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A daily look at the most significant and interesting stories affecting Northwest Arkansas, written by local reporters.

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Data: Census Bureau via housingdata.app; Chart: Axios Visuals

Northwest Arkansas is on track to permit more new housing units than last year, but only by about 2%, according to Census Bureau data.

Why it matters: That's a problem for people facing steep housing prices. Experts estimate America is short more than 3 million units of housing, either to rent or buy.

The big picture: U.S. metros overall are on track to permit fewer new housing units than last year. Higher interest rates for loans are slowing new-home and apartment construction, according to the National Association of Home Builders.

Labor and lot shortages are also weighing on builders, per the group's latest survey.

Zoom in: Just under 7,000 units are projected to be built this year in Benton and Washington counties.

Last year, single-family homes made up 77% of the total permits, and projects with five units or more about 15%. Duplexes and quadplexes made up the balance.

Meanwhile, prices are near all-time highs, squeezing lower-wage earners.

Yes, but: Homebuilding has proved resilient, partly because of a low inventory of existing houses for sale, Axios' Neil Irwin reports.

1.3 million total units were permitted in 2023 — single-family homes accounted for 60% of them, the data shows.

Between the lines: Some areas — particularly fast-growing Southern metros — are seeing more homebuilding than others.

What we're watching: A cascade of new apartments, financed when interest rates were lower, helped recently to slow rent growth.

With the peak of the construction wave behind us, per an analysis from real estate services firm Cushman & Wakefield, landlords could raise rents.

Homebuilding permits set for slight rise in Northwest Arkansas this year

Northwest Arkansas is on track to permit more new housing units than last year, but only about 2%.

Northwest Arkansas

A chart showing homebuilding permits in Northwest Arkansas from 1980 to 2024 with a spike in 2008 and a low in 2010 but a mid-range in 2023.

Northwest Arkansas is on track to permit more new housing units than last year, but only by about 2%, according to Census Bureau data.Why it matters: That&#x27;s a problem for people facing <a class="gtmContentClick" data-vars-link-text="steep housing prices" data-vars-click-url="https://www.axios.com/2024/05/08/homeowners-wealth-rich-rents-increase" data-vars-content-id="23e73819-84c5-47f1-aafb-b2650f828ca7" data-vars-headline="Homebuilding permits set for slight rise in Northwest Arkansas this year" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/05/08/homeowners-wealth-rich-rents-increase" target="_self">steep housing prices</a>. Experts estimate <a class="gtmContentClick" data-vars-link-text="America is short" data-vars-click-url="https://www.axios.com/2023/12/16/housing-market-why-homes-expensive-chart-inventory" data-vars-content-id="23e73819-84c5-47f1-aafb-b2650f828ca7" data-vars-headline="Homebuilding permits set for slight rise in Northwest Arkansas this year" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/12/16/housing-market-why-homes-expensive-chart-inventory" target="_self">America is short</a> more than 3 million units of housing, either to rent or buy.

Real Estate

As buying a home has gotten less attainable for Northwest Arkansas, demand for second homes in the region and nationwide is also at its lowest in data going back to 2018, Redfin reports.

Why it matters: Vacation homes are losing their luster.

Homeownership costs have soared, and cities are cracking down on short-term rentals.

Plus, fewer people can work remotely from their beach house or ski chalet these days.

By the numbers: U.S. homebuyers took out around 86,600 mortgages for second homes last year, per Redfin's analysis of Home Mortgage Disclosure Act data.

That's down roughly 5% from a year earlier and 66% from the pandemic era's home-buying frenzy.

Zoom in: Demand has particularly cratered in Florida as climate-related housing costs swell.

Mortgages for second homes fell from the previous year in 30 of the 50 most populous metros, led by Miami (-32%), Orlando (-28%) and Fort Lauderdale (-28%).

The big picture: Home sales are sluggish overall, with many shoppers sidelined by high prices, elevated mortgage rates and economic uncertainty.

Second-home mortgages represented less than 3% of all mortgage originations in 2024 — a record low, per the real estate site.

Reality check: Even wealthy cash buyers are watching their wallets.

"They are much more likely to make a lowball offer or request concessions than they used to be," Florida agent Lindsay Garcia said in the report.

The intrigue: Travelers may be cooling on second homes, too.

Budget-conscious guests appear to be delaying or canceling stays at Airbnbs and other rentals, according to analytics firm AirDNA.

What's next: Skipped getaways, slashed wedding budgets, dropped dinner plans — call this the summer of strategic spending.

No one is buying vacation homes in NWA

Demand for second homes in the region and nationwide is at its lowest since 2018.

As <a class="gtmContentClick" data-vars-link-text="buying a home" data-vars-click-url="https://www.axios.com/local/nw-arkansas/2025/06/04/nwa-housing-crisis-reform-needed" data-vars-content-id="510f2e70-b853-45da-bc79-da956ac5ed1b" data-vars-headline="No one is buying vacation homes in NWA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/nw-arkansas/2025/06/04/nwa-housing-crisis-reform-needed" target="_self">buying a home</a> has gotten less attainable for Northwest Arkansas, demand for <a class="gtmContentClick" data-vars-link-text="second homes" data-vars-click-url="https://www.axios.com/2025/04/02/canada-trump-tariffs-home-sell" data-vars-content-id="510f2e70-b853-45da-bc79-da956ac5ed1b" data-vars-headline="No one is buying vacation homes in NWA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2025/04/02/canada-trump-tariffs-home-sell" target="_self">second homes</a> in the region and nationwide is also at its lowest in data going back to 2018, Redfin <a class="gtmContentClick" data-vars-link-text="reports" data-vars-click-url="https://www.redfin.com/news/second-home-mortgages-drop-2024/" data-vars-content-id="510f2e70-b853-45da-bc79-da956ac5ed1b" data-vars-headline="No one is buying vacation homes in NWA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.redfin.com/news/second-home-mortgages-drop-2024/" target="_blank">reports</a>.Why it matters: <a class="gtmContentClick" data-vars-link-text="Vacation homes" data-vars-click-url="https://www.axios.com/2025/04/02/canada-trump-tariffs-home-sell" data-vars-content-id="510f2e70-b853-45da-bc79-da956ac5ed1b" data-vars-headline="No one is buying vacation homes in NWA" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2025/04/02/canada-trump-tariffs-home-sell" target="_self">Vacation homes</a> are losing their luster.

News

Money

Data: Realtor.com; Chart: Jacque Schrag/Axios

The hottest homes on the market aren't the showiest — they're the ones buyers can still afford, Realtor.com finds.

Why it matters: In today's expensive market, fierce competition for cheaper homes is driving up their prices.

By the numbers: Median asking prices for English-inspired and Mediterranean homes were the highest in Northwest Arkansas, and each accounted for a smaller share of local listings than other styles. 

Nationally, median asking prices for colonial and traditional homes, some of the most affordable styles, jumped 5.6% in May from a year earlier.

That's the biggest increase of any architectural style researchers analyzed.

The other side: Sprawling Mediterranean-style homes, common in costly areas like Los Angeles and Miami, saw prices flatten.

The big picture: "In general, higher-price home styles have appreciated less than lower-priced styles in the past year, a nod to economic and policy uncertainty as well as the rising cost of ownership," Realtor.com's Hannah Jones wrote in the report.

Reality check: No matter the look, home prices have soared since the pandemic.

The median U.S. home sold in the first quarter cost roughly $417,000 — 33% more than in 2019, according to federal data.

The average selling price for a single-family home during the second half of 2024 in Benton County was $449,750. It was $402,322 in Washington County. 

Zoom in: Colonial and traditional style homes, including the ever-present farmhouse, made up around half of all single-family listings in May.

They're especially popular in Houston (9%), Atlanta (8.7%) and Dallas (4.5%).

More homes overall are for sale in the South and West compared to other parts of the country.

NWA's manor-style homes are pricier, harder to find

No matter the look, home prices have soared since the pandemic.

A bar chart of the median price of select types of homes listed in the Northwest Arkansas metro area in May 2025. Colonial and traditional homes had a median price of $435,000 and were 55% of the listings. Craftsmen (10%) were $484,950, English-inspired (0%) were $650,000, mediterranean.

The hottest <a class="gtmContentClick" data-vars-link-text="homes" data-vars-click-url="https://www.axios.com/2025/03/11/affordable-housing-crisis" data-vars-content-id="799672b1-a557-4d92-a6be-fab1cad9671a" data-vars-headline="NWA&#x27;s manor-style homes are pricier, harder to find" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2025/03/11/affordable-housing-crisis" target="_self">homes</a> on the market aren&#x27;t the showiest — they&#x27;re the ones buyers can still afford, Realtor.com <a class="gtmContentClick" data-vars-link-text="finds" data-vars-click-url="https://www.realtor.com/research/architecture-styles-review-2025" data-vars-content-id="799672b1-a557-4d92-a6be-fab1cad9671a" data-vars-headline="NWA&#x27;s manor-style homes are pricier, harder to find" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.realtor.com/research/architecture-styles-review-2025" target="_blank">finds</a>.Why it matters: In today&#x27;s expensive <a class="gtmContentClick" data-vars-link-text="market" data-vars-click-url="https://www.axios.com/2025/06/03/homes-buyers-sellers-redfin" data-vars-content-id="799672b1-a557-4d92-a6be-fab1cad9671a" data-vars-headline="NWA&#x27;s manor-style homes are pricier, harder to find" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2025/06/03/homes-buyers-sellers-redfin" target="_self">market</a>, fierce competition for cheaper homes is driving up their prices.

Northwest Arkansas had 2,958 active listings in early June, up 4.9% from a year ago, according to Redfin data.

Why it matters: Even this costly housing market can't stop a baby boomer who's tired of cleaning an empty nest or a young family running out of bedrooms.

The big picture: Many U.S. homeowners feel locked into their current mortgage.

Those with a mortgage rate below 3% say their likelihood of moving in the next three years would soar — from about 17% to 28% — if they could keep their current loan, per recent surveys from the New York Fed.

State of play: The number of homes sold in NWA is trending slightly above last year, according to Redfin data. Home sales numbered 246 from  July 8 to Aug. 4, compared to 220 during a similar time frame last year.

Flashback: In 2021, houses started getting snatched up. The rate of homes off the market in two weeks shot up from 8.5% in August and September to 72.5% in December that year, and reached about 86% in March 2022, according to Redfin.

In recent months, the rate has hovered around 60%.

What's next: More golden handcuffs could start to loosen. Optimism has grown that the Federal Reserve will start cutting interest rates in September, Axios' Felix Salmon reports.

Homes for sale stay steady in Northwest Arkansas

Many U.S. homeowners feel locked into their current mortgage.

Northwest Arkansas had 2,958 active listings in early June, up 4.9% from a year ago, according to Redfin data.Why it matters: Even this costly<a class="gtmContentClick" data-vars-link-text=" housing market" data-vars-click-url="https://www.axios.com/2024/07/27/home-buying-challenges-us" data-vars-content-id="a82ac4fc-e145-42db-8c4a-d1493955a26f" data-vars-headline="Homes for sale stay steady in Northwest Arkansas" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/07/27/home-buying-challenges-us" target="_self"> housing market</a> can&#x27;t stop a<a class="gtmContentClick" data-vars-link-text=" baby boomer" data-vars-click-url="https://www.axios.com/2024/03/30/boomers-vs-millennials-with-kids-homes" data-vars-content-id="a82ac4fc-e145-42db-8c4a-d1493955a26f" data-vars-headline="Homes for sale stay steady in Northwest Arkansas" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/03/30/boomers-vs-millennials-with-kids-homes" target="_self"> baby boomer</a> who&#x27;s tired of cleaning an empty nest or a<a class="gtmContentClick" data-vars-link-text=" young family" data-vars-click-url="https://www.axios.com/2024/06/01/starter-turns-forever-home" data-vars-content-id="a82ac4fc-e145-42db-8c4a-d1493955a26f" data-vars-headline="Homes for sale stay steady in Northwest Arkansas" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/06/01/starter-turns-forever-home" target="_self"> young family</a> running out of bedrooms.

Data: LendingTree analysis of U.S. Census Bureau data; Note: Monthly costs include utilities, fees, and/or taxes; Median housing costs above $4,000 are recorded as "$4,000+" by the Census Bureau; Chart: Jacque Schrag/Axios

Renting is cheaper than owning a home in Northwest Arkansas, according to a recent LendingTree analysis.

Why it matters: Housing costs have soared nationwide, with stubbornly high home prices and mortgage rates weighing on would-be buyers.

U.S. homeowners with a mortgage now pay around 37% more per month than renters, researchers found.

By the numbers: Nationally, the median monthly gross rent was nearly $1,500 in 2024, based on the latest available census data, compared to over $2,000 a month for mortgaged homes.

That gap widened from the year before as homeownership costs rose faster than rents.

Zoom in: The median gross rent in NWA was about $1,220, compared to more than $1,700 monthly for mortgages.

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.

Meanwhile, the average selling price for a single-family home in Benton County during the first half of 2025 was $471,427, up 8.8% from a year earlier. It was $417,489 in Washington County, up 7.2% from a year earlier, per the Arvest Skyline report.

Threat level: In 22 of the 100 largest U.S. metros, owning costs at least 50% more each month than renting, including utilities, fees and taxes.

Northeastern metros — New York (76%), Bridgeport, Connecticut (75%), and Providence, Rhode Island (67%) — saw the biggest percentage differences between homeowners' and renters' bills.

San Francisco posted the largest dollar difference, nearly $1,600.

Even in relatively affordable areas such as Phoenix and Orlando, Florida, renting remains around $200 cheaper per month.

What they're saying: "The cost disparity here could be enough to convince someone that they'll never be able to own a home in some areas, and — unfortunately — they may be right," said Matt Schulz, LendingTree's chief consumer finance analyst, in a statement.

Homebuyers may have to move to another city to find a place within reach, he says.

What we're watching: President Trump has proposed a raft of policies meant to lower mortgage rates and boost home-buying demand.

But making housing more affordable is easier said than done.

Northwest Arkansas homeownership more expensive than renting

The median gross rent in NWA was about $1,220, compared to more than $1,700 monthly for mortgages.

A chart showing the monthly median cost to rent or own by metro area in 2024 among the 100 largest metros. In all metro areas, it was cheaper to rent than it was to own a home. The national average rent price was $1,487 compared to $2,035 to own. In the Northwest Arkansas metro, the median rental co

Renting is cheaper than <a class="gtmContentClick" data-vars-link-text="owning a home" data-vars-click-url="https://www.axios.com/2026/01/19/affordable-homes-metro-income" data-vars-content-id="c3817f46-7256-4f40-a909-a9d149df56c6" data-vars-headline="Northwest Arkansas homeownership more expensive than renting" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2026/01/19/affordable-homes-metro-income" target="_self">owning a home</a> in Northwest Arkansas, according to a recent LendingTree <a class="gtmContentClick" data-vars-link-text="analysis" data-vars-click-url="https://www.lendingtree.com/home/mortgage/comparing-rent-vs-owning-a-home-in-nations-largest-metros/" data-vars-content-id="c3817f46-7256-4f40-a909-a9d149df56c6" data-vars-headline="Northwest Arkansas homeownership more expensive than renting" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.lendingtree.com/home/mortgage/comparing-rent-vs-owning-a-home-in-nations-largest-metros/" target="_blank">analysis</a>.Why it matters: Housing costs have soared nationwide, with stubbornly high home prices and mortgage rates weighing on <a class="gtmContentClick" data-vars-link-text="would-be buyers" data-vars-click-url="https://www.axios.com/2026/01/01/mortgage-rates-home-prices-predictions-2026" data-vars-content-id="c3817f46-7256-4f40-a909-a9d149df56c6" data-vars-headline="Northwest Arkansas homeownership more expensive than renting" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2026/01/01/mortgage-rates-home-prices-predictions-2026" target="_self">would-be buyers</a>.

Sami Sparber

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