Real Estate

Supply chain issues that slow the delivery of appliances for new homes and electrical transformers used in planned neighborhoods are contributing to NWA's housing shortage.

What's happening: The scarcity is driving prices up and vacancy rates down. Home prices continued to skyrocket in the first half of 2022 — up nearly 27% to an average of $385,821, compared with the same period in 2021.

The median price of single-family homes in Northwest Arkansas grew faster year over year than any other place in the country, according to the National Association of Realtors.

Why it matters: As price tags climb, it becomes harder for lower-wage earners to afford housing and build personal wealth through equity in a home.

With pending home sales and median home sale prices skyrocketing, there are no signs of a cooler market in Northwest Arkansas.

Why it matters: We keep hearing about a market crash, but so far, local data doesn't support that claim.

The Northwest Arkansas metro issued 29.8 single-family building permits per 10,000 people in the first quarter of 2022, the latest analysis by real estate company Redfin shows.

Why it matters: As the number of homes for sale remains near all-time lows and monthly mortgage payments are near their record high, building more housing is one way to ease the affordability crisis.

Northwest Arkansans have to earn 48.3% more than a year ago to afford the region's median-value home, per the latest analysis by real estate company Redfin.

The big picture: The income needed to afford a home has soared as limited inventory and strong demand have driven up sale prices, and surging mortgage rates have made home loans more expensive.

Owners of Fayetteville's 112 Drive-In succeeded in getting 22 acres of the 36-acre property rezoned to mixed residential and commercial use, the Northwest Arkansas Democrat-Gazette reports.

• The Fayetteville City Council approved the request with an 8-0 vote.

Northwest Arkansas commercial real estate hit a new low — the lowest vacancy rate (8.3%) since at least 2005.

• The number comes from the commercial Skyline Report out Tuesday. The residential report came out in March.

Why it matters: Commercial real estate occupancy is an important indicator of how an area's economy is performing. Vacancy rates in the single digits are good for developers but can make it harder for tenants to find desirable, affordable spaces.

The average home sales price in Northwest Arkansas in February was $363,110 in Benton County and $348,353 in Washington County, so Axios wanted to see what you can get below that price point in the area's real estate market.

Here's a comparison of three homes that recently sold for around $300K in different neighborhoods in NW Arkansas.