Northwest Arkansas tops best-performing list
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Downtown Bentonville. Photo: Worth Sparkman/Axios
Northwest Arkansas is the No. 1 metro in the country, according to Milken Institute's annual report weighing several economic factors.
Why it matters: The area's 2026 Best-Performing Cities ranking — up from No. 7 last year — was driven by an active labor market, NWA's high-tech sector and affordable housing, the Milken report says.
State of play: Milken researchers evaluate 411 metros on 13 metrics through 2024, including labor trends, high-tech performance and economic opportunity.
- The report credits the region's performance to major employers — Walmart, the University of Arkansas, Tyson Foods and J.B. Hunt — plus growth in professional and business services, a high-paying sector that shrank nationally but expanded in Northwest Arkansas.
Zoom in: Even though home prices have doubled over the past decade, Northwest Arkansas still ranked 15th nationally for housing affordability. But price is only one factor.
- The metric is calculated by the share of households spending less than 30% of their income on housing, Maggie Switek, lead author of the report, told Axios.
- Wages in Northwest Arkansas grew more than 9% last year, outpacing the national average of just under 6% and inflation at about 3%, helping offset rising housing costs, she said.
Researchers also found Northwest Arkansas' construction employment jumped nearly 50% in the five years from 2019 to 2024, helping the region add housing faster than many other fast-growing metros.
- Reality check: Attainable housing is one of NWA's top quality-of-life issues. Area population growth is so rapid that the infrastructure and zoning to support new housing development haven't fully evolved to keep pace.
The caveat: Milken flagged rising income inequality and limited tech diversity as longer-term risks, even as it noted the region's economy is more balanced across sectors than many peers.
What they're saying: "The economy in your area seems to be well balanced across sectors," Switek said.
- "It's not that your growth has relied solely on one particular type of activity, and that makes me optimistic about your future."
The big picture: NWA's economic success contrasts with broader statewide challenges on health and quality-of-life metrics. Arkansas ranks among the worst areas nationally for hunger and maternal and infant mortality, and came in at No. 49 in overall health, per the United Health Foundation.
- Yes, but: Snapshots don't always tell the full story. Statewide averages can mask regional differences, and health outcomes often lag visible economic gains by years.
The bottom line: Consistent, balanced growth without volatility is what put Northwest Arkansas at the top of Milken's rankings and what could keep it there.