Did you see the Dallas Fed’s Latest Texas Employment Forecast: Permitting report dated December 11, 2025? I found it particularly insightful because it combines the Federal Reserve’s perspective on unemployment and leading economic indicators with a focus on how permitting may be impacted in Texas throughout 2026. Here’s a quick snapshot of what the Dallas Fed is signaling for the year ahead:
What the December 11, 2025, Dallas Fed Report Is Signaling for 2026
Key takeaways from the report include:
- Texas’ job growth slowing to approximately 0.9%, well below the long-term 2.0% trend
- Private-sector weakness with job losses in:
- professional and business services
- financial services
- manufacturing
- oil and gas
- information services
- The government sector standing out as the only clear area of strength
- Declining well permits, cooling in private real estate and energy investment
- Mixed metro performance: Houston growing, Dallas flat, San Antonio declining, and El Paso showing strength
For contractors, architects, and project owners, it’s easy to get tripped up by headlines that suggest the market may be slowing. Over the years, I’ve written extensively about one consistent truth in construction: regardless of whether the economy is hot, lukewarm, or cooling, obtaining building permits in a timely manner is crucial to project success. That reality will be especially true in 2026.
Permits pulled on time allow contractors to start construction according to schedule, keep their customers satisfied, and help owners become operational and profitable sooner. In tighter or more selective markets, delays are even less forgiving.
How do I know this to be true? During the pandemic, a homebuilder client shared how frustrated they were with permitting delays that put multiple projects behind schedule and strained their finances. PermitUsNow worked closely with agencies to help them. Fast forward to 2025, and with fewer buyers in the market, that same builder told us that timely permitting makes a difference with their projects penciling out.
The market may change, but the math does not.
As a contractor or architect, you can choose to succumb to economic narratives or you can say, “Here’s our plan to succeed based on what we can control.” And one of the most controllable variables in construction is how well permitting is managed.
Whether the market is cooling, steady, or strong, permits remain the long pole in the tent. They determine when you can break ground, when inspections occur, and when your project can open its doors.
To support your success in 2026, here are five permitting tips to consider and implement:
- Engage permitting expertise early in design and preconstruction
- Anticipate jurisdiction-specific requirements to mitigate risks
- Submit complete and coordinated packages
- Communicate proactively with plan reviewers
- Treat plan reviewers and inspectors professionally
No matter what the market brings, one thing remains constant: you can’t build without a permit and timing matters. If you have questions about permitting as you plan your 2026 construction projects, visit PermitUsNow.com or call us at 1-844-PERMIT-4.
Summary
The Dallas Fed’s Latest Texas Employment Forecast: Permitting report, released December 11, 2025, highlights a slowing job growth environment in Texas for 2026, with private-sector weakness in professional services, finance, manufacturing, oil and gas, and information industries. The government sector stands out as the primary area of strength, while certain metro areas, such as Houston and El Paso, show mixed performance. A key signal from the report is declining well permits and cooling investment in private real estate and energy, emphasizing the critical role permitting plays in project success.
For contractors, architects, and project owners, timely permitting remains a controllable variable that can make or break construction schedules, regardless of economic conditions. The article provides practical tips to navigate permitting efficiently, including engaging permitting expertise early, anticipating jurisdiction-specific requirements, submitting complete packages, communicating proactively with reviewers, and maintaining professional relationships with inspectors. Ultimately, the report underscores that while the market may fluctuate, proper permitting management is essential for timely project delivery and operational success in 2026.
