Dallas Economic Indicators

October 05, 2026

The Dallas economy continued to expand. Employment increased in the three months ending in August but was mixed across sectors. The unemployment rate ticked down and wages rose. Apartment rental rates increased slightly. Home sales fell but prices increased, while inventory remained unchanged.

Labor market

Employment increases in August

Dallas employment expanded an annualized 0.8 percent in August after a 0.6 percent increase the prior month. Texas employment rose 1.6 percent in August, slightly faster than the nation’s 1.2 percent increase. Since February 2020, employment in Dallas has risen 14.6 percent, outpacing the state (11.4 percent) and the nation (4.5 percent) (Chart 1).

Employment expansion mixed

Dallas payrolls have expanded an annualized 0.5 percent this year through August. Employment growth has been stronger recently, up an annualized 2.0 percent from May to August (Chart 2). The sectors with the fastest job growth during this period were professional and business services (6.8 percent), mining and construction (5.1 percent), and leisure and hospitality (2.2 percent). Meanwhile, employment dipped in information (1.6 percent), other services (1.2 percent), and government (0.4 percent), and held steady in the manufacturing and the trade, transportation and utilities sectors.

Unemployment rate declines

The Dallas unemployment rate ticked down to 4.2 percent in August (Chart 3). The jobless rate is higher in Texas (4.4 percent) but lower in the U.S. (4.1 percent). Dallas’ labor force expanded an annualized 2.5 percent in August and was up 0.3 percent over the past 12 months. The labor force in Texas changed little (0.1 percent) over the past year and contracted slightly nationally (0.6 percent).

Wages continue to increase

The three-month moving average of nominal hourly wages in Dallas increased to $37.84 in August (Chart 4). Earnings in Dallas remain higher than the state and are in line with the national figures. Year over year, wages in Dallas were up 4.0 percent in August, 4.5 percent in Texas and 3.2 percent in the U.S.

Residential Real Estate

Apartment rents holding steady

In August, year-over-year apartment rents were down 0.2 percent in Dallas–Fort Worth, 0.4 percent in Texas but up 2.2 percent nationally (Chart 5). The market-rate rent in Dallas was $1,500 in August, higher than the state ($1,300) but lower than the nation ($1,770). Rents in Dallas increased 0.2 percent in August, similar to Texas’ 0.2 percent and the nation’s 0.4 percent increase.

Home prices rise slightly, despite weak sales

Housing market activity remains weak, with existing-home sales falling for the third straight month in August. However, Dallas' median home price increased 1.2 percent in August (Chart 6). Year over year, median home prices ticked up 1.3 percent in Dallas but edged down 1.4 percent in Texas. Dallas home inventories were flat at 4.3 months in August, remaining unchanged from year ago.

NOTE: Data may not match previously published numbers due to revisions.

About Dallas Economic Indicators

Questions or suggestions can be addressed to Jackie Balanovsky. Dallas Economic Indicators publishes bimonthly after state and metro employment data are released.