The city of Dallas just got demoted.
For the first time in three years, Dallas is not listed as one of the top 10 economies in the U.S., according to the Milken Institute’s annual report. Between 2024 and 2025, the Dallas-Plano-Irving area dropped from eighth place to a lousy No. 19.
Just two years ago we nearly broke the top five, coming in at No. 6 — surely it would have taken something dramatic to drop Big D 13 spots in two years.
The Milken Institute evaluates cities’ performance and advancements through 13 metrics that fall under three categories: labor market performance, high-tech impact and access to economic opportunity. It seems that Dallas’ Achilles heel on this scale is the same as many other cities experiencing the kind of rapid population growth Dallas and Collin counties have recorded: access to affordable housing.
The report points to the COVID-19 pandemic as the hitch in the nation's housing supply and demand issue, something that has resulted in homeowners spending a larger percentage of their wages on housing across small and large metros.
“Former top performers with low housing affordability, such as Dallas-Plano-Irving, find themselves among Tier 2 large metros in this year’s ranking, making this the tier with the least-affordable housing costs,” the report reads.
The report estimates that only 65% of residents in the Dallas area have access to affordable housing, an issue that was brought up time and time again in Dallas’ 2024 Bond, Forward Dallas and parking minimum conversations.
Dallas is still ranked higher than some other cities in the Lone Star State. The San Antonio-New Braunfels and Houston-Woodlands-Sugarland regions clinched No. 26 and No. 27 on the list, respectively. Fort Worth-Arlington came in at No. 30. But all three of those cities improved from their 2024 ratings, with San Antonio rising nine spots, Houston 35 and Fort Worth two.
The Austin-Round Rock area was the only Texas metro to crack Milken’s Top 10, maintaining a streak of more than a decade as one of the highest-performing cities in the U.S. The study lauds Austin’s thriving labor market and short and long-term career growth opportunities, but warns that the capital city seems to be slipping in the ranks in large part because of housing affordability.
Raleigh, North Carolina, claimed the overall best city award, benefiting from proximity to several top universities, a healthy employment market and housing affordability despite rapid population growth.
