The issue I have had in the past with in-ground dahlias has been gophers (so sadly, they now all have to go into tripping-hazard gopher baskets
). I did have one spot in my garden where everything seemed to die, and that included a dahlia which I had there. We finally concluded that (although the top of the ground looked dry) the soil was too wet.
The discussion over on the site talk forum seems to have come to the conclusion that it is a perennial, also.