10/31/2024 | Press release | Distributed by Public on 10/31/2024 10:29
October 31, 2024
DFW economy dashboard (September 2024) | |||
Job growth (annualized)
June-Sept. '24 |
Unemployment rate |
Avg. hourly earnings |
Avg. hourly earnings growth y/y |
3.8%
|
3.8% | $35.36 | 3.6% |
The Dallas−Fort Worth economy expanded in September, with employment closing out the third quarter with strong, broad-based growth. Core and headline inflation have cooled since August. Office market activity remained weak in the third quarter, while industrial absorption was solid.
In September, DFW employment grew an annualized 3.7 percent after expanding 8.8 percent in August (Chart 1). While employment grew robustly in Dallas at 4.8 percent in September, growth slowed in Fort Worth to 0.9 percent. Payrolls expanded 2.9 percent in Texas and 1.9 percent in the U.S.
DFW job growth strengthened in the third quarter to an annualized 3.8 percent following moderate gains in the second quarter (Chart 2). Leading the growth were professional and business services and financial activities. Job growth was strong at 3.9 percent (annualized) in the metro's largest sector: trade, transportation and utilities. Job growth rebounded in leisure and hospitality, information, and other services following contraction in the second quarter. All sectors experienced an expansion in the third quarter.
The 12-month change in the Dallas consumer price index (CPI) cooled from 3.2 percent headline (3.5 percent core) in August to 2.7 percent headline (3.2 percent core) in September (Chart 3). While year-over-year growth in food prices moved up to 2.8 percent, growth in shelter prices cooled slightly to 5.0 percent in September. In comparison, U.S. CPI grew 2.4 percent headline (3.3 percent core), with food prices showing slower growth at 2.3 percent year over year.
Demand for office space in DFW remained weak in the third quarter of 2024. Net absorption was negative at 860,000 square feet, pushing up the vacancy rate to a multiyear high of 26.4 percent, according to data from CBRE Research (Chart 4). The region had 59.6 million square feet of vacant office space at the end of the third quarter. Availability of sublease space dipped again to 9.0 million square feet, with Class A properties in the Far North Dallas and Las Colinas submarkets accounting for 40 percent of the metro area's sublease space. Construction activity stayed flat at 4.4 million square feet.
Positive momentum in industrial leasing continued in the third quarter. Net absorption was 5.2 million square feet, outpacing the first quarter but falling behind the second, according to CBRE (Chart 5). The vacancy rate remained stable at 9.8 percent and new space deliveries slowed down to 4.5 million square feet. Space under construction dropped from 14.3 million to 10.8 million square feet.
NOTE: Data may not match previously published numbers due to revisions.
Questions or suggestions can be addressed to Isabel Dhillon at [email protected]. Dallas-Fort Worth Economic Indicators is published every month after state and metro employment data are released.