Dallas–Fort Worth Economic Indicators October 1, 2024

Dallas-Fort Worth Economic Indicators

The Dallas−Fort Worth economy expanded in August, with employment bouncing back from the declines seen the prior two months. Average hourly earnings held steady but were above year-ago levels. Mass layoffs so far this year trail 2023 figures. Home sales dipped in August, and home prices held steady in the second quarter.

Labor market

Payrolls rebound strongly

In August, DFW employment increased 6.2 percent annualized after contracting for two months (Chart 1). Job growth was strong across the board, including in professional and business services, leisure and hospitality, information and financial services. Employment rose in every sector except government.

Hourly wages stable

DFW private hourly earnings were $34.57 in August, slightly down from July's figure of $34.90. The three-month average of hourly earnings ticked up to $34.92, remaining above the state average of $33.06. However, DFW private hourly earnings were slightly below the national average of $35.09 (Chart 2). Wage growth in DFW has slowed over the past year, with wages up 1.6 percent year over year in August, below the gains of 4.5 percent in Texas and 3.8 percent in the U.S.

Mass layoffs below 2023 levels

As of Sept. 30, 5,601 workers in the DFW metroplex were laid off under the Worker Adjustment and Retraining Notification (WARN) Act, accounting for 23 percent of the state's layoffs year to date (Chart 3). In 2023, 10,187 people were laid off, accounting for 42 percent of the state's total. If the current trend persists, layoffs in the metro would be on track to exceed 2021 and 2022 levels but would remain below 2023 and 2018-19 levels.

Housing

Existing-home sales dip

Housing demand weakened in August. DFW existing-home sales declined 3.8 percent after rising in July (Chart 4). Statewide, sales dropped 4.3 percent, while they fell 2.5 percent nationally. Existing-home inventories remained flat at 3.5 months in DFW, while they increased slightly to 4.4 months in the state and 3.8 months in the U.S.

Home prices flat in second quarter

Home prices in DFW steadied in the second quarter, according to recently released data from the Federal Housing Finance Agency. Prices ticked up 0.2 percent in Dallas but dipped 0.9 percent in Fort Worth compared with the first quarter. Meanwhile, prices rose 0.2 percent in Texas and 0.9 percent in the U.S. over the same period. Year over year, home prices were up 3.9 percent in Dallas, 1.3 percent in Fort Worth and 2.6 percent in Texas, all lower than the nation's 5.7 percent increase (Chart 5). Higher homebuilding activity has buoyed the supply of new homes for sale in Texas, keeping price appreciation muted in the state and its metros this year.