Why Invest in Arkansas Real Estate?
Arkansas is a beautifully diverse state with plenty of opportunities for real estate investors. Be it a home that presents the beauty of nature right outside the window or a cozy bungalow snuggled in the heart of a vibrant city, investors can find any type of property they are looking for in Arkansas real estate.
One reason the real estate market is good in Arkansas is because of the state’s robust economy. The Natural State is home to six Fortune 500 companies, including the world’s leading retailer, Walmart. Agriculture also plays a crucial role in Arkansas’s economy, ranking 13th in the U.S. in terms of values of products sold. Tourism is equally important, since the state is home to scenic beauty, rich wildlife, and clear lakes and streams.
CNBC recently ranked Arkansas the 20th best state for business in the country. Low real estate and construction costs make business start-up and relocation opportunities in the state attractive. Moreover, the state has the 5th lowest cost of living, 28th best-educated workforce, and 31st-best infrastructure. And this is before you factor in that as of 2014, Arkansas is the most affordable state to live in.
Investment Considerations for Arkansas Real Estate
- Appreciating Home Prices– The statistics for Arkansas continue to exhibit an upward trend in home prices. Expanded Data indexes from the Federal Housing Finance Agency show that the state’s house prices rose 1.2% over the first quarter of 2017. And over the latest four quarters, house prices were up 4.2%.
- Low Cost of Living – It can be frightening to look at the cost of single-family homes and food prices in the ‘big city’ states like New York and California. That’s not the case in Arkansas. The cost of living in North Little Rock, for example, is 58% lower than in New York City, 36% lower than in Washington, DC and 21% lower than in Chicago.
- Job Opportunities–Once known as the Land of Opportunity, Arkansas has much to offer in terms of jobs. As greater Little Rock, northeast and northwest Arkansas continue to develop, professionals are needed to fill positions in a wide range of fields, including technology and agriculture. These professionals will need homes, which is a boon to real estate investors.
- Natural Disasters– While it is among the top 20% of all American cities when it comes to affordability, Phoenix is still experiencing a rise in real estate prices. This is why we are looking at the beginning of a new shift – first-time homebuyers looking for properties in suburban areas. This might be the best time to invest in a single-family home in the Arizona suburbs.
- Taxes– The cost of living may be low in Arkansas, but the state ranks 40th in the U.S. when it comes to the worst state for taxpayers. The average of local and state taxes paid is about $6,000. This could dissuade homebuyers, especially retirees, from investing in the state’s real estate market
What are the Best Markets to Invest in Arkansas?
The Little Rock metro area remains a top destination for real estate investors, thanks to its diverse neighborhoods and loads of exceptional amenities that other real estate markets don’t offer. Other high appreciating neighborhoods that investors should consider include Bentonville, Fayetteville, Texarkana, and Hot Springs.
Getting Started in Real Estate Investing? HomeUnion® Can Help
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Arkansas; and across the United States and calculate home values RENTestimate for every property in Arkansas. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.