SPRINGDALE, Ark. — Arvest Bank and the University of Arkansas (U of A) released their latest Skyline Report from the first half of 2024, detailing further real estate growth in Northwest Arkansas.
Arvest, the U of A, and 400 business leaders in Northwest Arkansas celebrated 20 years of Skyline Reports at a conference on Thursday in Springdale.
"City councils and mayors are responsible for policy in our cities in Northwest Arkansas," Director of the Center for Business and Economic Research Mervin Jebaraj said. "We provide the data and analysis that they can use to make good policy."
In partnership with the Center for Business and Economic Research at the Sam M. Walton School of Business at the U of A, the Skyline Report provides information regarding real estate trends for commercial, residential, and multifamily properties in Northwest Arkansas.
The information allows investors, real estate developers, and homebuyers to understand the area better economically.
"It’s local information," Arvest Bank’s Executive Vice President and Loan Manager for Benton County Kelly Carlson said. "We have the developers providing the information. We have the university going out and counting individual residential lots, counting completed construction homes to have real-time data."
The data for the report is updated every six months.
20 years ago
According to the report, 20 years ago, there were 9.9 million square feet of leasable commercial space in Northwest Arkansas. That number has grown to 52.7 million square feet.
There were reportedly 15,700 units in 196 complexes in 2004 compared to today’s 55,300 units in 829 complexes.
Two decades ago, the report said there were 8,400 lots in active subdivisions versus the 22,000 lots in the report released Thursday.
With this growth over the last 20 years, the report found average home prices in Washington and Benton counties have gone up while vacancies have gone down.
In 2004, the report said the average price of a home in Washington County was $152,396. Now, that number has grown to $389,574.
Skyline also reported that in Benton County, the average price of a home 20 years ago was $151,327. Now, the average price of a home is $432,956.
Looking ahead
Conversations on Thursday were focused on how the area is going to help manage the rapid growth.
"We need a little bit of everything," Carlson said. "Whether that's industrial apartments, residential lots, retail, all vacancy rates are going down, and the demand for these residential units, multi-family homes are high right now."
Carlson said he understands the impact housing affordability has on a vast portion of the Northwest Arkansans
"I feel for our branch associates," Carlson said. "I feel for our teachers and our firefighters and our city officials that are having to commute, you know, 30-plus minutes to get to their job. So yes, affordable housing is something that Arvest is looking at.”
The conference focused on one city's efforts in particular. Jebaraj highlighted Rogers' new Unified Zoning Code, which simplifies requirements for new developments in the city.
Passed in July, the new zoning code reduces the number of zoning types from 66 to 14. The plan also looks at transit plans in conjunction with what it builds.
"What Rogers has done in terms of rezoning their entire city, gives them the opportunity to develop in such a way that they will become the downtown of Northwest Arkansas," Jebaraj said.
Jebaraj said cities throughout the area should look to Rogers for future development plans. He said the city is taking an active approach to housing affordability and lack of commercial spaces.
"Smart growth is, at its core, growth that maximizes livability and pride in your community, while at the same time, doing it in a way that's fiscally responsible," John McCurdy, Director of Community Development for the City of Rogers, said.
He said it is important to maintain the history and past of the city, while also looking toward the future.
"It's recognizing that some people want to live in a subdivision, some people want to live in a gated community, some people want to live in an upstairs loft over a commercial space in a historic downtown," McCurdy said. "And so providing greater variety, and then getting out of the way and minimizing the bureaucracy and the red tape required to get to a 'yes' on a development that we all know makes sense."
First half of 2024
The first six months of the year were highlighted from the previous year during the 20-year anniversary conference.
According to the report, 8.5% (4,799) more homes were sold in the first half of 2024 than from the year prior. The report said more homes than ever tracked before by Skyline were of new construction, 1,896.
Benton County median home prices rose, according to the report, while Washington County dipped slightly by 0.7% from last year.
Rent rates were up in Northwest Arkansas by 9% in the first half of 2024 compared to a year ago. According to the report, 11 new apartment complexes were added to the area in the first half of 2024.
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