The city of Dallas is no longer one of the top 10 best economies in the U.S., according to a report from the non-profit Milken Institute.
DALLAS — For the first time in three years, Dallas is not among the top ten strongest economies in the U.S., according to a report from the non-profit Milken Institute.
The study defines the Dallas area as including parts of Dallas and Collin counties, according to the study. Between 2024 and 2025, Dallas dropped from being ranked as the No. 8 strongest economy, to No. 19, according to the report. In 2023, Dallas was ranked No. 6.
Cities are ranked by the Milken Institute, a nonprofit, nonpartisan think tank focused on accelerating progress. The nonprofit considers “metropolitan areas'” effectiveness at promoting employment, wages and key industries that drive economic growth,” according to the 2025 report.
The think tank ranks the cities based on 13 metrics falling into three categories, labor market performance, high-tech impact and access to economic opportunities.
Dallas and other major metropolitan areas suffered in the rankings due to housing affordability, according to the Institute. Smaller metros, such as Raleigh, North Carolina, and Salt Lake City, Utah performed well in the rankings due to better housing options. according to the report.
“The rise of less populous areas comes as many large metros face severe housing affordability challenges,” the report reads. “Former top performers with low housing affordability such as Dallas-Plano-Irving also find themselves among Tier 2 large metros in this year’s ranking, making this the tier with the least-affordable housing costs.”
The best-performing city, Raleigh, North Carolina was lauded in the report for its good labor market, steady supply of skilled workers from nearby universities and strong population growth, according to the report.
The Fort Worth metro, which includes Arlington, went up slightly in the rankings, from 32 to 30, according to the report.