Dallas, February 7, 2026
The Dallas-Plano-Irving metro area has dropped to 35th in the Milken Institute’s annual economic performance ranking from last year’s 19th place. Contributing factors include low housing affordability, with the area ranking 135th, and a slowdown in job growth, ranking 127th. Despite this decline, Dallas remains competitive among U.S. metro areas. The report indicates a need for strategic initiatives to address economic challenges and invigorate employment growth.
Dallas Falls in Milken’s Economic Ranking
Dallas-Plano-Irving Metro Area Drops to 35th Position
The Dallas-Plano-Irving metro area has seen a notable decline in the Milken Institute’s annual economic performance ranking, now positioned at 35th out of over 200 large U.S. metro areas. This drop from last year’s 19th place, and its previous top 10 standings, highlights a shift in the regional economic landscape. The Milken Institute’s report, released in late January, assesses metro areas based on critical factors like job growth, wage growth, and housing affordability.
Key Factors Contributing to the Decline
Several issues contributed to the decline in Dallas’ ranking:
- Housing Affordability: The metro area ranked 135th in housing affordability, showing only a slight improvement from 152nd the previous year, underscoring the ongoing challenges in providing affordable housing options.
- Employment Growth: Dallas placed 127th in short-term job growth, indicating a slowdown in employment opportunities compared to other regions.
- Sector Performance: The trade, transportation, and utilities sector experienced contraction, while professional and business services, as well as education and health segments, encountered challenges as well.
Comparative Performance
Despite this decline, Dallas remains a competitive player among large metro areas. Fayetteville, Arkansas, led the Milken Institute’s rankings, with cities such as Huntsville, Alabama; Charleston, South Carolina; Boise City, Idaho; and Raleigh, North Carolina, also showcasing strong performances. Notably, the neighboring Fort Worth-Arlington-Grapevine metro area ranked higher at 27th.
Broader Economic Context
The Milken Institute’s findings reflect wider economic trends influencing Dallas. The region’s economy has shown signs of cooling, raising concerns regarding housing affordability and job growth. Furthermore, projections from the Federal Reserve Bank of Dallas suggest minimal job gains for Texas in 2025, marking a shift from the state’s recent trends of consistent employment growth.
Conclusion
Although Dallas continues to perform competitively, the recent decline in the Milken Institute’s ranking emphasizes the necessity for strategic initiatives to tackle issues surrounding housing affordability and to invigorate employment growth. Active engagement and innovative solutions from local entrepreneurs and policymakers will be essential in preserving Dallas’ position in the national economic landscape.
Frequently Asked Questions (FAQ)
What is the Milken Institute’s Best-Performing Cities Index?
The Milken Institute’s Best-Performing Cities Index is an annual report that evaluates U.S. metro areas based on factors such as job growth, wage growth, and housing affordability to assess their economic performance.
Why did Dallas-Plano-Irving drop in the ranking?
The decline is attributed to challenges in housing affordability, with the metro area ranking 135th in this category, and a slowdown in employment growth, with a ranking of 127th in short-term job growth.
How does Dallas compare to other metro areas?
Despite the decline, Dallas remains competitive, ranking 35th among over 200 large U.S. metro areas. Neighboring Fort Worth-Arlington-Grapevine ranked 27th, ahead of Dallas.
What are the broader economic implications for Dallas?
The decline highlights the need for strategic initiatives to address housing affordability and stimulate employment growth to maintain Dallas’ competitive position among U.S. metro areas.
Key Features of the Article
| Feature | Description |
|---|---|
| Decline in Ranking | The Dallas-Plano-Irving metro area dropped to 35th place in the Milken Institute’s annual economic performance ranking. |
| Contributing Factors | Challenges in housing affordability and a slowdown in employment growth contributed to the decline. |
| Comparative Performance | Dallas remains competitive, ranking 35th among over 200 large U.S. metro areas, with Fort Worth-Arlington-Grapevine ranking 27th. |
| Broader Economic Context | The decline underscores the need for strategic initiatives to address housing affordability and stimulate employment growth. |
Deeper Dive: News & Info About This Topic
HERE Resources
Texas Tech Football Enhances 2026 Recruiting Class with New Signings
Vic Fangio’s Future with the Philadelphia Eagles in Question
Frisco, Flower Mound, and McKinney Rank Among Top 20 U.S. Career Hotspots
Top DFW Hospitals Shine in National Rankings
Dallas Faces Disruptions as Winter Storm Hits American Airlines
Dallas-Fort Worth Traffic: Major Highways in North Texas
Fort Worth’s Real Estate Boom: Major Developments Unfolding
Nothing Bundt Cakes Tops U.S. Restaurant Chains
Texas Secures Third Place in WalletHub’s Best States for Business
Flower Mound Named Texas’s Most Livable City
Author: STAFF HERE DALLAS WRITER
The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
