Economic factors drive up homelessness
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Expensive housing and a lack of housing supply contribute to homelessness rates, which have increased in Northwest Arkansas in recent years.
The big picture: The issue isn't only who is unhoused but who can become unhoused. Those numbers have "increased exponentially" in the last five to 10 years because of factors like a lack of wage growth and less stability in employment, in addition to housing costs, Northwest Arkansas Continuum of Care executive director Quinn Emett tells Axios.
- Context: The Continuum of Care is an entity created by the federal Department of Housing and Urban Development that focuses on issues like homelessness prevention and emergency shelter. NWA's branch serves Benton, Washington, Madison and Carroll counties.
State of play: The latest point-in-time count dated January 2025 estimated that 507 people in the region were spending the night in a place not meant for human habitation, an emergency shelter or in transitional housing — up from 412 in 2024 and 436 in 2023. The data does not include those who are staying with friends or family.
- Just over half were unsheltered, and about 26% were experiencing homelessness for the first time.
By the numbers: The Continuum of Care distributes federal dollars, mostly for permanent housing, through the city of Fayetteville, Peace at Home Family Shelter and New Beginnings Northwest Arkansas. The Continuum of Care receives about $700,000 per year, but the region needs at least $2 million, says Emett. The gap is largely because of application processes that make obtaining enough money during a given grant cycle difficult, Emett says.
- Additionally, waitlists for voucher programs that provide housing for certain populations are two to four years in NWA. Some places that accept vouchers aren't even accepting applications because wait times are so long.
Between the lines: The vacancy rate ticked up to 3.7% for multifamily housing in NWA in the first half of 2025 from 2.2% in the first half of 2023, according to the latest Skyline report from Arvest Bank. However, it was lower in some cities, like 3.2% in Fayetteville and 1.7% in Springdale.
- A healthy vacancy rate is about 8%-10%, and anything below 3% is basically no vacancy, Duke McLarty, executive director of the Northwest Arkansas Council's housing arm Groundwork, tells Axios. Limited supply drives up price, hurting renters the most.
- Low vacancy allows landlords to cherry-pick who they rent to, making it difficult for people with criminal records or past evictions to find a place to live, Emett says.
Advocates explore solutions
How to best address homelessness and the housing needs of vulnerable populations remains a topic of debate.
What they're saying: "It's easy to say that the government should just provide housing for everybody. It's easy to say people are lazy," Emett says. "Regardless of whether you're on the left or the right, it's easy to come up with one thing, but it isn't one thing."
- Emett is dubious that public-private partnerships are a good solution, saying the private sector helped create this problem and government entities should invest in public housing. Cities could use city-owned property for housing. He added that perhaps philanthropy in an area like NWA could help, though.
Zoom in: The city of Fayetteville has a housing crisis task force and created a chief housing officer position in 2025. The city is finalizing details on a program to assist low-income people with down payments and to convert existing duplexes owned by New Beginnings to "address the need for single-occupancy spaces for formerly homeless residents as opposed to expecting individuals to share units," chief housing officer Marlee Stark told Axios in an email.
- Fayetteville is planning to release a housing needs assessment this spring, she said.
What's next for federally funded housing
The Trump administration has moved away from the "Housing First" philosophy that prioritizes housing people before other services like addiction treatment or employment. Now, programs receiving federal money must follow guidelines like requiring participants to receive mental health services or substance abuse treatment, for example.
Why it matters: Some homelessness advocates have criticized the change. However, Emett says programs most successful at creating stability and keeping people housed prioritize housing, employment and transportation in tandem, not necessarily housing first or services first.
What it means: Some permanent housing programs will likely pivot to transitional or shorter-term solutions, Emett says. Stark said Fayetteville can no longer use money it gave for direct rental payments because of a move toward transitional housing in the Hearth program.
Case in point: Fayetteville has used federal money for direct rental payments through its Hearth program that serves 51 residents and is now looking at potentially reduced federal funding for permanent supportive housing, Stark said.
- The city is exploring its options and has budgeted $320,000 from the Continuum of Care for the Hearth program in 2026.
- "I remain supportive of full continued funding for existing permanent supportive housing programs like our Hearth program. [Continuum of Care] funding makes it possible to keep some of our most vulnerable neighbors housed, including those with chronic disabling conditions," Stark said.
What we're watching: The U.S. Supreme Court in 2024 ruled that municipalities can enforce ordinances that criminalize behaviors associated with being unhoused — like sleeping or camping on public property — even when no shelter is available.
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