With the rise of e-commerce, large corporations are looking for logistics and warehousing facilities. NWA’s location and infrastructure are attracting these companies to invest in the area.
Rising mortgage rates slowed home sales in 2023, but they’re expected to rebound this year. And with new construction projects planned, the NWA housing market is booming.
Affordability
As the region continues to attract residents, a robust job market makes housing affordable. Chance Schubert, board chair of the Northwest Arkansas Board of Realtors and owner of NextHome NWA Pro Realty in Bentonville, said the area’s strong employment growth in the information industry, coupled with reasonable home prices, have helped make the region attractive to newcomers.
In fact, the NWA metropolitan area ranked fourth in 2023 on a list of 10 U.S. metros with the most growth potential compiled by the National Association of Realtors (NAR). It was behind Raleigh, NC; Huntsville, AL; and Dallas, TX.
While rising mortgage rates appear to have slowed the area’s residential real estate market, Schubert says current homeowners have been reluctant to sell and move, waiting for a return of lower interest rates. Utility costs, such as electricity, water and gas, are also relatively low compared to the national average. Additionally, fitness facilities and recreational activities are affordable in the area, with most requiring minimal fees to join or use.
Growth
Despite rising mortgage rates, the NWA real estate market continues to grow. In January, homes sold for an average of $238,000. The price increase was driven by a scarcity of houses on the market and low supply of new constructions.
The area’s growth is also fueled by the presence of major employers such as Walmart and Tyson Foods, which have attracted other businesses to set up shop. The region is also renowned for its outdoor activities and art museums.
As a result, the NWA real estate market is expected to continue to thrive in the coming years. However, it is important to keep in mind that the region’s affordability advantage could lead to a housing bubble in the future. In addition, it is important to consider the impact of increasing property taxes on homeownership. Therefore, if you are planning to buy a home in the northwest arkansas housing market, you should do your homework first.
Amenities
Homebuyers in Northwest Arkansas have a wealth of options when it comes to real estate. There are many new neighborhoods with modern amenities that cater to different budgets and lifestyles. In addition, the region offers affordable property taxes and a strong job market.
Those looking to purchase property in Northwest Arkansas should consider their financial situation and long-term investment goals. It is also important to understand mortgage options and current interest rates. Obtaining pre-approval for a mortgage can help buyers determine their budget and prepare for the complexities of the process.
City planners in Northwest Arkansas can take a number of steps to increase housing affordability, including addressing restrictive zoning laws and time-consuming permitting processes. In addition, they can implement form-based coding elements and encourage housing that is more sustainable. These strategies can make a difference in the quality of life for residents and provide an opportunity to attract more investors. Moreover, they can support the growth of the local economy and increase opportunities for low-income households.
Diversity
Homebuyers and investors alike can find a diverse array of real estate opportunities in Northwest Arkansas. The region’s robust economy, affordable housing options, and population growth have made it a magnet for investment. The region’s diversified investments provide a solid foundation for long-term growth.
The region is also attracting a variety of new residents, thanks to its corporate allure, cultural attractions, and quality of life improvements. However, the surge of newcomers can pose challenges, especially when it comes to affordability and social integration.
The influx of newcomers can also push out essential workers, a phenomenon known as “gentrification.” To address this issue, FBCI-SGA is working with communities on the Aligned for Affordability roadmap, which helps them adopt land use policies that support sustainable economic growth and affordable housing. The roadmap also promotes mixed-income development, which can help create a more diverse community and improve the quality of life.