Are you looking for a safer, more affordable place to call home? Many families today are running away from hurricanes and running toward the hills—and Arkansas is becoming a top destination for people leaving Louisiana.
But is Arkansas actually cheaper to live in than Louisiana in 2025, even after Louisiana rolled out its new flat 3% income tax?
Let’s break down cost of living, housing prices, insurance, jobs, taxes, and lifestyle so you can decide where your dollar—and your family—can go further.
My name is Anthony Mosley, and I’m a real estate broker in Bentonville, Arkansas, helping families relocate to Northwest Arkansas and surrounding regions. Here’s the data you need to make an informed move.
Arkansas vs. Louisiana: State Nicknames & First Impressions
Before we go deep into the numbers, here’s something fun:
Arkansas – “The Natural State”
Known for:
- Mountains, lakes, and rivers
- Outdoor recreation
- Beautiful scenery and wildlife
Louisiana – “The Pelican State” / “Sportsman’s Paradise”
Known for:
- World-class fishing and hunting
- Coastal culture and cuisine
- Deep cultural heritage
Both states are rich in nature—but the cost of enjoying that lifestyle is where things start to differ.
Cost of Living: Is Arkansas Cheaper Than Louisiana in 2025?
To compare apples to apples, let’s look at the most expensive cities in each state:
- New Orleans, LA
- Bentonville, AR
Even though Bentonville is Arkansas’ most expensive city, New Orleans has about 300,000 more residents.
⭐ Forbes Cost of Living Comparison (2025)
If you earn $200,000 in New Orleans, you would need just $171,771 to maintain the same lifestyle in Bentonville.
That’s roughly a 17% lower cost of living.
Regional Price Parity (RPP)
Source: Bureau of Economic Analysis
- Arkansas RPP: 86.5
- Louisiana RPP: 88.3
Both are cheaper than the national average, but Arkansas edges out Louisiana in statewide affordability.
Housing Costs: Arkansas vs. Louisiana
Here’s where Arkansas shines.
Statewide Median Home Prices (Sept 2025 – Redfin)
- Louisiana: $253,100
- Arkansas: $267,600
Statewide, they’re similar.
But city-to-city? The gap becomes huge.
City Comparison: Bentonville vs. New Orleans
- New Orleans Median Home Price: $827,716
- Bentonville Median Home Price: $487,636
That’s a $340,000 difference.
You could buy a home in Bentonville for nearly 40% less than in New Orleans’ higher-priced neighborhoods.
And if you’re coming from Baton Rouge, Lafayette, or Lake Charles instead, the savings can be even greater.
Population Trends: Why Are People Leaving Louisiana?
Population data paints a clear picture.
Louisiana Population (World Population Review)
- Declining since 2016
- Bottomed around 2022–2023
- Currently: ~4.6 million
Arkansas Population
- Slow, steady growth since the 1960s
- Brief flat period in 2019–2020
- Rising again
- Current: ~3.1 million
Why People Leave Louisiana
The top reasons cited:
- Rising homeowners insurance
- Hurricane risk
- Crime perceptions
- Better job opportunities elsewhere
Why People Move to Arkansas
- Lower cost of living
- Lower insurance costs
- Strong job market (Walmart, Tyson, JB Hunt)
- Access to trails, mountains, lakes, and parks
- More affordable housing
Insurance Reality Check: Louisiana vs. Arkansas
Louisiana homeowners have been experiencing some of the highest insurance premiums in the U.S. due to hurricanes.
Arkansas rates have risen too—but:
- Tornadoes + hail cause less catastrophic loss than hurricanes
- Fewer insurers have pulled out of Arkansas
- Many relocating families see immediate insurance savings
For many Louisiana residents, rising insurance is the final push to leave.
Crime & Safety: How the States Rank
Source: U.S. News & World Report
Louisiana
- 50th overall (last)
- Best category: Healthcare (44th)
- Worst category: Crime & Corrections (50th)
Arkansas
- 44th overall
- Best category: Fiscal Stability (15th)
- Worst category: Crime & Corrections (48th)
Neither state ranks high nationally—but Arkansas typically sits a bit higher.
💡 If crime is a deciding factor for your move:
Use crimegrade.org to compare your exact ZIP code to any Arkansas ZIP code, such as:
- 72712 (Bentonville)
- 72713 (Cave Springs/Centerton)
- 72756 (Rogers)
Job Market: Which State Has More Opportunity in 2025?
Many people moving from Louisiana to Arkansas say they came for:
- Better job opportunities
- Higher wages in Northwest Arkansas
- More stable industries
Northwest Arkansas Major Employers
- Walmart HQ (Fortune #1 company)
- Tyson Foods HQ
- J.B. Hunt HQ
These three Fortune 500 companies are within 20 minutes of each other.
This concentration of corporate jobs has created:
- Rapid population growth
- Strong home values
- A thriving economy
- Thousands of supporting jobs in marketing, tech, logistics, and supply chain
Taxes: Arkansas vs. Louisiana in 2025
Louisiana
- Flat 3% income tax
- Same rate whether you make $50K or $5M
Arkansas
- Graduated income tax
- Rate depends on income level
Sales Tax Comparison
- New Orleans: 10%
- Bentonville: 9.5%
The difference?
If you spend $100,000/year on taxable goods, that’s only $500 more in New Orleans.
Lifestyle Comparison: Which State Fits You Best?
Arkansas is ideal if you want:
- Mountains, hills, hiking trails
- Crystal-clear lakes and rivers
- Mountain biking (world-class)
- A central U.S. location
- A quieter lifestyle with lower insurance and housing costs
Louisiana is perfect if you love:
- Coastal culture
- Fresh seafood
- Warm climate
- Pro sports teams (Saints & Pelicans)
- The bayou lifestyle
Both states have charm—the question is: Which lifestyle fits your next chapter?
Fun Facts: Arkansas vs. Louisiana
Celebrities from Arkansas
- Johnny Cash
- Billy Bob Thornton
- Scotty Pippen
- John Grisham
- Alice Walton
- President Bill Clinton
Celebrities from Louisiana
- Anthony Mackie
- Carl Weathers
- Lil Wayne
- Trace Adkins
- Tim McGraw
- Terry Bradshaw
- Reese Witherspoon (born there)
- Britney Spears (raised there)
Funny Laws
- Louisiana: Illegal to tie an alligator to a fire hydrant
- Arkansas: Illegal to keep an alligator in a bathtub
- Little Rock: Illegal to walk your cow down Main Street after 1pm on Sunday
You can’t make this stuff up.
So… Who Should Move to Arkansas?
Move to Arkansas if you want:
✔ Lower cost of living
✔ Lower housing prices
✔ Lower insurance
✔ Growing job opportunities
✔ A natural, outdoors-focused lifestyle
✔ Access to fast-growing regions like Northwest Arkansas
Stay in Louisiana if you love:
✔ Coastal culture
✔ Seafood
✔ Pro sports
✔ Mild winters
But no matter what—owning an alligator probably won’t work out well in either state.
Thinking About Moving to Arkansas?
If you’re considering a move, I’d love to help.
📬 Grab my free Northwest Arkansas Relocation Guide
I mail it out weekly—just request it and it’s on the way.
Whether you’re leaving Louisiana or another state, you now have a clear picture of how far your dollar can stretch in Arkansas.
📞 Let’s Connect
Let’s talk about your goals, budget, and timeline so we can make your move a smooth and successful one. Whether you’re headed to Bentonville, Rogers, Springdale, or anywhere in Northwest Arkansas, I’m here to help.
Have questions or thinking about making a move to Bentonville or Northwest Arkansas?
Reach out anytime—or watch the full video on my YouTube Channel.
— Anthony Mosley, Real Estate Broker, Bentonville, Arkansas