NWA is experiencing unprecedented growth, which is great for the region. This strong population growth has led to rapid home price appreciation in the area. While rising home values are generally good for homeowners, they can become a challenge for those who are not yet homeowners.
“Household income growth is not keeping pace with rising rent and homeownership costs, and so we’re trying to find ways that as the region continues to grow, we can ensure that all residents have access to stable and affordable homes,” said Jeremy Pate, senior program officer for the Walton Family Foundation. -Talk Business & Politics
"The average area home costs $345,765; however, less than 20% of households here can qualify for a mortgage for a home at that price," based on a recent study from the National Association of Home Builders.
To meet demand and also provide affordable options by 2040, NWA "would need to add nearly 2,900 homes annually." Over the same period of time, the region needs to add at least 18,000 rental units to meet the demand of lower income families.
How might this impact younger generations? According to a recent study, Generation Z is now the fastest-growing renter segment in the United States, contributing to a 31% increase in apartment lease applications in Arkansas last year.
According to the report, Little Rock and North Little Rock had the second and third highest increase in Gen Z rental applications nationwide last year - the applications increased by 70% and 63%, respectively. -Talk Business & Politics
Although Millennials still make up the largest share of renters at 48%, Gen Z follows closely behind at 22%. From 2019 to 2020, Gen Z rental applications rose by 36%. But Gen Z and Millennials couldn't be more different when it comes to location. The locations preferred by Gen Z are small cities in the heartland, the Midwest and the South.
The full report and more can be found HERE.