The Dallas-Fort Worth-Arlington metro area has an overall grade of B, ranking in the 50.9th percentile out of 50 US metros, with a composite score driven largely by its above-average labor demand and cost of living. The city's labor demand composite score of 5.21, combining a +0.57% employment growth rate and a +0.116% weekly hours deviation from its own trend, suggests genuine demand expansion. Additionally, its cost of living, with a PSF of $202/sqft and hourly earnings of $36.94, resulting in a ratio of 5.47, ranks in the 75th percentile for affordability.

Labor Demand

The employment growth rate of +0.57% and weekly hours deviation of +0.116% indicate a genuine demand expansion, as both jobs and hours worked are increasing. This combination signals that the city is experiencing a period of growth, with employers adding jobs and workers putting in more hours. The labor demand composite score of 5.21, ranking in the 66th percentile, further supports this interpretation.

Unemployment

The unemployment rate of 4.00% is below average, ranking in the 35th percentile, indicating a relatively tight labor market. This means that businesses may face challenges in hiring, as there are fewer unemployed workers available to fill open positions. As a result, companies may need to offer competitive wages to attract top talent.

Wage Growth

The year-over-year wage growth rate of +2.07% is below average, ranking in the 30th percentile, indicating moderate wage growth. This suggests that labor costs for employers are rising, but at a slower pace than in other cities. While this may help keep costs under control, it also means that workers may not see significant increases in their purchasing power.

Cost of Living

The city's cost of living, with a PSF of $202/sqft and hourly earnings of $36.94, resulting in a ratio of 5.47, ranks in the 75th percentile for affordability. This means that the city is relatively affordable compared to its peers, making it an attractive location for businesses looking to recruit talent without having to offer significant wage premiums. The fact that PSF is falling by -2.4% YoY further enhances the city's affordability.

Labor Force Growth

The civilian labor force is growing at a rate of +0.19% year-over-year, indicating a slowly expanding workforce supply. This suggests that the city's hiring capacity is increasing, albeit at a moderate pace. While this growth is positive, it may not be sufficient to meet the demands of rapidly expanding businesses.

Building Permits

The year-over-year change in building permits is -16.94%, indicating a tightening of the housing supply. This decline in permits suggests that the city's future affordability and workforce accommodation may be at risk, as the supply of new housing is not keeping pace with demand. This could lead to increased competition for available housing and higher costs for workers.

Days on Market

The current median days on market is 51 days, with a year-over-year increase of +2.0%. This indicates a relatively balanced market, where homes are selling at a moderate pace. For workers relocating to the city, this means that the housing market is neither extremely competitive nor overly accessible, providing a relatively stable environment for finding a home.

Office Economy

The city's professional and office worker share is 4.18, ranking in the 94th percentile, indicating a deep and talented pool of knowledge-economy workers. This makes the city an attractive location for businesses in the tech, finance, consulting, and HQ sectors, which require specialized skills and expertise. However, it may be less suited for industries with more industrial or logistics-oriented workforces.