4).

DFW population rises

According to recently released census data, DFW’s population increased by 180,000 from July 2023 to July 2024 thanks to continuing strong migration. Domestic migration accounted for 14 percent of the increase (25,000 residents), while a strong 58 percent of the growth (103,000) was due to international migration (Chart 5). Population growth was 2.2 percent, slightly slower than the 2.4 percent in 2023 but faster than its long-term average of 1.9 percent. In Dallas, population growth moderated to 2.3 percent in 2024 from 2.6 percent in 2023; Fort Worth experienced a similar trend, with growth of 1.9 percent in 2024, slightly down from 2.1 percent in 2023. Population growth at the state level was stable at 1.8 percent in 2024.