NWA's built-to-rent housing slower than national trend
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Nearly 600 built-to-rent community units were raised in NWA from 2018 to 2023, according to RentCafe.
Why it matters: Mortgage rates hovering near record highs for the year have fueled a proliferation of those communities, which offer amenities, property-management perks — and no mortgages.
The big picture: Such developments are typically popular in the Southeast, Southwest and Sunbelt, where land costs less, but they're slowly catching on in other parts of the country.
- NWA's activity is relatively low compared to other metro markets.
Between the lines: Built-to-rent communities are particularly appealing to those who want more space but can't afford to buy a house, as well as empty nesters seeking less home upkeep, experts say.
Zoom in: NWA's single-family homes are increasingly more expensive. The average selling price during the second half of 2023 in Benton County was $420,144, and $386,695 in Washington County — both down slightly from the previous six-month period, according to the most recent Arvest Skyline Report.
- Yes, but: Those prices are up 123% in Benton County and 110% in Washington County from a decade earlier.
Meanwhile, average rent prices continue to climb — up nearly 38% since the start of 2021.
Zoom out: The number of built-to-rent community houses completed nationwide jumped 75% from 2022 to 2023, reaching an all-time high of nearly 27,500 homes, RentCafe reports.
- More than 45,400 are now under construction, per the analysis.