Key takeaways from the 2026 State of the Northwest Arkansas Region report
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Northwest Arkansas added about 8,300 jobs last year, but its residents are still struggling to buy a home, with the median price up 65% since 2020.
Why it matters: After years of soaring home prices, Northwest Arkansas is showing signs of relief for buyers. But homes remain expensive and rents continue climbing.
Driving the news: The Northwest Arkansas Council and the University of Arkansas released their annual State of the Region report Friday, showing continued growth alongside persistent affordability challenges.
By the numbers: Northwest Arkansas, including Benton, Washington and Madison counties, added a net of about 8,300 new jobs in 2025 and saw average annual wages increase by 2.8% to $61,240.
- Meanwhile, the unemployment rate increased from 2.8% to 3.3%, still below the national rate.
- The population grew 2.4%, from about 607,400 in 2024 to 622,200 in 2025.
State of play: Professional and business services saw the most employment growth from 2024 to 2025, followed by construction, leisure and hospitality, and education and health services, according to Mervin Jebaraj, director at the Walton College's Center for Business and Economic Research, who shared the data and discussed the report at an event Friday.
- High-tech jobs are on the rise, with a roughly 11% increase in employees, from 14,150 in 2024 to 15,690 in 2025.
Yes, but: Northwest Arkansas residents spent 43% of their income on housing and transportation, although Jebaraj noted home prices are at least trending "sideways" instead of continuing to spike, as they did for a few years post-pandemic.
- The report says the median home price for existing single-family homes grew 3.2% from $363,600 in 2024 to $375,100 in 2025.
- At the same time, median family income increased by 7.8%, to $101,800.
- The median home price is 3.7 times the median household income for a family of four, down from four times but still well above the ideal of home prices at double income.
- Average rent continued to climb, reaching nearly $1,200 a month in the first half of 2026 after crossing $1,000 in 2023, according to data Jebaraj shared.
What they're saying: Jebaraj attributed increased housing supply to prices cooling down.
Context: Average rent was under $800 a month before 2021.
The intrigue: NWA is a rare market where businesses are still building office space and then using it, Jebaraj said. The region is catching up on an office space deficit and has also added new businesses.
- The number of business establishments increased by 7% from about 15,780 in 2024 to about 16,880 in 2025, according to the report.
What we're watching: Regional organizations, cities and state legislators are considering policy changes they say could make housing more attainable.