The Dallas-Fort Worth MSA is the largest in the state of Texas and 4th in the nation.[1] With its diverse and strong economy, DFW continues to be a tight market post-Covid with increased relocations and job growth. The labor force expanded an annualized 2.4 percent in Dallas and 2.1 percent in Fort Worth, in line with the state’s 2.3 percent rise.[2]
The unemployment rate for DFW was 3.2% as of December 2022 versus 3.5% nationally.[3] While in other markets layoffs have started in the finance sector, DFW has bucked this trend as this sector is up 6.2% from last year.[4] The DFW market continues to see migration attracting both employers and workers from regions such as California, New York, and Illinois that is a major contributor to its strong growth.[5] The large corporate relocations to DFW have slowed compared to 2021 but talks of an economic recession are pushing companies to start reviewing relocations quicker than planned.[6]
Effective rents in Ft. Worth grew 8.2% year-over-year while Dallas grew 8.8% versus 6.6% nationally. Dallas occupancy decreased to 94.3% compared to a year ago at 97.2%.[7] Fort Worth slightly decreased to 93.7%.[8] New supply is still on the horizon as Dallas expects 22,098 units which is an increase of 3,620 units from the prior year, and Fort Worth expects 8,476 new units which is an increase of 1,139 units from the prior year.[9],[10] Despite the new supply, the Dallas Fort Worth market continues to show signs of remaining strong in employment and housing going into 2023.
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References:
[1] www.census.gov
[2] www.dallasfed.org/research/indicators/dfw/2022/dfw2208.aspx
[3] https://ycharts.com/indicators/dallasfort_worth_tx_unemployment_rate_csa
[4] https://www.governing.com/work/in-face-of-recession-dallas-fort-worth-job-market-grows
[5] https://www.governing.com/work/in-face-of-recession-dallas-fort-worth-job-market-grows
[6] https://www.governing.com/work/in-face-of-recession-dallas-fort-worth-job-market-grows
[7] RealPage 4Q22 Dallas Market Report (Pg. 2)
[8] RealPage 4Q22 Fort-Worth/Arlington Market Report (Pg. 2)
[9] RealPage 4Q22 Dallas Market Report (Pg. 3)
[10] RealPage 4Q22 Fort-Worth/Arlington Market Report (Pg. 3)