Over the past decade, the region skyrocketed into national rankings, recognized for its job growth and high standards of living. That success creates new challenges that threaten to undermine the region’s affordable quality of life.
The Northwest Arkansas region has added about 250,000 new residents since the year 2000 . The rate of population growth has outpaced development, driving up demand, price and making housing—much less affordable housing—difficult to find. From 2010 to 2016, only 1 house was built for every 1.5 new households.
Because of this, the average cost of homes in our region has increased significantly over the past four years. A recent report by Skyline found that home prices continued to skyrocket in the first half of 2022 — up nearly 27% to an average of $385,821, compared with the same period in 2021. This means the median price for a single-family home in Northwest Arkansas grew faster than any other place in the U.S.[GU1]
In addition, there is not enough production of “entry level” homes. These include smaller single-family homes, townhouses, duplexes and small apartment buildings. In 2020, the market added just 65,000 entry-level homes across the United States, those smaller than 1,400 square feet, compared with roughly 400,000 a year in the late 1970s,