Little Rock is one of the finest locations in the United States for renters, according to WalletHub. The rental market and affordability are given high marks in the region. New business creation, a cheaper cost of living, and a great quality of life are just a few of the things Little Rock is doing well, contributing to the city’s thriving economy and housing market.
Little Rock is situated on the Arkansas River’s south bank in Central Arkansas. The state capital is most known for being the home of Bill and Hillary Clinton. Little Rock, on the other hand, is much more than politics.
According to Forbes, as people migrate south in pursuit of better weather and a more inexpensive location to call home, a secondary city like Little Rock could be a wonderful area to acquire real estate.
Growth in the population
The city of Little Rock has a population of over 203,000 people, with a total population of about 740,000 in the metropolitan region. Little Rock’s population has grown by 4.7 percent in the last ten years.
Stats on the Population:
Little Rock is the 126th-largest city in the United States, and its metropolitan area is the 78th-largest in the country.
Over the last ten years, the population has consistently increased, most recently by 0.42 percent.
The Arkansas Democrat-Gazette reports that due to job development and economic opportunities, the movement from rural to urban living is ongoing in Arkansas.
According to the Gazette, Pulaski County (where Little Rock is located) is Arkansas’ largest county, with almost 383,000 population.
According to studies from the Arkansas Economic Development Institute at the University of Arkansas at Little Rock, the county’s population is expected to reach roughly 328,600 people by 2035.
the labor market
Despite the epidemic, according to a recent piece in the Northwest Arkansas Democrat Gazette, Little Rock and Central Arkansas have seen remarkable year-over-year job growth. More than 4,000 new jobs have been created or are on the way thanks to major investors and job creators like Amazon and Costco since the beginning of last year.
Stats on Employment:
According to the Federal Reserve Bank of St. Louis, Little Rock’s GDP is over $38.5 billion and has increased by about 26% in the last ten years.
According to the BLS, job growth in metropolitan Little Rock was 0.98 percent last year, while unemployment fell to 2.5 percent.
Finance and insurance, educational services, and health care, according to the Little Rock Chamber of Commerce, will be three of the industrial areas that will create the most jobs between now and 2027.
The federal, state, and local governments, the University of Arkansas for Medical Sciences, Baptist Health, Little Rock Air Force Base, Arkansas Children’s Hospital, and the Central Arkansas Veterans HealthCare System are all major employers in Little Rock and Pulaski County.
The main universities in Little Rock are the University of Arkansas at Little Rock and the University of Arkansas for Medical Sciences.
The University of Arkansas Clinton School of Public Service, Philander Smith College, and Arkansas Baptist College are all located in Little Rock.
91.3 percent of residents in the metro region have completed high school, and 30.3 percent have a bachelor’s or advanced degree.
Little Rock is served by Interstate roads I-30 and I-40, which bring 40 percent of the country’s population within a 550-mile radius.
The Port of Little Rock is part of a 448-mile barge navigation route that runs from the Mississippi River northwest to Tulsa, Oklahoma’s east side.
The Bill and Hillary Clinton Little Rock National Airport is located about three miles from the downtown business center and serves almost 2.2 million passengers each year with direct flights to 16 major destinations like Atlanta, Dallas, Houston, Las Vegas, Los Angeles, and Chicago.
Market for real estate
According to a recent study by FOX 16 News, home prices in Little Rock and Central Arkansas have risen in recent months, following a nationwide pattern. “If the sign goes into the ground, there are many calls that day to go in and see the property,” says one local real estate agent.
Realtor.com, on the other hand, feels that the market will soon change in favor of buyers, as the supply of properties outnumbers the demand.
Statistics on the Market:
According to Realtor.com, the median listing price of a home in the Little Rock real estate market is $220,000. (as of October 2021).
A property in Little Rock costs $118 per square foot to list.
According to the Zillow Home Value Index, home values in Little Rock have climbed by 7.5 percent in the last year (through October 31, 2021).
The average number of days a home spends on the market in Little Rock is 34, which is up from previous month.
Wright Avenue, with a median listing price of $65,000, is the most affordable of Little Rock’s 51 neighborhoods to buy in.
River Market is Little Rock’s most affluent area, with a typical listing price of $399,000.
Renters’ market is appealing.
According to RENTCafé, the number of renters in the United States has expanded two times faster than the number of homeowners during the last ten years.
Naturally, the ideal demographic groupings for renters differ by market. Some communities, for example, have a high proportion of seniors as renters, while others have a substantial proportion of millennial renters.
Single males, single females, and unmarried couples are the three demographic groupings in Little Rock who are more likely to rent rather than own. These three categories account for roughly 64% of the households in the Little Rock metro region when added together.
Statistics on the Market:
According to Zumper, the median rent for a three-bedroom property in Little Rock is $1,100. (as of December 10, 2021).
The cost of renting in Little Rock has risen by 11% year over year.
Renter-occupied households account for 42% of all occupied housing units in Little Rock.
According to RENTCafé, 46 percent of housing units in Little Rock rent for between $701 and $1,000 per month, while 27 percent rent for less than $700.
Cammack Village, Little Rock City, and Wrightsville are the most affordable areas in Little Rock, with rentals ranging from $811 to $874 per month.
Price increases in the past and housing affordability
Real estate investors utilize two strategies to estimate future demand for rental property: historical changes in home prices and housing affordability analysis.
Freddie Mac issues a monthly report that details the most current short- and long-term historical price patterns in all U.S. markets.
Home prices in the Little Rock metropolitan region have climbed by more than 34.9 percent since 2016, according to the most recent Freddie Mac House Price Index (FMHPI). In Little Rock, housing prices have increased by 13.6 percent in the last year (as of October 2021), while they have increased by 1.2 percent in the last month.
Another statistic that investors can use to anticipate present and future demand for rental real estate in Little Rock is housing affordability. The affordability index measures the proportion of annual income required to buy a median-priced home in a certain market.
The housing affordability report for the top 100 metro areas in the United States was recently released by Kiplinger. The organization employs a one-to-ten affordability scale, with one being the most cheap place to buy a property and ten being the most expensive.
When Kiplinger looked into the affordability of home in Little Rock, they discovered the following:
Home prices in Little Rock have climbed by 11.0 percent from the last real estate cycle market peak in May 2006.
Home prices in Little Rock have climbed by 16.8% from the last real estate cycle market bottom in March 2012.
Little Rock has an affordability score of one out of ten, indicating that it is one of the more cheap areas in the United States to buy a property.
According to the City of Little Rock, Kiplinger named Little Rock #1 of “10 Great Places to Live” and #6 on Gallup’s “America’s Happiest Cities.”
Stats on Quality of Life:
With a cost of living that is 6% lower than the national average, Forbes rates Little Rock among the best destinations for business and vocations, job growth, and education.
Little Rock is ranked by U.S. News & World Report as one of the greatest places to live and retire in the United States. U.S. News also gives Little Rock top marks for value, employment market, and general quality of life.
Little Rock is ranked 180th out of 388 cities worldwide, with a cost of living index of 59.65.
In Little Rock, the Main Street Creative Corridor has brought together arts, culture, fine dining, and more in a mixed-use development.
The Arkansas Arts Center in Little Rock, which houses works by Van Gogh and Rembrandt, is the state’s largest art museum.
In North Little Rock, the Arkansas Travelers, an AA professional Minor League Baseball affiliate of the Seattle Mariners in the Texas League, play.