Fayetteville, Arkansas's housing market has tightened significantly in recent years. Plentiful jobs from large employers and flagging housing supply has driven up demand for Fayetteville real estate and, consequently, has driven up prices. It's a familiar story for many of the cities we've written about. Fayetteville is considered one of the best places to live in the U.S. and so there's lots of competition for limited housing which results in higher prices for real estate properties. As people get priced out of home purchases, they compete for rentals which drives rents up.
Short Housing Supply and Lots of Demand
With strong competition for rentals, we're not surprised to see Fayetteville on RENTcafe's list of the Most Competitive Rental Markets in 2021. It takes the #32 spot. Rentals are only vacant for an average of 15 days per year with an average of 17 prospective renters per rental.
Appreciation has been very strong for Fayetteville recently as it has for most sought-after locales in the U.S. This is caused by low supply and high demand driven by population growth in Northwest Arkansas. Among the 264 cities ranked by the Federal Housing Finance Agency, Fayetteville ranks 55th in appreciation for the last year at 20.37%. It's an impressive number, but still quite a bit behind the #1 city, Boise, which has an average appreciation of 34.75% over the last year.
One concern about rising prices in Fayetteville is affordability. Wages in the area have not come close to keeping pace with the increase in real estate prices. If housing prices are too high for most people in the area to live comfortably, people will choose to leave. In that case, the market would naturally correct pricing with less people creating decreased demand and consequently lower prices. As an investor looking to recoup in the near term, this is an issue worth keeping an eye on.
The #1 property really stands out for one reason —a huge lot. Almost 100 acres for less than a million bucks. There's a small house on the property, but there's enough land to expand, build something new, or anything else you can imagine.
If you're looking for land but have a limited budget, our #5 property should be interesting to you. You get 3 acres and a very small house in need of a total renovation. The price, at $95,000, is around a quarter of the price for the median property in the area. A contractor or developer who could rehab or build on the property would be the ideal buyer.
Perhaps the most intriguing move-in-ready real estate property is #9. The 3-acre property has an 1800 square foot house and is in a desirable 1.13 zipX zip code. The asking price is below the median, so it shouldn't be on the market for much longer. Check our FAQs page for an explanation of zipX.
- Arkansas Democrat Gazette: Northwest Arkansas following urban sprawl pattern, housing squeeze
- Federal Housing Finance Agency's House Price Index Rankings
- Northwest Arkansas Democrat Gazette: Overall population growth in Northwest Arkansas is large but not evenly distributed, census shows
- RENTcafe's 2021 most competitive rental markets
- KATV: 'Red hot' housing market in Northwest Arkansas struggles with growth; home prices rise
- U.S. News and World Report looks at Fayetteville
|Median List Price||Median Sqft||Median Lot Size(SqFt)||Median HOA Fee|
15860 E Black Oak Rd
14439 N Ua Beef Farm Wc # 845
573 Reed Valley Rd
1691 S Dead Horse Mountain Rd
17478 Miller Rd
506 W Whillock St
11887 Hazel Valley Rd
4528 E Huntsville Rd
17672 Beav-Rama Wc 545 Rd
10804 Friendly Rd
5808 S Cardwell Rd
17482 Lookout Tower Rd
4600 E Huntsville Rd
16265 Pin Oak Rd
15760 Zimmer Rd
260 W Willoughby Rd
3807 Wildcat Creek Blvd
2798 N Sheryl Ave
215 S Peerson St
606 W Whillock St
1700 N Double Springs Rd
2409 E Zion Rd
867 N Fox Hunter Rd
4846 E Woodsedge Rd
59 Riverside Ests