DALLAS – On Tuesday morning, the vibrant atmosphere of downtown Dallas made it difficult to believe that the state’s third-largest city is grappling with significant economic setbacks. Colorful street art, a remnant of the FIFA World Cup, brightened car-clogged streets, while employees sipped coffee as they entered the Whitacre Tower, a longstanding symbol of AT&T’s presence.
However, AT&T has announced plans to relocate its headquarters to a sprawling mega-campus in nearby Plano, a move that exemplifies the city’s ongoing challenges. The NHL’s Dallas Stars will follow suit, leaving the city’s core, while the Dallas Mavericks, albeit remaining within city limits, are also shifting to a location closer to the suburban edges.
These significant departures come after years of stagnation for Dallas. Last year marked the first population decline since the COVID-19 pandemic, with the city’s count dropping to 1.3 million residents after losing 1,800 individuals, contrasting sharply with the booming growth in surrounding regions and other major Texas cities.
“We’re a bug floating in a sink of water, and for the first time, the water didn’t rise, it went down a little bit,” remarked Dallas County Judge Clay Jenkins. “We need to confront the reality that the sink has a leak.”
As prominent companies exit downtown, the city’s role as the economic engine of the region appears to be at risk, with suburbs that were once dependent on Dallas now becoming the focal points of growth.
For years, Dallas has experienced a steady outflow of residents to neighboring suburbs, driven by perceptions of superior schools, affordable housing, safety, and family-friendly environments. Experts argue that a lack of sufficient housing development within the city has exacerbated this trend, warning that without significant efforts to enhance population growth, Dallas risks becoming a hollowed-out shell.
“If population decline continues, we’re likely to see vacant homes,” said Lloyd Potter, the state demographer. “Vacant properties lead to decreasing property values, which in turn diminishes the tax base. This is particularly problematic given the infrastructure demands Dallas faces.”
The recent string of high-profile departures has sparked a heated debate about the potential demolition of the iconic but controversial City Hall to stimulate redevelopment. This contentious issue underscores the pressures facing the city as it grapples with an uncertain future and the possibilities for revitalization.
Amid these challenges, there are signs of potential growth. The financial sector, dubbed “Y’all Street,” is expanding, while vibrant neighborhoods like the Bishop Arts District and Lower Greenville continue to thrive. Furthermore, the urban core is experiencing an influx of residents as developers convert vacant office buildings into apartments.
“I don’t believe we will become a city that hits rock bottom and has to start over,” asserted Council Member Paula Blackmon. “Dallas is a city that gets things done. We build.”
Business leaders and civic figures view the current losses as a temporary setback, yet they recognize the need for Dallas to enhance its competitiveness against neighboring suburbs to prevent further exodus.
“Dallas has undergone numerous reinventions throughout its history,” said Brad Cheves, head of the Dallas Regional Chamber. “We are at one of those pivotal moments now, and it’s an exciting time. We should embrace the change rather than fear it.”
The wave of departures began earlier this year when AT&T announced its move to a 2.3-million-square-foot campus in Plano, featuring a 280-foot tower reminiscent of the iconic Reunion Tower. Plano officials incentivized the move with a $20 million package.
Shortly after, the Dallas Stars declared their relocation to Plano, where they plan to redevelop a struggling suburban mall into a mixed-use development that will include an arena, apartments, shops, and restaurants. This strategic move places the Stars at the heart of a burgeoning area, according to CEO Brad Alberts.
“Our fan base is located in this direction, and we anticipate its growth,” Alberts noted.
While Dallas experienced a 2% population growth from 2020 to 2025, the Dallas-Fort Worth area surged by an impressive 10%, largely fueled by suburban expansion. Six cities in the region — Fort Worth, Celina, McKinney, Frisco, Denton, and Princeton — added more residents than Dallas during this period.
“Companies seek safe, secure environments for their employees, along with quality education for their children and a skilled workforce,” stated Plano Mayor John Muns, emphasizing the allure of suburban living.
Among Texas’ five largest cities, Dallas has seen the slowest population growth since 2020. In response, housing advocates are urging city officials to swiftly implement reforms that would facilitate the construction of denser, more affordable housing options, such as townhomes and duplexes, to accommodate the region’s expansion and lower housing costs.
In the past five years, Collin, Tarrant, and Denton counties have consistently permitted more homes per capita than Dallas County. Last year, jurisdictions in Dallas County authorized approximately 4.7 homes for every 1,000 residents, whereas Collin County’s figure stood at 14.7. The availability of undeveloped land on the urban periphery has allowed suburban areas to rapidly construct tens of thousands of single-family homes, with other counties also surpassing Dallas in apartment construction.
“To ensure our workforce can live where they work, it’s essential to simplify the process for building quality housing near jobs, transit, and schools,” declared Dallas City Council Member Chad West.
The city’s sluggish growth has already intensified its budget issues, potentially leaving a $51 million deficit in the upcoming budget. Without increased housing development, local governments may face escalating financial challenges, burdening residents and businesses with higher taxes to fund essential services.
“Without growth, the situation becomes dire for both businesses and homeowners,” Jenkins warned.
Many believe that revitalizing downtown Dallas could pave the way for more significant growth. As the city’s core, it offers better opportunities for housing development, with fewer objections from residents compared to neighborhoods dominated by single-family homes.
“Attracting young professionals and new residents to North Texas is crucial for maintaining a strong employment sector,” stated Jennifer Scripps, president and CEO of Downtown Dallas Inc., which oversees the area.
Since 2010, downtown Dallas has steadily increased its residential population, now home to approximately 16,000 residents, bolstered by the conversion of vacant office spaces into apartments. More than 1,100 new apartments have been created since 2020, with an additional 1,975 in development, according to CBRE Group Inc.
Some argue that a bold move is necessary to sustain this progress, focusing on the iconic City Hall, designed by renowned architect I.M. Pei, as a potential trigger for new development if demolished.
The City Council voted in June to halt repairs on City Hall and explore relocation options, estimating hundreds of millions of dollars in necessary repairs as the city confronts a budget crisis.
“We must prioritize the future of our city rather than cling to outdated government buildings from the past,” remarked Dallas Mayor Eric Johnson.
This situation presents an opportunity to revitalize a long-neglected section of downtown, which currently features numerous underutilized parking lots and vacant land.
“While City Hall is iconic, it is not historic,” Cheves noted.
Conversely, critics argue that demolishing the building without a clear plan for its replacement could be risky.
“This is our seat of government, and we shouldn’t treat it as disposable,” Blackmon responded.
Architect Zaida Basora, co-leader of the Save Dallas City Hall Coalition, expressed confidence that downtown can be revitalized without demolishing City Hall, noting that new developments could coexist with the existing structure.
“There is room for everyone,” Basora stated.
Despite the challenges, the Dallas name still holds significant value in attracting major businesses to the city, contributing to the growth of its financial sector. This has drawn major players like Goldman Sachs, which is expanding its presence in Uptown Dallas, and Morgan Stanley, which is considering a $1.3 billion office tower that would create 4,800 jobs within the city.
Proponents highlight Dallas’s unique advantages over the suburbs, including a vibrant arts scene and diverse neighborhoods.
“Dallas offers a variety of communities and neighborhoods that are unmatched elsewhere,” said Linda McMahon, executive director of the Dallas Economic Development Corporation.
There are also indications that the city’s population is beginning to rise again, with estimates from the North Central Texas Council of Governments projecting that the population has surpassed 1.4 million as of January 1.
Signs of vitality are evident throughout the city. The Kay Bailey Hutchison Convention Center is undergoing
