Learn more about the housing market in Arkansas

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.

Key Takeaways

1. Arkansas's housing market is stabilizing going into 2026, with moderate price growth, rising inventory, and more balanced buyer–seller conditions.
2. Inbound migration remains strong, especially in Northwest Arkansas and Little Rock, driven by affordability, lifestyle quality, and employment opportunities.
3. Housing supply continues to expand through new construction and increased listings, helping temper price acceleration and improve affordability over time.
4. Renter affordability remains a challenge, as rents have cooled but still outpace local wage growth in several high-demand markets.

Arkansas Real Estate Market Overview 

America’s “Natural State” is known for its gorgeous landscapes and outdoor wonders, complete with incredible hot springs and extensive forests.  

With remote and hybrid work remaining common, many Americans continue to consider lower-cost states like Arkansas when relocating from expensive metros. Arkansas consistently ranked as a top destination for inbound moves in 2025, reported as the number one state for inbound migration, and a large share of newcomers settling in Northwest Arkansas, particularly around Bentonville, driven by jobs, affordability, and lifestyle appeal.

Arkansas’ housing market in 2025 has shown moderate price gains and expanded supply, with home values and listings rising while remaining well below national medians. According to Zillow’s home value metrics, typical Arkansas home values increased 1.3% year-over-year, reflective of steady demand and continued affordability relative to many states.

For professionals and cost-conscious buyers, cities like Little Rock and Bentonville offer accessible market conditions compared to coastal metros. While mortgage rates and price pressures still affect affordability, Arkansas’s lower cost of living and growing economic opportunities make it an enticing relocation option. Studies suggest housing demand will remain steady into 2026, with prices expected to hold firm or rise slightly while supply gradually broadens.

In this article, we’ll continue to explore Arkansas housing market and real estate trends, including the metrics, insights, and forecasts you need to know if you’re considering moving to or investing in the state in 2026.

Arkansas Housing Market Trends 

To understand the housing market in Arkansas, it’s important to keep up with trends. Let’s look at some key ones in Arkansas: 

Note: These statistics are based on Redfin’s monthly housing data from November 2025. 

Median Home Price 

The median home price in Arkansas in November 2025 was $268,800. This number is 3.5% higher than last year, according to Redfin’s monthly housing data. 

Certain areas of Arkansas have slightly higher rates. For example, Little Rock has a median sale price of $281,000. Recently, homes in that area have tended to sell for approximately the listing price.  

Number of Homes Sold in November 2025 

There were 2,614 homes sold in Arkansas in November of 2025, which is down 6.1% from last year. However, it’s important to keep in mind that this number might be lower compared to other months. Sales nationally tend to peak during the spring and summer months and slow considerably in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in Arkansas is 61 days. This number is consistent with Arkansas’s DOM from last year, which was 52 days. Nationally, houses tend to stay on the market for around a month and a half, though this number varies widely based on the local market, so it can be difficult to say what time frame could be considered long or short. It’s a better practice to compare how long a listing has been on the market compared to homes in its area. For an Arkansas home, anything substantially longer than 40 days could be a red flag for buyers.  

New Supply Statistics 

Residential construction activity remains notable in Arkansas. In the first half of 2025, regions like Northwest Arkansas issued 2,929 new building permits, one of the highest totals in recent years, supporting future housing availability. Although multifamily permit values have fluctuated, overall permit activity and rising active listings indicate that housing supply is broadening as buyers seek affordability.

Arkansas’s housing supply has also expanded through 2025, with the number of homes listed for sale rising significantly compared with previous years. In November 2025, there were about 17,432 homes for sale in the state, up roughly 12.9% year-over-year, showing increased inventory and more options for buyers.

Property Tax Rate 

Arkansas’s average property tax rate is 0.64%, putting it at the 16th lowest rate in the United States, with the national average at around 1.11%. However, it’s important to keep in mind that tax rates vary widely based on what county you reside in and the value of your property.  

Foreclosure Rate in Q1 of 2025

According to data from ATTOM, in the first quarter of 2025 one in every 6,200 homes in Arkansas had a foreclosure filing. The state recorded 223 total filings during the quarter and ranked 25th nationwide for foreclosure rate. This reflects a 19.20% year-over-year decline, but an 8.25% increase from the previous quarter, suggesting that while conditions have generally improved since last year, foreclosure activity has ticked up slightly more recently.

Hottest Local Markets in Arkansas 

There are many advantageous markets in Arkansas for homeowners and investors. Let’s look at a few: 

1. Conway

Conway, AR is known as the City of Colleges as the home of both Hendrix College and the University of Central Arkansas. Home prices in Conway have generally trended upward year-over-year, with Redfin reporting a median sale price around $255,500 in November 2025, up roughly 4.3% from the previous year, and homes typically going under contract in about 44 days.

Overall, the market dynamics in Conway suggest a moderate seller’s market, with prices rising and turnover being brisk, but not at the frenetic pace seen in earlier years. Buyers still benefit from more choice and a generally stable sales pace compared with larger metro areas.

2. Cave Springs

One of Arkansas’s most competitive markets is Cave Springs, AR. Located in Fayetteville, a city in the northwest Arkansas housing market, Cave Springs was rated the #1 best place to buy a home in Arkansas by Niche.com, as well as the best place to raise a family. Nestled in the Ozark Mountains, Cave Springs has gorgeous views of winding waterways and is home to two famous caves.  

As of late 2025, home prices in Cave Springs have continued to rise, with the median sale price hitting an impressive $1.0M, reflecting steady demand and above-average appreciation compared with both statewide and national trends. Redfin data show homes in the area often move quickly, with median days on market significantly below the state average, and many listings drawing multiple offers and selling at or above list price.

3. Lowell

Lowell, AR is another area where the housing market is competitive, but has seen a decline in 2025. Lowell is attractive to those who are looking for a quieter life with beautiful mountain views and low crime rates. Lowell is described as having old-town charm while retaining suburban convenience. 

Lowell home prices are up 5.6% from November 2024 to November 2025, selling for an average of $391,000. However, the average days on the market has spiked from 33 days in 2024 to 225 days in 2025.

Economic Factors Impacting the Arkansas Housing Market 

A holistic view of Arkansas’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

Mortgage rates across America have been higher than normal the past few years, but Arkansas seems to be relatively moderate compared to other states. Arkansas, as of June 10, 2024, has a current 30-year fixed mortgage rate of 6.23%, and a 15-year fixed rate of 5.61%. To compare, today’s current national rate average is 6.29% for a 30-year and 5.44% for a 15-year mortgage.  

It’s important to remember that mortgage rates fluctuate widely, and the rates mentioned in this article could be quite different from what they become with time. Start monitoring mortgage rates as soon as you decide to buy a home and see how the housing market reacts to its changes.  

Inflation and Cost of Living 

Mortgage rates and inflation are closely linked, and the overall affordability of a home is heavily influenced by these metrics. Inflation increases the cost of living and thus the cost of your home, so when inflation rises nationally, fewer people can find a property that fits within their budget. Even in a relatively affordable state like Arkansas, home prices are increasing.  

Population Changes and Demographics 

Population demographic shifts due to migration and employment can impact the health of the housing market in any area. In Arkansas, unemployment is relatively average at 3.0% in September of 2025. Additionally, the median household income in Arkansas is around $82,554. Most Arkansas residents can find a job within the state right now, which bodes well for the future of the housing market.  

Arkansas Housing Market Forecast 

While it’s difficult to definitively say what the future of Arkansas’s housing market will be, due to the typical seasonal increase of interest during the spring and summer months, buyers can expect increasingly competitive markets until interest rates cool off. Sellers will most likely continue to have the upper hand and the market can expect an even lower DOM rate as people migrate from costly areas like Los Angeles in favor of Arkansas’s lower cost of living. 

Likelihood of Arkansas Housing Market Crash  

Housing market crashes are a scary yet inevitable part of the economy. Typically, market crashes are characterized by a sudden drop in home buying demand—this can happen for a variety of reasons, but most commonly from a recession in which many would-be homebuyers lose their jobs. A drop in demand can also occur from extremely high mortgage rates.  

In Arkansas, demand is not an issue this area currently suffers from. The exodus from cities with a heightening cost of living and lessening inventory keeps Arkansas cities stocked with new residents. Redfin reports that a large portion of homes in Arkansas still sell at or above list price, reflecting competitive pockets of activity even as inventory has increased and markets have cooled from pandemic-era peaks. With mortgage rates moderating and prices rising at a slower pace, the state’s housing market appears stable and sustainably competitive rather than overheated.

Forecast for The U.S. Housing Market 

Now that we’ve looked at Arkansas’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.  

Arkansas Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Renter affordability remains a concern in Arkansas going into 2026, even as rent growth has cooled from earlier peaks. Consistent with national findings from the Joint Center for Housing Studies of Harvard University, many renters continue to spend more than 30% of their income on housing costs, including in Arkansas metros such as Little Rock and Northwest Arkansas. Recent rental market data also show that, while price increases have slowed, rent levels in several Arkansas markets remain elevated relative to local wage growth, keeping cost burdens high for many households

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

Below are just a few of the current trends for Arkansas's rental market based on data pulled in December 2025 from Zillow:

Arkansas Rental Market Key Trends 

• Median rent: $1,400 

• Month-over-month rent change: -$5

• Year-over-year rent change: +$50

• Available rentals: 5,132

Conclusion 

While Arkansas may not be the first state associated with high-growth housing markets, many buyers have increasingly recognized its affordability and quality-of-life advantages. Areas with expanding communities — particularly in Northwest Arkansas — continue to attract new residents seeking lower living costs, outdoor amenities, and stable home values, offering many households the opportunity to achieve comfort and space at a more attainable price point heading into 2026.

FAQs

What is the overall outlook for Arkansas’s housing market in 2026?

The market is expected to remain stable with modest appreciation, as easing mortgage rates and rising inventory support steady — rather than rapid — price growth. Conditions are more balanced than in peak pandemic-era years.

Is Arkansas currently a buyer’s or seller’s market?

Many areas are shifting toward balanced or lightly seller-leaning conditions. Inventory has increased and days on market have lengthened, giving buyers more options and negotiation room, while demand remains steady in stronger metros.

Why are so many people moving to Arkansas?

Inbound migration is driven by lower housing costs, growing job markets, and strong quality-of-life amenities, especially in Northwest Arkansas and Central Arkansas. Compared to many states, buyers get more space for a lower price.

Are home prices still rising in Arkansas?

Yes — but at a slower, more sustainable pace than earlier in the decade. Price growth is generally modest year over year, with appreciation strongest in competitive sub-markets and moderating elsewhere.

How affordable is renting in Arkansas going into 2026?

Rent growth has cooled, but rents remain high relative to local wage gains in several metros. Many renters still experience cost-burden pressures, particularly in rapidly growing regions with limited affordable stock.