As you may already know, Northwest Arkansas Single-family has significantly increased over the past five years. Contributing factors have been population growth and a lack of inventory in multi- and single-family. Not only prospective tenants, but this has also exacerbated the affordability of owner-occupied homes. Let’s take an NWALook at the effect this has had on the four major cities in NWA: Bentonville, Fayetteville, Springdale, and Rogers.
Back in 2019, the single-family rental market in Northwest Arkansas was in its early stage of growth. Bentonville, Fayetteville, and Rogers had similar rental prices at $1300 per month for three-bedroom, two-bathroom homes, with square footage varying slightly. The cost per square foot (sqft) ranged from $0.79 to $0.87. In 2019, rental properties typically remained on the market for an average of 31 days.
Rising Demand and Prices
Fast forward to 2021, and the market saw substantial growth in rental prices and increased demand for single-family homes across Northwest Arkansas. On average, homes spent only 18 days on the market, a 42% reduction from 2019. Bentonville’s average price per sqft had risen to $0.91, with the median monthly rent at $1500, reflecting a 13.3% increase from 2019. Fayetteville and Rogers also saw their rental prices rise to $1495 and $1550 monthly, respectively. Meanwhile, Springdale experienced a more modest increase at $1350 per month.
In 2023, the single-family rental market in Northwest Arkansas continues to thrive. Rental median prices per sqft have continued to increase, with Bentonville at $1.06, Fayetteville at $1.15, Rogers at $1.03, and Springdale at $1.03. There are currently 202 single-family homes available for long-term leasing, and the median time on the market has risen to 27 days, indicating a shift from the previous year.
Comparatively speaking, Northwest Arkansas is significantly more affordable than the national median of $2330/ month for a single-family home. However, this is starting to change with large capital investor funds purchasing entire subdivisions in Northwest Arkansas, reducing inventory and affecting affordability for purchasing single-family homes and single-family rental rates.
At NWALook we expect the Northwest Arkansas rental market to decrease much like the rest of the nation that’s starting to “Cool” per the Washington Post.
Northwest Arkansas MLS Data
Predictions are only speculation and not a definite.