Between 2018 and 2023, Arkansas’s housing market didn’t follow just one path—it split along geographic lines. Urban hubs like Little Rock, Fayetteville, and Bentonville surged ahead, driven by job growth, new development, and rising demand. Home prices soared, and buyers scrambled to keep up. Meanwhile, many rural areas moved at a slower pace, with fewer sales and smaller price jumps. While owner-occupied homes led the market, second homes and rental investments also saw shifts, especially in scenic or tourism-friendly spots. The state’s real estate story isn’t one-size-fits-all—it’s a tale of two Arkansases.
Arkansas Housing Market Overview (2018–2023)
Home prices in Arkansas rose dramatically in the late 2010s and early 2020s. In 2017, the median property value in the state was only about $130,000 – among the lowest in the nation. By 2022, the median value of owner-occupied homes had climbed into the $170,000s, and by mid-2024 the median listing price was around $300,000. This represents a roughly 9% average annual increase in prices during 2018–2023, far outpacing income growth. Arkansas’s median household income is about $50,000, so housing costs grew much faster than wages, creating affordability challenges for many local buyers.
Sales Activity Fluctuations
Home sales activity followed a rollercoaster pattern. From 2018 into 2019, Arkansas saw steady homebuying growth as the economy was strong and interest rates were low. Record-low mortgage rates in 2020–2021 (30-year rates around 3%) unleashed a homebuying frenzy – many families jumped to buy homes or upgrade to larger houses.
The number of homes sold surged in 2020 (up ~13% in Northwest Arkansas, for example). 2021 saw continued high sales (slightly above 2020’s level) and price spikes statewide. However, by mid-2022, as inflation picked up and mortgage rates climbed rapidly, the market began to cool. Buyers faced higher monthly payments, and sales volumes dropped. Statewide, there were about 24% fewer homes sold in late 2022 compared to late 2021. This slowdown continued into 2023 – for example, Northwest Arkansas’s home sales fell over 10% in 2023 vs. 2022. Even so, prices remained high because inventory was still relatively low.
Homeownership Rates
Homeownership rates in Arkansas reflected these trends. After hovering in the mid-60% range through the 2010s, the rate spiked to nearly 69% in 2020 – a multi-decade high – as many renters became homeowners during the pandemic homebuying wave. It then eased back, staying around 66% in 2021–2023. In other words, the state’s overall homeownership didn’t change drastically long-term, but 2020 was an exceptional year when a burst of Arkansans bought homes.
Urban Areas: Growth Hotspots
Urban and suburban parts of Arkansas led the state’s housing boom. Northwest Arkansas (NWA) – the Fayetteville, Springdale, Rogers, Bentonville metro – was the standout region for growth. This fast-growing corner of the state saw unprecedented price increases and sales activity.
Northwest Arkansas Boom
At one point in 2022, the Fayetteville metro’s home prices were up 31.9% year-over-year, ranking it among the fastest-appreciating markets in the entire nation. Over the five-year span, the average home price in Benton and Washington counties jumped by over 50%. By 2023, the average sale price in NWA exceeded $400,000 – far above the state’s average. Homes in popular NWA cities like Bentonville and Fayetteville often drew multiple offers, and inventory struggled to keep up with demand.
Several factors drove this urban boom in Northwest Arkansas. The area enjoyed strong job creation (from companies like Walmart’s headquarters, Tyson Foods, JB Hunt, and a growing tech sector) and attracted many newcomers. Both out-of-state transplants and Arkansans from other regions moved into NWA for the economic opportunities, fueling housing demand. This influx included young professionals and families, many with higher incomes, which pushed prices up further. Even with a lot of new subdivisions being built, there were not enough homes for everyone who wanted to buy. By mid-2023, inventory in NWA remained tight by historical standards, although it improved slightly from the extreme lows of 2021.
Central Arkansas Growth
Central Arkansas (Little Rock metro) saw moderate but steady growth in its housing market. The Little Rock–North Little Rock–Conway area did not have the same explosive price gains as NWA, but it still experienced significant appreciation. Home prices in Central Arkansas rose from the low $200,000s in 2018 to the mid-$200,000s by 2023. For example, the average house price in the city of Little Rock was around $235,000 in early 2023, up ~11% from a year before.
Demand in central Arkansas was driven both by local buyers (first-time buyers and folks upgrading to larger homes) and by some in-state migration – people moving in from rural parts of southern Arkansas to the capital region for jobs or amenities.
During the 2020–2021 boom, Central Arkansas also faced a seller’s market: well-priced homes under $300K in suburbs like Cabot, Maumelle, or Bryant often got multiple offers. The frenzy cooled in late 2022 as interest rates rose – sales slowed and price growth leveled off. Within the metro, there was a brief pandemic-era preference for space: some buyers chose to move from the city center to outlying suburbs for larger yards. Downtown condos and urban townhouses in Little Rock saw less interest in 2020–21, but by 2023 urban living demand started to bounce back as remote work trends evolved.
Other Urban Centers
Other Arkansas cities showed mixed trends. Fort Smith (the state’s second-largest city, on the western border) had slow, modest growth. Its home prices remained quite affordable, rising only gently in 2018–2023 in line with the local manufacturing-based economy. Jonesboro in the northeast and Hot Springs in central Arkansas also saw respectable growth without overheating – these smaller metros benefited from low interest rates but didn’t have the same influx of new residents as NWA. Overall, urban and suburban counties gained population and homebuying demand, putting them on a very different trajectory than many rural areas.
Rural Areas: Slower Markets and Lower Prices
Away from the booming metros, rural Arkansas had a much quieter housing market. In fact, the gap between high-growth urban counties and slow-growth rural counties widened during 2018–2023.
The Delta Region Challenges
Eastern Arkansas – the Delta region along the Mississippi River – is a prime example. This area, including counties like Phillips, St. Francis, and Desha, has struggled with population loss for years. From 2018 to 2023, many Delta counties continued to lose residents, meaning fewer local buyers in the market. Home prices in the Delta stayed very low – in several counties, the median home value was under $100,000. Unlike Northwest Arkansas, there was no big pandemic price spike in these communities. Any price increases were modest and mostly due to general inflation in construction costs rather than true housing demand.
Housing inventory was plentiful in these areas (with many vacant houses), but sales were few. A family could buy a house for a bargain price in the Delta, but the trade-off was a lack of nearby jobs and amenities. In short, the Delta’s housing market remained sluggish and flat during 2018–2023, a world apart from Northwest Arkansas’s frenzy.
Other Rural Areas
Other rural counties around the state saw varying trends. Some sparsely populated counties in south and west Arkansas (forestry and farming regions) had stable but slow markets tied to local conditions. For instance, Cleveland County (south-central Arkansas, population ~8,000) had a median home value of around $123,000 in recent years and little price change over the period. Izard County (north-central Arkansas) similarly had a median value near $122,000. These values are far below the statewide median. Such rural counties typically saw minimal buyer competition – often, houses might sit on the market longer, and prices only edged up slowly if at all.
Remote Locations and Vacation Properties
Some rural areas actually benefited during the pandemic from people looking for remote retreats. In parts of the Ozark Mountains and other scenic areas, there were upticks in homebuying by both Arkansans and out-of-state newcomers seeking a quieter life. For example, Newton County (in the Ozarks, population ~7,000) saw a few remote workers or retirees purchase cabins and homesteads. However, these cases were relatively limited. Overall, Arkansas’s rural counties did not see a large inrush of new residents from the cities – partly because even the cities in Arkansas aren’t very crowded to begin with, so the “urban exodus” effect was modest.
One exception in rural trends was the market for vacation and lake homes. Arkansas has many lakes, rivers, and outdoor attractions. During 2020–2021, there was a brief surge in second-home purchases in scenic spots. Areas such as Hot Springs (Lake Hamilton), Eureka Springs, Beaver Lake, and Greers Ferry Lake saw increased interest in cabins and lake houses. Both Arkansans and out-of-state buyers bought vacation cottages during the pandemic boom, taking advantage of low mortgage rates to snag weekend getaways.
However, this trend was short-lived. By 2022–2023, vacation-home demand plunged as mortgage rates for second homes jumped (often even higher than primary home rates) and remote work became less universal. Nationally, the number of mortgages for second homes in 2023 was 65% lower than in 2021, and Arkansas reflected that pattern. The flurry of lake house purchases died down, and by 2023 most average buyers were focused on primary residences again.
Rural Homeownership Rates
Despite their slow growth, rural Arkansas boasts some of the highest homeownership rates in the state. In many small counties, over three-quarters of households own their home. For example, Izard County’s homeownership rate is about 77%. The reason is simple: homes are cheaper, so it’s easier for residents to buy instead of rent. A modest income can buy a decent house in these areas. However, because of limited new demand, rural homeownership numbers didn’t change much over 2018–2023 – most of the growth in new homebuyers happened in the urban counties where populations were rising.
Housing Types and Buyer Preferences
Single-Family Dominance
Across Arkansas, single-family houses are by far the most common type of home purchase. Most Arkansans prefer a traditional house with a yard if they can afford it. Condos and townhomes remain a tiny slice of the market, especially compared to some other states. In 2022, only about 1.1% of Arkansas owner-occupied homes were attached townhouses, and less than 1% were units in small apartment-style buildings (condos or duplexes).
This is partly because even in cities, single-family homes are relatively affordable and plentiful in Arkansas, so there hasn’t been as much push toward condo living. There are a few condo developments in downtown Little Rock or Fayetteville, but they represent a niche segment. For most first-time buyers, a condo wasn’t much cheaper than a small house, so they opted for the house if possible.
Manufactured Housing
One notable category in Arkansas is manufactured housing (mobile homes). About 11% of owner-occupied homes in Arkansas are mobile or manufactured homes – one of the highest shares in the country. In rural and small-town areas, buying a manufactured home on a piece of land is an affordable path to homeownership for many families. These homes cost much less than site-built houses.
During 2018–2023, manufactured homes remained an important option for moderate-income buyers, especially in lower-income regions like parts of the Delta. While new construction in growing cities focused on traditional houses, the resale market for mobile homes provided a cheaper alternative for those on tight budgets. In many cases, a buyer choosing between an older small brick house or a newer mobile home in the same price range had to weigh trade-offs (construction type, location, land size). But the prevalence of mobile homes helped keep homeownership achievable for some who might otherwise be priced out.
Upsizing and Downsizing Trends
Home sizes and features also shifted with buyer preferences. In 2020–2021, when mortgage rates hit record lows, many Arkansas buyers “upsized” – they took the opportunity to purchase larger homes. Families who had outgrown a starter home, or renters with stable jobs, jumped to buy bigger houses since the low interest rates made the monthly payments manageable.
For example, a family in Little Rock might sell a 1,500 sq. ft. starter house and upgrade to a 2,500 sq. ft. home with an extra bedroom and a home office, taking advantage of 3% interest rates. This upsizing trend was common in the late 2010s and especially during the pandemic years. In fact, move-up buyers (current homeowners buying a more expensive home) were very active in 2020–21. Arkansas’s relative affordability helped – middle-class households could still afford a spacious home here, at least before prices went too high.
By contrast, in 2022–2023, as affordability tightened, some buyers had to scale back their expectations. Higher interest rates and higher prices meant some families “downsized” their plans, even if not downsizing in the traditional sense. Buyers started settling for smaller homes or homes that needed a bit of renovation, just to make the numbers work within their budget.
Statewide data in late 2022 showed about 24% of listings were still selling above asking price (bidding wars for the most attractive affordable homes) and average time on market was only around one month, indicating that well-priced houses were still getting snapped up quickly. This competitive market forced budget buyers to compromise – for example, choosing a house with an outdated kitchen, or buying 20–30 minutes outside the city where homes cost less. Fixer-uppers and older homes became more acceptable to younger buyers who couldn’t afford new construction.
Traditional downsizing (in the sense of older homeowners moving to smaller homes) was a smaller trend but worth mentioning. Older Arkansans (55+) have high homeownership rates – around 78% own their homes. During the boom, some empty-nesters and retirees took advantage of high prices to sell big houses and buy smaller ones. For instance, a couple in their 60s might sell a four-bedroom family home on a large lot and move into a easier-to-maintain two-bedroom house or condo. Some moved to be closer to family or healthcare as well.
However, this downsizing wave was not huge, because Arkansas’s cost of living and property taxes are low – many seniors didn’t feel a pressing need to sell and move. A lot of older homeowners chose to “age in place” in homes they already owned. Those who did downsize often freed up a suburban house that was quickly bought by a younger family, highlighting a cycle where one generation’s downsizing enabled another’s upsizing.
Comparing 2018–2023 to the Previous Decade (2008–2017)
The housing patterns of 2018–2023 in Arkansas look quite different from those of the prior decade (2008–2017). The late 2000s were marked by the housing crash and Great Recession, whereas the late 2010s/early 2020s brought a boom (and then a pandemic shock).
Price Growth Differences
Home price growth drastically diverged. From 2008 to 2017, Arkansas home prices were relatively flat or modestly rising overall. The state didn’t have as severe a boom-bust as some states, but the 2008 financial crisis did slow things down. In fact, the median home value in Arkansas in 2008 was around the low-$120,000s, and by 2017 it had only crept up to about $130,000. That’s perhaps a 5–10% total increase over a decade (with some dips and recoveries in between).
In contrast, from 2018 to 2023, the median value jumped from roughly $130K into the $170Ks – a 30%+ increase – even before the extreme spike to $300K list prices by 2024. In short, 2018–2023 saw much faster appreciation. Home prices “far exceeded wage gains” in this recent period, whereas the 2008–2017 period was more in line with (or even lagging) income growth.
Market Dynamics Shift
Housing demand also shifted. The 2008–2012 years were a buyer’s market in many places – the economy was weak, lending standards were tighter, and there were foreclosures on the market. Fewer people were buying homes, and some who wanted to couldn’t get loans. Arkansas did have foreclosures and distress sales then (though not as many as harder-hit states).
From 2013 to 2017, the market slowly recovered as jobs returned and interest rates stayed low. But nothing in that earlier decade compares to the feeding frenzy of 2020–2021. During the pandemic boom, Arkansas saw homes selling in days, with multiple offers – a scenario rarely seen in 2008–2017. Inventory was at historic lows in 2020–21, whereas around 2010–2015 there were plenty of homes available and buyers had more leverage. By late 2023, the market cooled from the peak frenzy, but conditions remained tighter than a decade prior.
Migration Patterns
Migration and location preferences changed between the two periods. In the earlier 2008–2017 decade, Arkansas’s population growth was modest. Some urban areas grew, but many rural areas steadily lost people (a long-running trend). There wasn’t a notable influx of out-of-state buyers – if anything, more young Arkansans might have left for opportunities elsewhere during the recession.
By contrast, 2018–2023 featured net inbound migration for Arkansas. People moved into Arkansas from other states at higher rates around 2020–2022, drawn by the low cost of living and the ability to work remotely. In 2021, Arkansas was reportedly the #1 state for inbound movers (by percentage) in one survey, with far more people moving in than leaving. This was a big reversal from the sluggish population trends a decade earlier. The beneficiaries were mainly the urban areas – e.g. Northwest Arkansas gained transplants, something that was just beginning to happen in the mid-2010s but really accelerated by the 2020s.
National Comparison
National housing trends also provide contrast. The housing bust of 2008–2012 was a nationwide phenomenon that Arkansas weathered with only slight price declines (because prices here never inflated as much). By 2018–2023, the nation experienced another shock – a pandemic boom and then a sharp interest rate rise – and Arkansas outperformed many areas in terms of stability.
Even as high-priced coastal markets started to cool or even decline in late 2022, Arkansas’s home prices were still increasing year-over-year by double digits in late 2022. Arkansas didn’t have a post-2020 bust; it had a moderation. In fact, by being one of the most affordable states, Arkansas became a magnet for buyers priced out elsewhere, which is a different dynamic than a decade before.
Investor Activity
Finally, the mix of purchases differed. Investor activity post-2008 was often centered on picking up foreclosures and cheap homes to flip or rent. In the 2020–2023 period, investors were competing with regular buyers for affordable homes. By late 2023, investors made up roughly 18% of U.S. home sales (nearly 1 in 5), and an even higher share – about 26% – of purchases in the lowest-priced tier of homes.
That trend was evident in Arkansas’s affordable market: many rental investors and house flippers bought inexpensive properties, which sometimes made it harder for local first-time buyers to get those homes. This investor share hitting record highs in 2022–2023 is a notable change from 2008–2017, when investors were present but not buying over a quarter of the starter homes on the market.
Additionally, vacation home buying was not a big factor in 2008–2017 (if anything, vacation markets were quiet after the recession). But in 2020–2021, there was that blip of high vacation-home purchases nationally (Arkansas included) before it subsided. The flurry of lake house purchases died down, and by 2023 most average buyers were focused on primary residences again.
Conclusion
In summary, 2008–2017 was a period of recovery and stability for Arkansas real estate, while 2018–2023 was a period of rapid change, volatility, and growth. The recent years brought higher highs (and some challenges with affordability) that the prior decade never saw.
Urban-rural divides widened, buyer behavior shifted quickly with economic conditions, and Arkansas found itself increasingly on the radar of out-of-state buyers. For Arkansans, this meant a competitive market for primary homes unlike anything in recent memory, especially in the cities.
As of 2023, the market was cooling from its peak frenzy, but it remained significantly hotter and pricier than the housing scene a decade earlier, marking a clear break from past trends.
References
- Property Values By State from 2005-2017 – National Association of REALTORS®
- Arkansas Home Prices Ranked Third-Lowest in U.S. – Arkansas Economic Development Commission
- Northwest Arkansas home sales down double digits in 2023 – Talk Business & Politics
- Housing Market & Prices in Arkansas 2023 – Home Value Estimator – RealAdvisor
- Table Data – Homeownership Rate for Arkansas – FRED | St. Louis Fed
- Cleveland County, Arkansas – U.S. Census Bureau QuickFacts
- Izard County, Arkansas – U.S. Census Bureau QuickFacts
- Izard County, AR – Data USA
- Investors Bought a Record 26% of the Nation’s Most Affordable Homes in Q4 – Redfin News
- Decrease in Buying Vacation Homes Due to Mortgages, Prices – Money
- Booming Arkansas: How Migration is Fueling Population Growth and Driving Up Housing Prices – University of Arkansas Cooperative Extension
- Arkansas Housing Market Trends & Forecast 2024 – Innago
