Dallas–Fort Worth Economic Indicators January 7, 2025

Dallas−Fort Worth Economic Indicators

The Dallas−Fort Worth economy slowed in November. Employment fell slightly, and unemployment held steady. Prices rose at a slower pace. Existing-home sales picked up, and home prices were stable in the third quarter.

Labor market

Employment in DFW dipped in November after holding steady in October (Chart 1). Job growth was sluggish (1.0 percent, or 11,000 jobs) but broad based across the major sectors for the three months ending in November. The strongest gains were in financial activities and information, while employment slipped in manufacturing and professional and business services. The unemployment rate in DFW was unchanged at 4.0 percent in November.

Inflation

The 12-month change in the Dallas headline consumer price index (CPI) cooled to 1.9 percent (2.0 percent core) in November from 2.2 percent (2.7 percent core) in October (Chart 2). Year-over-year growth in food and shelter prices slowed to 1.0 percent and 3.8 percent, respectively, in November. In comparison, year-over-year U.S. headline CPI grew 2.7 percent (3.3 percent core), with food prices showing faster growth at 2.4 percent compared with October.

Housing

Existing-home sales rise

Housing demand grew at a slower pace in November. DFW existing-home sales increased 2.0 percent after rising strongly in October (Chart 3). Statewide, sales increased 0.7 percent in November, while they grew 4.8 percent nationally. According to business contacts, high mortgage rates and prices dampened affordability, and incentives such as discounting and rate buydowns remained prevalent. Home inventories in DFW stayed at 3.6 months, while Texas inventories ticked up to 4.4 months.

Home prices stable in third quarter

Home prices in DFW were flat in the third quarter, according to recently released data from the Federal Housing Finance Agency. Compared with the second quarter, prices rose 0.1 percent in Dallas and fell 0.3 percent in Fort Worth. Meanwhile, prices held steady in Texas and rose 0.7 percent in the U.S. over the same period. Year over year, home prices grew 1.2 percent in Dallas, 0.3 percent in Fort Worth and 1.4 percent in Texas, all lower than the nation's 4.3 percent increase (Chart 4).