Dallas−Fort Worth Economic Indicators

Growth in the Dallas–Fort Worth economy was mixed. Payroll employment declined in February, after solid growth in January. The unemployment rate dipped in February. Average hourly earnings in DFW ticked up and remained higher than the state as well as year-ago levels. Existing-home sales fell in February, while office and industrial demand was positive in the first quarter.

Labor market

Employment declines in February

Employment in Dallas−Fort Worth fell an annualized 0.3 percent in February after rising 2.5 percent in January (Chart 1). Employment in Texas rose 0.3 percent in February. Dallas−Fort Worth job growth in the three months ending in February was 1.6 percent. Job gains over the three-month period were seen in natural resources and construction, professional and business services, leisure and hospitality, trade, transportation, and utilities, and manufacturing. Meanwhile, employment declined in the information, government, financial activities, education and health services, and other services sectors.

Unemployment dips

The Dallas−Fort Worth unemployment rate declined to 3.9 percent in February (Chart 2). The February jobless rate was lower than Texas’ jobless rate of 4.3 percent. The U.S. unemployment rate was 4.3 percent in March.

Earnings increase in February

The average nominal hourly wage in Dallas−Fort Worth edged up to $37.28 in February from $37.23 in January. Hourly wages in the region were above the state figure ($35.00) (Chart 3). The national average hourly wage ticked up to $37.38 in March, 3.5 percent above year-earlier levels. Year over year, hourly earnings were up 2.6 percent in the metro area, greater than the state’s 2.0 percent increase.

Housing

Existing-home sales decrease

Housing demand remained weak. DFW existing-home sales decreased 0.2 percent in February after falling 9.0 percent in January (Chart 4). Statewide, sales were flat in February, while they rose 1.7 percent nationally. Year over year, existing-home sales were down 6.2 percent in DFW, 1.6 percent statewide and 1.4 percent nationally.

Commercial Real Estate

Office real estate market rebounds

Demand for office space in Dallas–Fort Worth strengthened in first quarter 2026. Net absorption was positive at just under half a million square feet, lowering the vacancy rate to 21.8 percent, according to data from CBRE Econometric Advisors (Chart 5). Net asking rents in the metro increased from $24.70 per square foot per year in fourth quarter 2025 to $25.70 per square foot per year.

Industrial real estate demand remains strong

Positive momentum in industrial leasing continued in the first quarter. Net absorption was 12.2 million square feet, outpacing the fourth quarter and marking the highest net absorption since third quarter 2022 (Chart 6). The vacancy rate declined to 10.0 percent. The Dallas−Fort Worth region saw 8.7 million square feet added to the market in the first quarter.