The Economy in Dallas
We take a look at the economy in Dallas, offering general insights and unpacking main industries, positive factors, underlying issues, and predictions for the future.
The Dallas economy is robust and continues to grow – the region’s MSA GDP in 2021 was $593.3 billion.
24 Fortune 500 companies’ headquarters are located in Dallas, and businesses continue to expand or relocate to the city.
The airport, many universities creating a diverse and skilled workforce, and the lack of natural barriers to expansion support the Dallas, Texas economy.
A financial advisor can help you make the best decisions that take advantage of the economic opportunities in Dallas.
Understanding the Dallas economy
Forty years ago, the region that is now the Dallas-Fort Worth metroplex was home to fewer than five Fortune 500 company headquarters.
Today, 24 of these major players are headquartered in the area – a sure sign of the booming Dallas economy that has grown significantly faster than those of Chicago, Los Angeles, and New York. According to the Bureau of Economic Analysis, the Dallas-Fort Worth- Arlington MSA GDP was $598.3 billion in 2021.
Not only was there less unemployment in Dallas than in any other metro among the 12 largest in the US through the pandemic but there also has been an influx of people to the area between 2021 and 2022. The Dallas-Fort Worth region welcomed 170,396 new residents in that period.
Unsurprisingly, the metro’s median income is a healthy $82,823 per year. In addition to attracting new residents, the region also benefits from more than 22 million annual visitors who spend $4.4 billion and generate a $7.2 billion economic impact.
If you live in the region or are considering moving there, it’s important that you understand the economy in Dallas. Knowing what’s happening with your city’s economy can help you make the best decisions for your money. You can get better control of your finances with the help of a trusted financial advisor.
What is the main industry driving the Dallas economy?
Business relocations and expansion are fueling the Dallas economy. The major industries in Dallas and Fort Worth include information technology, financial services, healthcare, and defense.
Fort Worth’s manufacturing and transportation industries attract new residents (almost 19,000 between July 2021 and July 2022) and contracts, such as Bell Textron’s $1.3 billion US Army contract for assault aircraft.
What are the positives of the Dallas economy?
While there are challenges and issues facing the region, the Dallas economy remains strong as it continues to grow thanks to the brand the region is creating for itself.
Some of the most important positive elements include:
Transport links: The airport, railways, and highways are vitally important tourism and trade links and gateways for the region.
Central location: The city’s central location puts it in relatively easy reach of other cities and towns.
Lack of natural barriers: The lack of mountains, waterways, and other natural barriers makes city expansion easy.
Highly skilled, diverse workforce: The Dallas, Texas economy benefits from a diverse, highly skilled workforce, thanks to the region’s many universities and colleges.
What are the underlying issues in the Dallas economy?
The Dallas economy is promisingly robust, but this doesn’t mean it does face underlying issues and challenges. Even though the region’s population is increasing steadily, the unemployment rate is growing slowly.
As in almost every other city in the US, Dallas still struggles with the legacy of racial and other segregation and discrimination. This creates tension in the region as people of different races or other groups may struggle disproportionately to find work, which has a knock-on effect on the overall health of the city’s economy.
Additionally, the region may see a growing number of heat-related shutdowns that impact the economy as summers continue to get hotter and winters become colder.
The future of Dallas’ economy
The challenges so far have yet to be enough to slow the economy in Dallas, which continues to grow.
Given that Dallas-Fort Worth is set to become the only US metropolitan area that’s home to two cities with populations over 1 million in the next five years, it’s not surprising that some already consider this a booming city.
The bottom line
The growing Dallas, Texas economy is transforming the city into a major player in the American economy. The expansion and migration of businesses within various sectors to the region, as well as ongoing migration to the city, continue to create a wealth of opportunities.
Seek expert financial advice from an SEC-regulated financial advisor so you can make the most of your money and the economic opportunities of life in the region. Let Unbiased match you with an advisor today.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.