Investment Insights on Northwest Arkansas’ Real Estate Market

Did you know Northwest Arkansas has the 22nd fastest population growth rate in America?¹

Bentonville is home to Walmart’s headquarters, and thanks to the corporation’s continued influence on housing demand, this area of NWA is an especially attractive market for real estate investors. Aside from Walmart, other tech startups and large corporations operate in the area, further driving population growth and demand.

For executives, particularly those looking to divest some appreciated stock or concentrated equity positions, investing in NWA real estate may be an appealing option. Not only does it enable you to invest in a tangible piece of property, but it also creates an opportunity to benefit from the region’s continued growth.

Let’s take a look at what’s going on in NWA’s real estate market for 2025 and beyond.

2025 Housing Market Trends

Like most other markets in the country, NWA experienced a Covid-era boom in housing demand, which led to a lack of inventory and diminishing days on market. In 2024, Benton County’s average active listings were down 7.8% from 2019. In the first half of 2025, however, it looks like the market is finally course-correcting, with a 16.1% year-over-year increase in average listings per month.²

This change of pace indicates that more sellers are ready to enter and participate in the market. With more inventory, plus longer average days on market (upwards of 70 days on average), buyers are starting to regain the upper hand.² As an investor, this may give you more negotiating power in purchasing a property with favorable terms.

Drew Taylor of Taylor Team Homes has observed this shift firsthand: “We have seen an ability to negotiate more with the right, motivated sellers. The price you paid for a property is forever. The interest rate is not. Many investors now are able to negotiate on the price more and plan for a refinance later to improve their cash flow and returns.”

Similarly, home values aren’t spiking like they did between 2020–2022, but they continue to rise at a healthy, sustainable pace. The price-per-square-foot is up 7.7% year-over-year—indicating a gradual appreciation in property value, as opposed to the rapid (yet unsustainable) growth we saw just a few years ago.²

Predictions for the remainder of 2025 suggest that modest year-over-year growth will continue. This assumption is supported by the area’s relatively strong job market, growing population trends, and ongoing demand for rentals.

Potential Barriers to Entry

Those interested in purchasing property as an investment should consider the potential challenges—especially when getting started.

Lending requirements tend to be stricter for investment properties than primary residences. Expect to put down 20% or more and maintain a high credit score. Mortgage rates are typically higher for investment properties as well, since they’re considered riskier loans.

According to Taylor, investors face several key obstacles: “Challenges include structuring the financing, finding tenants, managing the property, and coordinating improvements/repairs.”

Once you have one property up and running, however, acquiring the funding for future properties may be easier. You may be able to pull equity from the first property to use as a down payment on the next, for example.

You could also be up against larger corporations and developers, which tend to scoop up apartment complexes or plots of land. Even small-scale “flippers” can make the housing market more competitive for investors and homeowners alike.

Getting Started: Define Your Investment Strategy

Before diving into the market, it’s crucial to establish clear investment criteria. Taylor recommends that “investors often clarify a ‘buy box’ when they start investing. ‘Buy box’ means a set of criteria to make searching for investment easier. My buy box is multi-family property that are duplexes, triplexes, or fourplexes in Class C and Class B neighborhoods. Other investors may want single family homes within walking distance of an elementary school. Either way, that clarity on a ‘buy box’ makes it easier for the investor to know if something is a potential fit.”

The Case for Professional Property Management

One often-overlooked aspect of real estate investing is property management. Taylor emphasizes the importance of staying current with market trends: “Many investors choose to hire a property management company to ensure that their rents rise alongside the market rents. Market rents have risen quickly, yet many of the self-managing property owners have not been aware of these changes and have lost out on returns. At Cedar Oaks Management, we are able to help take care of the hassle of the management side and help the rents stay with the market, reducing the unknowns of buying real estate.”

Interested in Real Estate Investing?

If you’ve already built substantial wealth and are looking to diversify your portfolio, real estate investing may be worth considering. Before researching properties, consider what sort of property owner you’re interested in being. Unlike other intangible assets, a property requires maintenance and recurring costs to keep its value growing.

To talk more about the ins and outs of investing in Northwest Arkansas’ real estate market, feel free to reach out to our team today.

Disclaimer: This content is for educational purposes only and should not be considered personalized investment advice. Individual circumstances vary, and executives should consult with qualified financial and tax professionals before making investment decisions.

Sources:

1. https://talkbusiness.net/2025/03/census-northwest-arkansas-benton-county-remain-fastest-growing-in-state/
2. https://www.nwalook.com/mid-year-review-of-northwest-arkansas-real-estate/