Action still needed to address Northwest Arkansas housing issues, study shows

Yahoo

5 days ago

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The need for regional leaders to work together to address Northwest Arkansas' worsening housing crisis is more urgent than it was five years ago, according to a report released Tuesday.
The new study, 'Our Housing Future: A Call to Action for Northwest Arkansas,' builds on a 2019 report, finding that housing priority needs identified five years ago — a lack of regional housing policies, need for diverse housing options, limited choices for low-income households and weak links between housing and transportation — remain 'even more acute.'
05.27.25 NWA Housing Report
The 2025 report also identified a new need: more intentional planning beyond the region's four largest cities — Bentonville, Rogers, Springdale and Fayetteville.
Independent, nonpartisan national housing consultancy Enterprise Advisors wrote the report, which the Walton Family Foundation commissioned.
'While progress has been made in some areas, the challenges outlined in 2019 have only grown,' Walton Family Foundation Home Region Program Director Robert Burns said in a statement. 'Our region is at an important juncture, requiring action to ensure affordable and accessible housing for all residents.'
Northwest Arkansas, one of the 20 fastest-growing metropolitan areas in the country, is expected to have more than 1 million residents by 2050, according to the Arkansas Economic Development Institute.
The region is home to Fortune 500 companies like J.B. Hunt, Tyson Foods and Walmart, which unveiled its new 350-acre Bentonville campus in January. Northwest Arkansas' economic development has spurred population growth that has outpaced housing availability, according to the report.
The University of Arkansas Center for Business and Economic Research reported a 70.9% increase in home prices over a five-year period, significantly higher than price increases in peer regions.
According to U.S. Census data, between 2017 and 2022, median rent increased 30% in Rogers, 38% in Bentonville and 27% in Fayetteville, higher than the statewide increase of 22%.
Meanwhile, the area median income has increased by 35%, from $69,900 to $94,400 for a family of four. The most recent numbers released in May by the U.S. Department of Housing and Urban Development show the average median income is now $101,800.
While the four largest communities' populations keep growing, land is finite, according to the report. Several affordable housing developers have focused on smaller nearby towns as land costs skyrocket in cities. According to the 2024 Skyline Report, 61% of growth is happening outside Northwest Arkansas' four largest cities.
Critical actions identified in 2019 remain relevant today, according to the latest report, including establishing a regional housing vision, creating a regional housing trust fund, introducing development incentives to promote participation in regional and local housing initiatives, using publicly owned land for housing, and expanding and leveraging federal, state and local resources for affordable and workforce housing.
Though work remains, strides have been made, including in local land use reforms, the creation of a regional housing organization and the philanthropic investment in more than 1,000 attainable housing units, said Stacy Jurado-Miller, a WFF Home Region Program senior program officer.
Northwest Arkansas officials to address growth challenges with regional strategy
'But progress on the five critical actions identified in 2019 has been limited,' Jurado-Miller said in a press release. 'Challenges like clarity on legal parameters, limited funding, accessible resources, and unclear responsibility and accountability will require regional collaboration and a shared plan for creating the tools to build a better housing future.'
Limited progress was also made on previously identified critical actions because many resources were focused on pandemic response efforts and development costs have increased, according to the report. Parts of Benton County are also being rebuilt after being struck by large tornadoes last May.
Economic development has attracted people to Northwest Arkansas, but that trend could reverse if residents can't find affordable housing. Regional employers and employees have indicated housing 'is critical to economic competitiveness, workforce retention, and business growth,' according to the report. A recent nationwide survey found that 42% of employees have declined better job offers due to higher housing costs, the report states.
'Safe and affordable housing is critical infrastructure, essential to preserving the quality of life that makes Northwest Arkansas unique,' Burns said. 'Housing is a cornerstone of community stability and economic prosperity, and regional leaders will need to work together to adopt bold, collaborative measures to secure a sustainable future.'
The full report is available here.
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