Homebuying Trends in Arkansas for Moderate-Income Households in the Last 5 Years

Arkansas’s housing market underwent significant changes from 2018 through 2023, especially for homebuyers earning under $250,000 per year – essentially the vast majority of households in the state. This period saw surging home prices, shifting migration patterns, and evolving buyer behaviors. Below, we examine owner-occupied home purchase trends in Arkansas, what types of properties budget-conscious buyers are choosing, how buyer behavior (upsizing, downsizing, relocating) has changed, regional differences within the state, and how the 2018–2023 trends compare to the previous decade (2008–2017). 

Arkansas Housing Market Overview (2018–2023) for Sub-$250K Households

Dramatic Price Increases

Arkansas home prices rose dramatically from the late 2010s into the early 2020s, outpacing income growth. In 2017, the estimated median property value in Arkansas was around $129,900 – one of the lowest in the nation. By 2022, the median value of owner-occupied homes had climbed into the mid-$170,000s, and as of mid-2024 the median list price in Arkansas hit about $300,000.

This represents roughly a 9% average annual price increase over five years – markedly higher than the growth of household incomes (around 5% per year in Arkansas during the same period). In short, home prices in 2018–2023 far outstripped wage gains, creating affordability challenges for typical buyers.

Income Context

For context, Arkansas’s median household income is only about $49,500 (among the lowest in the U.S.), and even the median family income of homeowners is around $78,000. Thus, nearly all local homebuyers fall under the $250k income mark, and rising prices have stretched the budgets of these moderate-income households.

Rollercoaster Sales Volume

Home sales volume experienced a rollercoaster during 2018–2023. In the late 2010s, Arkansas’s housing market was stable with modest growth in sales. For example, Northwest Arkansas (one of the state’s hottest markets) saw unit sales increase about 1% in 2018 and 6% in 2019.

When the COVID-19 pandemic hit in 2020, ultra-low mortgage rates and shifting housing needs (like remote work) unleashed a homebuying boom. Home sales spiked by double digits in 2020; Northwest Arkansas saw a 12.8% jump in sales that year and similar strong demand played out statewide.

Buyers rushed to lock in 3% mortgage rates and gain more space, leading to bidding wars even in historically affordable Arkansas. This surge continued into early 2021, with sales up again (Northwest Arkansas saw +2.4% in 2021) and prices soaring. By mid-2022, the median sale price in Arkansas had reached about $252,000, up 12.4% year-over-year – a striking appreciation for a state known for low home prices.

The Cooling Period

However, by 2022–2023 the market began cooling as interest rates rose sharply. The Federal Reserve’s inflation-fighting rate hikes pushed mortgage rates to ~7%, dampening buyer demand. Statewide home sales slowed. In 2022, total transactions fell from their 2021 peak; by October 2022 the number of houses sold in Arkansas was down 24.6% compared to a year earlier.

This cooldown intensified in 2023: Northwest Arkansas, for instance, saw home sales drop 10–11% in 2022 and again in 2023 after the pandemic boom years. Price growth also finally tempered. By late 2023, prices in some Arkansas markets leveled off or dipped slightly – e.g. the average single-family home price in Benton County (NW Arkansas) in H2 2023 was $420,144, about 0.6% lower than six months prior.

Statewide, as of early 2024, Arkansas home prices were growing in the low single-digits annually (~5% year-on-year), a much slower pace than the double-digit jumps seen in 2020–2022. The number of homes sold in early 2024 was still running below the previous year (down ~5–6% year-over-year).

In summary, 2018–2021 was a period of escalating sales and prices for Arkansas housing, culminating in an affordability crunch by 2022, after which higher interest rates brought the market back to a cooler, more balanced state by 2023.

Comparative Affordability

Notably, through this period Arkansas remained one of the most affordable housing markets in the country despite the price increases. In mid-2022, the average Arkansas home price (~$178K) was the third-lowest of any state (roughly 50% of the U.S. average home price).

Thanks to lower prices and also relatively low property taxes (Arkansas ranks among the top 10 states for lowest property tax rates), the state’s affordability attracted many buyers. Arkansas led the nation in inbound migration in 2021, with about 44% more people moving into the state than leaving. In 2022 that trend continued – Arkansas saw ~42% more inbound movers than outbound, one of the highest net migration rates in the U.S.

Many of these newcomers were likely drawn by Arkansas’s cheaper housing and cost of living compared to pricier regions. This influx of new residents provided a steady stream of demand, especially in growing job hubs (like Northwest Arkansas and Little Rock), even as local buyers struggled with rising costs.

What Types of Properties Are Budget-Conscious Buyers Purchasing?

Dominance of Single-Family Homes

The vast majority of Arkansas homebuyers – especially those on modest budgets – are purchasing single-family houses. Arkansas is a very homeowner-oriented, low-density state, and the housing stock reflects that. As of 2022, nearly 88% of owner-occupied units in Arkansas were 1-unit detached houses (traditional stand-alone single-family homes).

These include everything from older starter homes under 1,500 sq. ft. to newer suburban houses – the bread and butter of the market for middle-income buyers. Even during the 2018–2023 boom, most buyers under $250K income stayed focused on single-family homes, which offer land and privacy at relatively low prices by national standards.

Limited Market for Condos and Townhomes

Condos and townhomes represent only a tiny slice of Arkansas’s purchases. In 2022, only about 1.1% of Arkansas owner-occupied homes were 1-unit attached structures (townhouses), and less than 1% were in small multifamily buildings such as duplexes or condo complexes.

Unlike some states where condos are an affordable alternative for first-time buyers, Arkansas’s condo market is very limited – partly because single-family houses are plentiful and inexpensive in most areas. The exception is in a few urban pockets (like downtown Little Rock or Fayetteville) where condos exist, but even there, condos aren’t a major segment of budget buyers’ choices. Most Arkansans, if they can afford to buy, opt for a house with a yard.

Manufactured Housing as an Affordable Option

One notable category for budget-conscious buyers is manufactured housing (mobile homes). Manufactured homes are popular in rural and small-town Arkansas as an affordable path to homeownership. About 11% of owner-occupied homes in Arkansas are mobile homes or other manufactured units – one of the highest shares in the country.

These can often be purchased at far lower prices than site-built homes, which appeals to lower-income households (for example, a used double-wide mobile home on some acreage can cost well under the state’s median home price). During 2018–2023, manufactured homes continued to be an important option for many moderate-income buyers, particularly in rural counties and the Delta region where incomes are lower.

While new construction in Arkansas largely focused on traditional single-family houses, the presence of mobile homes in the existing stock provided a cheaper resale option. Budget buyers often had to choose between an older small house or a newer manufactured home in the same price range – a trade-off between construction type and perhaps location.

Property Size and Feature Trade-offs

Property size and features that buyers chose also reflected budget trade-offs. During the pandemic boom, Arkansas buyers on a budget looked for value: many first-time buyers and young families upsized from apartments to starter homes in the suburbs, seeking extra rooms and yards, since prices were (initially) affordable and interest rates were low.

By contrast, in 2022–2023 as affordability tightened, some buyers had to scale back expectations – purchasing smaller homes or homes needing renovation to make the numbers work. Statewide data showed that by late 2022, about 24% of listed homes were selling above asking price (indicating competitive bidding especially on the most attractive affordable listings), but also that average days on market remained low (around one month).

In practical terms, this meant a budget-conscious buyer often had to compromise on their wish list – for example, buying a 3-bedroom house with an older kitchen rather than a new build, or buying 20–30 minutes outside the city to get a lower price. Fixer-uppers and older homes became more acceptable to buyers who were priced out of brand-new homes.

Arkansas’s overall homeownership rate (about 66–67% in recent years) held fairly steady, suggesting that despite challenges, many households under $250K income did manage to buy homes – largely by focusing on the more affordable segments of the single-family market or choosing manufactured homes.

Buyer Behavior: Upsizing, Downsizing, and Relocating Trends

The Upsizing Trend

Homebuyer behavior in Arkansas from 2018 to 2023 showed several distinct trends. A key theme of the late 2010s and especially 2020–2021 was upsizing. With historically low interest rates and pandemic-era lifestyle shifts, many Arkansas buyers sought to upgrade to larger homes.

Families that had outgrown a starter home or renters with stable jobs often jumped at the opportunity to buy bigger properties when 30-year mortgage rates fell below 3% in 2020–2021. During that time, move-up buyers (existing homeowners buying a larger or more expensive home) were active in the market.

For example, a family in Little Rock earning under $250K might have sold a 1,500 sq. ft. house and purchased a 2,500 sq. ft. home in a newer subdivision to gain extra bedrooms and an office for remote work. This upsizing trend was aided by Arkansas’s relative affordability – moderate-income households could still reasonably afford a spacious home (at least before 2022’s rate increases).

Indeed, the average sale price in Northwest Arkansas soared to over $400,000 by 2023, driven partly by locals upsizing and newcomers buying in that booming area. Many buyers stretched their budgets knowing the monthly payments were manageable at low interest rates.

Downsizing Dynamics

Conversely, downsizing became a secondary trend, primarily among older Arkansans. The 55+ demographic has a high homeownership rate (around 78% of Arkansans 55 and over own their home), and some of these older homeowners looked to downsize in this period.

As home values climbed, empty nesters and retirees saw a chance to sell larger homes at a profit and buy smaller, easier-to-maintain properties. Some moved from a big family house on acreage to a patio home or a condo (where available) to reduce upkeep. Others relocated to be closer to family or healthcare facilities.

That said, downsizing was a less prominent force than upsizing statewide – partly because Arkansas’s cost of living (and property taxes) are low, so there’s less financial pressure for retirees to sell. Many older homeowners opted to age in place. Still, where downsizing did occur, it often freed up a larger suburban house that was quickly snapped up by a younger family (illustrating the cycle of upsizing and downsizing between generations).

Intrastate Migration Patterns

Relocation within the state also played a role. Arkansas has diverse regions, and during 2018–2023, migration patterns emerged between urban, suburban, and rural areas. One clear pattern was movement toward Northwest Arkansas, the state’s economic powerhouse.

The Fayetteville–Springdale–Rogers area (including Bentonville) saw strong job growth (e.g. Walmart HQ expansion, tech startups, university jobs) and became a magnet for both out-of-state transplants and Arkansans from other regions. A family from the Arkansas Delta (eastern Arkansas) or a small town might relocate to NW Arkansas for better opportunities, bringing their homebuying activity to that region.

Similarly, the Little Rock metro (Central Arkansas) attracted people from rural counties who sought more urban amenities or employment – they might move from a farm county to a suburban Little Rock home. The data on net migration supports this urbanward trend: Arkansas’s population growth in 2018–2022 was largely concentrated in the northwest and central urban counties, while some rural counties lost population.

Rural Relocation During the Pandemic

At the same time, some Arkansans relocated out of the cities into more rural settings during the pandemic, thanks to remote work. Nationally, 2020–2021 saw many city dwellers move to less dense areas. In Arkansas, this was reflected by some buyers leaving Little Rock or Bentonville to purchase homes in exurban or country locations where they could get more space (and perhaps avoid perceived pandemic risks in crowded areas).

However, given Arkansas cities are not very large or dense to begin with, this trend was modest. More significant were people moving to Arkansas from out of state: remote workers from high-cost areas (like California or the Northeast) who, freed from office ties, bought homes in Arkansas’s scenic areas.

For instance, someone earning a West Coast salary under $250K might buy a house on Beaver Lake or a home in the Ozark Mountains, getting far more for their money. Real estate agents noted Arkansas’s influx of remote workers and retirees from expensive markets during 2020–22, contributing to demand in places like Bella Vista, Hot Springs, and Mountain Home. This fed into the upsizing trend as well – many newcomers bought larger or nicer homes than locals typically would, which sometimes priced out local first-time buyers.

Second Home Purchases

Finally, purchasing second homes remained a relatively small part of Arkansas’s market, but it did see a brief uptick. Nationally, vacation-home sales surged in 2020 and 2021 (U.S. vacation home mortgage applications hit record highs). Arkansas, with its lakes, rivers, and mountains, attracted some second-home interest during that boom.

Scenic spots like the Hot Springs area (Lake Hamilton), Beaver Lake, and Eureka Springs saw increased purchases of cabins, lake houses, and cottages by both Arkansans and out-of-state buyers in 2020–21. However, this trend cooled significantly by 2022–2023. Demand for vacation homes plunged as mortgage rates for second homes climbed even higher than primary mortgages and remote work became less universal.

Nationally, the number of mortgages for second homes in 2023 was 65% lower than in 2021 – a steep drop – and 2024 was on track to be another slow year for vacation-home buying. In Arkansas, that meant the pandemic-era flurry of lake house purchases subsided. By 2023, most moderate-income buyers were focusing on primary residences, not second homes, given the cost pressures. Only the more affluent (above our $250k income cutoff) continued to actively buy vacation properties.

Overall, the dominant behaviors for Arkansas homebuyers under $250k were either moving up to a primary home that better fits their needs, or relocating to the parts of the state with more opportunities, rather than investing in secondary homes.

Regional Differences: Urban vs. Rural, Northwest Arkansas vs. the Delta

Northwest Arkansas: Exceptional Growth

Homebuying trends in Arkansas have varied widely by region. The state’s geography includes booming metro areas, rural farming communities, highlands, and delta wetlands – each with distinct housing markets. Regional disparities became more pronounced from 2018 to 2023 in terms of price growth, buyer demand, and the types of buyers active.

Northwest Arkansas (NWA) – encompassing Benton and Washington counties and cities like Bentonville, Rogers, Springdale, and Fayetteville – was the standout region. NWA experienced a housing boom of unprecedented scale for Arkansas standards. From the late 2010s through 2022, this region saw double-digit annual price gains and record sales.

In fact, at one point in 2022, the Fayetteville–Springdale–Rogers metro’s home prices were up 31.9% year-over-year, ranking it among the fastest appreciating markets in the nation. Over a five-year span, the average home price in Benton and Washington counties jumped by over 50% (roughly 55% increase from 2016 to 2021).

This explosive growth was driven by strong job creation (Walmart’s headquarters and vendors, the University of Arkansas, Tyson Foods, JB Hunt and a growing tech scene), population inflows, and a shortage of housing supply. Buyers in NWA increasingly included transplants from out of state and higher-income professionals, which pushed prices up.

By 2023 the average sale price in NWA exceeded $400K, far above the state’s average. Households under $250K income could still buy in NWA, but they often had to target smaller homes or outlying towns, given the competition and price surge in the immediate Bentonville area. New construction in NWA was brisk (lots of new subdivisions), yet it struggled to keep up with demand. Even by mid-2023, inventory in NWA remained tight by historical standards, though it improved from the extreme lows of 2021.

Eastern Arkansas Delta: Stagnant Market

In contrast, the Eastern Arkansas Delta region (the flat agricultural counties along the Mississippi River) saw much more subdued activity. This region – including towns like Helena-West Helena, Forrest City, and Dumas – has faced long-term economic challenges and population loss.

From 2018 to 2023, many Delta counties continued to lose residents, meaning less homebuying demand. Home prices in these areas remained very low (often the median home values are under $100,000). There was no pandemic price spike in the Delta like in NWA; any increases were modest and largely driven by inflation in construction costs rather than a hot market.

Buyers in the Delta were often local residents or retirees; there was little influx of new buyers from elsewhere. Additionally, vacant housing and low sales volume characterize these counties. For budget-conscious buyers, the Delta offered the cheapest real estate in Arkansas, but the trade-off was limited jobs and amenities.

Some investment buyers did snag super-cheap properties there for rentals or speculation, but on the whole the Delta housing market stayed sluggish and flat, a world apart from Northwest Arkansas’s frenzy.

Central Arkansas: Moderate Growth

Central Arkansas, anchored by the Little Rock metro (Pulaski County and surrounding counties), represented a middle ground. Little Rock, North Little Rock, Conway, Benton/Bryant – these areas had steady, moderate growth in 2018–2023.

Home prices in Central Arkansas did rise (the median sale price in the Little Rock area hovered in the mid-$200s by 2023, up from low-$200s in 2018), but not as dramatically as in NWA. The buyer mix in Central Arkansas included a lot of first-time buyers and move-up local buyers taking advantage of low rates to move to larger homes in suburban neighborhoods like west Little Rock, Cabot, or Maumelle.

The region also saw some in-state migration (folks from rural south Arkansas moving to the capital region). Inventory in 2020–21 got tight here too, and multiple-offer situations were common for nice homes under $300K. By late 2022, Central Arkansas felt the cooling effect of higher rates – sales slowed and price growth leveled off.

For example, the average house price in Little Rock was around $235K in early 2023, up ~11% year-over-year, indicating continued appreciation but at a pace that was beginning to ease. Urban vs. suburban dynamics also showed up: within Little Rock, some buyers moved out to suburban fringes for larger lots (a mild pandemic-related decentralization), while downtown condos and historic neighborhoods saw less demand until 2023 when urban living started to bounce back.

Rural Markets Outside the Delta

In the rural parts of the state beyond the Delta, such as the Ozark Mountains in north Arkansas and the timber regions in the south, the trends varied by local conditions. North-central Arkansas (Ozark region) – counties like Baxter, Boone, Carroll – benefited from remote work and retirement migration.

These scenic areas (e.g. around Mountain Home or Eureka Springs) saw upticks in homebuying from people seeking a rural lifestyle. Lake and vacation home markets (Greers Ferry Lake, Bull Shoals, etc.) enjoyed the 2020–21 second-home wave, with many out-of-area buyers purchasing cabins or lakefront cottages (though again, this cooled after 2022).

South Arkansas (Timberlands) and western Arkansas (Fort Smith area) had relatively stable, slower markets tied to their local economies (energy, manufacturing). Fort Smith, the state’s second-largest city, had modest price growth and remained quite affordable; a family earning well under $100K could easily buy a home there.

The Urban-Rural Price Gap

One persistent regional factor is urban vs. rural price gaps. By 2023, a home in Benton or Washington County (NWA) might cost two to three times more than an equivalent home in the Delta or rural south. This gap widened over the 2018–2023 period.

For example, in July 2022 the average home in AR was ~$177K, but this average obscures that NWA averages were far higher (near $350K+ at that time) while many rural areas were ~$100K or less. This means opportunities for budget-conscious buyers differ by region: in rural areas, sub-$250k-income households had plenty of cheap options (sometimes under $80k for a livable home), whereas in NWA, those same households had to stretch or settle for entry-level townhomes (if available) or long commutes to find affordable homes.

Homeownership rates are actually highest in some rural parts of Arkansas (since home prices are so low), but the growth in new homeownership from 2018–2023 was centered in the urban regions where population grew.

In sum, Northwest Arkansas boomed with fast sales and escalating prices, Central Arkansas grew steadily, and many rural/Delta areas lagged or stayed flat. This divergence was more pronounced in 2018–2023 than the prior decade, as the pandemic housing craze disproportionately benefited high-growth regions. It underscores that Arkansas doesn’t have a single housing story but multiple sub-markets – and buyers’ experiences depended greatly on where they were looking.

2018–2023 vs. 2008–2017: How Do the Trends Compare?

Post-Recession Recovery vs. Pandemic Boom

Comparing the 2018–2023 period to the previous decade (2008–2017) highlights how unusual the recent market has been. The 2008–2017 era began with the housing crash and Great Recession, and Arkansas was not immune to those effects. In the late 2000s, home sales and prices in Arkansas slumped.

However, Arkansas did not have as extreme a boom-bust as some Sunbelt states – home values here declined only modestly around 2008–2010 because they hadn’t been overly inflated to begin with. Through the early 2010s, the state’s housing market was relatively sluggish and price growth was slow.

According to analysis of Census data, Arkansas’s home prices increased only around 15–20% total from 2005 to 2017 – essentially a few percent per year on average, which is a far cry from the rapid gains seen after 2018. Indeed, by 2017 the median home value (~$130K) was actually still below the 2005 level in inflation-adjusted terms for some parts of Arkansas.

The homeownership rate in Arkansas also dipped slightly in the aftermath of the recession (as it did nationally), then recovered to about 65–66% by the mid-2010s. The 2008–2017 decade was characterized by cautious recovery, with credit standards tight for a while and many younger households continuing to rent due to the tough job market in the late 2000s.

Stability vs. Volatility

In contrast, 2018–2023 was a period of boom and then shock. Before the pandemic, Arkansas’s market in 2018–2019 was actually resembling the stable growth of the mid-2010s – a continuation of that trajectory with low single-digit price increases and flat sales growth (e.g., Arkansas home sales were up just ~1% in 2018).

But the COVID-driven housing surge in 2020–2021 has no real analogue in the prior decade. During 2008–2017, there was no single year in Arkansas where home prices jumped 10%+ in one leap; during 2020–2022, double-digit appreciation became the norm. Likewise, the buyer frenzy – multiple offers, homes selling above asking – was rarely seen in the 2010s in Arkansas, but it became common in 2021.

Mortgage rates tell much of the story: in 2008–2017, 30-year rates ranged mostly between ~3.5% and 5%, gradually trending downward, which steadily improved affordability. By contrast, 2018–2023 saw rates first drop to historic lows (~2.7%) then spike to near 7% – a volatility that whipsawed the market and buyer behavior.

The latter half of 2022 (when rates surged) brought Arkansas’s housing activity almost to a halt compared to the frenzy earlier in the year – something not seen in the prior decade in such a compressed time frame.

Construction and Inventory Changes

Another difference is construction and inventory. In the aftermath of 2008, homebuilding in Arkansas slowed significantly; new housing supply was constrained throughout the 2010s. By the late 2010s, the state was underbuilding relative to population growth, but this wasn’t immediately obvious because demand was also lukewarm.

Fast forward to 2020–2023: the combination of underbuilt supply and sudden high demand led to severe inventory shortages. By 2021, Arkansas had only about 1–2 months of housing supply in many markets, whereas in 2015 it might have been 5–6 months (a balanced level).

Homebuilders ramped up construction in 2021–2022 (Arkansas issued ~13,300 building permits in the 12 months ending May 2024, up about 9.4% year-over-year), but they focused on certain regions and price points, and it will take time to alleviate the long-term shortage. In short, tight inventory and rapid swings in supply-demand balance were much more of an issue in 2018–2023 than in the prior decade.

Buyer Profile Shifts

Additionally, the profile of buyers shifted. The 2008–2017 period saw the rise of institutional investors nationally, but Arkansas being low-cost wasn’t a primary target then. By the 2020s, investors have become more interested in Arkansas properties (as discussed below), which wasn’t as evident in the earlier decade when most buyers were owner-occupants.

Also, mortgage lending standards in 2008–2017 were stricter (after the subprime crisis), whereas by the late 2010s some easing plus innovative financing (like low down payment programs) enabled more first-time buyers to enter by 2018–2021. The result: Arkansas’s homeownership rate actually ticked up slightly in recent years (around 66.5% in 2024), whereas it had sagged in the early 2010s post-recession.

The Role of Investors and Vacation-Home Buyers

Rising Investor Activity

While our focus is on owner-occupied purchases, it’s important to acknowledge the impact of investor buyers and vacation-home buyers in Arkansas during 2018–2023. These segments, though smaller, influenced the housing trends that owner-occupants faced.

Investor activity surged in the Arkansas market over this period. Both small-scale investors (individual landlords, flippers) and larger companies increasingly bought houses in Arkansas, attracted by low prices and decent rental yields. By 2022, investors were purchasing a significant share of the homes for sale – often outcompeting local first-time buyers on affordable properties.

According to CoreLogic data, the share of home purchases by investors in Arkansas rose from about 18% in 2019 to over 26% in 2022. By August 2023, investors accounted for an estimated 27.4% of Arkansas home sales – more than one in four sales. This is a notable jump compared to a decade prior when roughly one in five sales might have been to investors.

The trend in Arkansas mirrored the broader Sun Belt, where investors remained very active despite rising interest rates. Investors particularly targeted “low-priced” homes (the bottom third of the market) which have high rental ROI, aligning with Redfin’s finding that nationwide, investors bought a record 26% of America’s most affordable homes by late 2023.

In Arkansas, this meant entry-level houses in metro areas or rental properties in college towns were snapped up. For example, a 3-bed starter home in a North Little Rock neighborhood or a small house in Jonesboro might get bought by a rental investor to turn into a rental unit.

The high investor presence reduced inventory for owner-occupants in the under-$200k range and likely pushed prices upward in that segment. It’s a double-edged sword: on one hand, investor purchases can revitalize neglected properties (flips improving housing stock), but on the other hand, they create more competition for regular families and can convert would-be starter homes into rentals, delaying some renters’ path to homeownership.

Vacation Home Trends

Vacation home buyers as mentioned had a much smaller but noteworthy effect. During the 2020–2021 boom, the Ozarks and other recreational areas in Arkansas saw a bump in vacation-home purchases. This included both in-state residents buying second cabins and out-of-state buyers discovering Arkansas.

However, this was a short-lived phenomenon. By 2023, the vacation/second home market quieted down substantially, as evidenced by the large national drop in second-home mortgage originations (down 40% in 2023 vs 2022). In Arkansas, popular “second home” counties (like those with lots of lakeside vacation properties) likely saw a spike and then a normalization.

They were not among the top vacation-home markets nationally (Arkansas had no counties in NAR’s top rankings of vacation-home counties), but local agents did note the influx of interest in places like Bella Vista’s golf communities or lakefront homes in Hot Springs Village during the pandemic. Post-2021, with travel reopening and investment markets shifting, many would-be vacation home buyers either held off or turned to other investments.

References

• National Association of REALTORS® – Property Values By State from 2005-2017
• Talk Business & Politics – Northwest Arkansas home sales down double digits in 2023
• The Daily Record (Arkansas) – Northwest Arkansas leads the nation in home price gain despite high mortgages, declining sales
• Axios NW Arkansas – Northwest Arkansas’ housing market has cooled from 2022
• Innago – Arkansas Housing Market Trends & Forecast
• Clever Real Estate – The Arkansas Real Estate Market: 2025 Trends
• Arkansas Economic Development Commission – Arkansas Home Prices Ranked Third-Lowest in U.S.
• Redfin News – Investors Bought 26% of the Country’s Most Affordable Homes in the Fourth Quarter—the Highest Share on Record
• Skift – The Top 20 U.S. States Where Investors Are Buying More Homes
• Money – Why People Are Giving up on Buying Vacation Homes
• RealAdvisor – Arkansas Housing Market 2023 Report