By: Ellie Hagen

FAYETTEVILLE, Ark. (UATV)— Nearly 40 people are moving to Northwest Arkansas each day, forcing the community to adapt to the rapid growth. 

As the region is expected to reach 1 million residents by 2050, the housing market is shifting to keep up with demand. Rising home prices alongside limited inventory has made it increasingly difficult for buyers to find affordable homes, especially those entering the market for the first time.

The current average price for a home in the region is around $375,000 compared to 2020, where the average price was $220,000. Prices over the past five years has nearly doubled, making it more difficult for some home buyers in the area.

Grace Bradford, a Northwest Arkansas realtor, often works with first-time home buyers. She said that over the past years, she has often had to reset expectations for these clients with the changing market.

“I tell my first-time homebuyers it’s realistic real estate…because what your budget gets you today isn’t what it would have gotten you a couple years ago,” Bradford said.

To combat the massive growth, plans have been put in place by city leaders and the Northwest Arkansas Council to stabilize and bring down housing costs. Currently, the area develops mostly apartments and single-family homes, catering towards young adults, and families. 

Nelson Peacock, CEO of the Northwest Arkansas Council says that other forms of housing are key in order to see the prices come down.

“What we are trying to do is promote incremental development, where you can have more duplexes, more fourplexes, more single family homes but not with a huge yard where you’re commuting,” Peacock said. “So that’s really the idea with the new development patterns.” 

This type of development is designed to create more housing options for people at different stages of life, while not having to expand and take up more land. Peacock said the council’s plan is to build off what is already in place, and to keep as much natural land in the area as possible.

The council, along with local leaders, says that these efforts including more housing, roads and utility infrastructure, could help balance the demand that growth to the area will bring. 

“We just want to make sure there are options for everyone. And the more we build, the more affordable things will be,” Peacock said.

As the community continues to grow, officals will continue reshaping their approach to combat this issue.