Dallas’ long-running economic hot streak just got a chilly data point. The Dallas‑Plano‑Irving metro has dropped to 35th in the Milken Institute’s 2026 Best‑Performing Cities index, sliding from 19th a year earlier and tumbling out of the top 10 after two consecutive years in that elite tier. The fall reflects softer job and wage gains alongside rising housing costs that have eaten into the region’s long-touted affordability. Local nonprofits and residents say those trends are already reshaping daily choices and straining the safety net.
The latest index ranks Dallas‑Plano‑Irving 35th out of more than 200 large U.S. metro areas, based on a mix of short- and long-term job growth, wage gains, high-tech output and measures of access to opportunity, according to the Milken Institute. The report’s tables show how each component score feeds into the final ranking and allow cities to see exactly where they have gained or lost ground, underscoring how quickly shifts in labor markets and housing can move a metro up or down the list.
Where Dallas slid
The underlying numbers make clear where Dallas stumbled. The metro landed at 106th for 2023–24 job growth, 113th for 2023–24 wage growth and 127th for short-term job growth, while its housing-affordability ranking improved only modestly, from 152nd to 135th, as reported by The Dallas Morning News. Brock Smith, a Milken researcher, told the paper that short-term metrics can bounce around but added that “it’s still doing well overall.”
Local job signals
Regional labor data are flashing the same yellow light. The Federal Reserve Bank of Dallas is projecting roughly zero net job growth for Texas in 2025 and describes a “low-hiring, low-firing” environment that has already shown up in D‑FW payroll figures, according to the Federal Reserve Bank of Dallas. The bank points to cooling hiring in services and continued weakness in energy employment as key drivers of the slowdown. That mix of softer hiring and stubborn costs makes it tougher for household paychecks to keep ahead of everyday expenses.
Residents feel the squeeze
For families, the statistics translate into harsh tradeoffs. Sarah Burns of the North Texas Food Bank described to The Dallas Morning News how higher prices and a cooler job market are boxing people in. “Do I keep my lights on? Do I put gas in my car to get to work, or do I feed my family?” she said. Nonprofits report that demand for help is climbing even as donations and volunteer capacity remain stretched thin.
What leaders can do
Milken’s methodology puts a heavy weight on housing affordability and a balanced mix of jobs, arguing that both are critical to a metro’s long-term competitiveness. The report spells out those component scores and the policy levers available to local governments and civic groups, according to the Milken Institute. For Dallas’ business and civic leadership, the assignment is clear enough, even if it is not easy: reignite wage growth while expanding housing options for lower-income residents, or risk watching the region’s once-unquestioned economic edge continue to narrow.
.jpg){kind=link}