Is Northwest Arkansas (NWA) still affordable for the average family, or has the region finally priced people out? With rising home prices, inflation, and an influx of new residents, this is easily one of the most common questions I get from anyone considering a move to Bentonville, Rogers, Fayetteville, or Springdale.
In this guide, we break down the true cost of living in Northwest Arkansas, including housing, everyday expenses, lifestyle value, and overall affordability compared to the state and the nation.
The National Picture: Is the U.S. Still Affordable?
Before answering whether Northwest Arkansas is affordable, it helps to zoom out.
Across the United States:
- Inflation in 2021–2022 pushed the price of food, goods, and homes upward faster than wages.
- Tariffs and supply chain issues increased construction costs, affecting home prices nationwide.
- Housing supply remains far below demand, which keeps prices elevated.
Even if household income stayed the same, the cost of living accelerated, creating a gap that many families still feel.
Is Arkansas an Affordable State? Absolutely
While the U.S. overall has become more expensive, Arkansas remains one of the most affordable places to live.
Here’s how Arkansas ranks according to multiple 2025 sources:
- #1 Most Affordable State – Yahoo Finance
- #1 Most Cost-Effective State – U.S. News & World Report
- #1 Most Affordable State – PatriotSoftware
- #5 Most Affordable State – Summerfairs.com
- #8 Most Affordable State – North American Van Lines
- #10 Most Affordable State – FreedomForAmericans.org
Major cost categories include:
✔️ Groceries
✔️ Utilities
✔️ Gas
✔️ Housing
✔️ Taxes
Arkansas consistently performs well across all of them.
But What About Northwest Arkansas?
This is where many people get confused.
Just because Arkansas is affordable doesn’t mean Northwest Arkansas is cheap.
NWA functions more like a mid-market metro (think Nashville, Kansas City, or Raleigh), largely because of:
- Corporate headquarters (Walmart, JB Hunt, Tyson Foods)
- Rapid population growth
- High-demand housing markets
- Strong lifestyle amenities
So yes—NWA can be expensive depending on where and how you live.
Lifestyle Value: What You Get for the Cost of Living in NWA
Northwest Arkansas offers a lifestyle that many cities can’t match—especially for the price.
Outdoor & Recreation (Mostly Free)
- Hundreds of miles of world-class mountain biking trails
- State parks, lakes, rivers, and natural areas
- Expanding Razorback Greenway and new connector trails
- Running, hiking, fishing, and camping access everywhere
Arts, Culture & Community
- Free museums, concerts, and festivals
- Some of the best schools in Arkansas
- Local events, farmers markets, concerts, and community activities
- Walkable and bike-able environments in many towns
The lifestyle-to-cost ratio is one of the biggest reasons people move here.
Everyday Costs in Northwest Arkansas
Many everyday expenses in NWA are similar to or below the U.S. average.
Utilities
Very close to the national average — varies by home size and efficiency.
Gas Prices
Arkansas usually has some of the cheapest gas in the country.
Commute Times
Average commute: 22 minutes
(Compare that to Denver, Dallas, or Southern California, where 22 minutes barely gets you out of the neighborhood.)
Groceries, Haircuts, Dry Cleaning
Use tools like Forbes Cost of Living Calculator to compare your current city to Bentonville, Rogers, or Fayetteville.
Across most categories, NWA is either cheaper or similar to national averages.
Inflation vs Appreciation (Why Prices Feel Higher)
You may have noticed dramatic cost increases over the last 25 years—like a 20oz Coca-Cola jumping from $0.79 to $3.
- That’s inflation (your dollar buys less).
- Home appreciation, however, is different—your asset gains value.
Both have happened simultaneously in NWA.
Housing Costs: The Biggest Factor in NWA Affordability
This is where most affordability concerns come from.
National Median Home Price (2025)
According to the National Association of Realtors, the U.S.’s median existing home price is:
$422,400
Arkansas Median Home Price
Sources vary widely, but Zillow’s July number is the most consistent:
$244,250 (almost $200K below national)
Northwest Arkansas Home Prices (Benton County)
Last 30 days, Benton County median sale price for single-family homes:
$444,450
This is NWA’s most expensive county.
Is a $444,450 Home Affordable in NWA? Let’s Do the Math
Using a $90,000 median household income (a conservative estimate):
Lenders often use the 28/36 rule:
- No more than 28% of income on housing
- No more than 36% on total debt
28% of $90,000 = $2,100/mo housing budget.
When we plug a $444,450 home into a mortgage calculator at 6.375% interest:
➡️ Monthly payment exceeds $2,500 (not affordable under the 28% rule)
To make that $444K home fit the budget, you’d need:
- ~40% down or
- ~3.9% interest rates (which we likely won’t see soon)
So What CAN You Afford in NWA on a $2,100 Budget?
With 20% down at today’s rates, the affordable price point is closer to:
~$327,000
People often assume that “NWA has no affordable homes,” but that’s not accurate.
Homes Sold Under $300,000 in Benton County (2025)
Since January:
➡️ 750+ homes under $300K
➡️ 1,000+ homes under $300K for 3 bed / 2 bath models
By city:
- Bella Vista – 86 homes
- Bentonville – 65 homes
- Centerton – 43 homes
- Pea Ridge – 87 homes
- Rogers – 101 homes
- Siloam Springs – 228 homes
They may not be downtown Bentonville—but they are available.
So… Is Northwest Arkansas Still Affordable?
The answer: It depends.
Affordable compared to what?
- Compared to the national average → Yes, NWA is far more affordable
- Compared to the state average → NWA is more expensive
- Compared to major metros → Still very affordable for lifestyle value received
- Compared to your income → Depends on household structure, debt, and expectations
- Compared to downtown Bentonville → Many people ARE priced out
Affordability in NWA ultimately comes down to:
✔️ Your budget
✔️ Your commute tolerance
✔️ Your location preferences
✔️ Your lifestyle expectations
There is affordable housing in NWA — just not always where people ideally want to be.
Final Thoughts
Northwest Arkansas isn’t the hidden gem it used to be—but it still offers one of the best cost-to-lifestyle values in the country. Whether NWA is affordable for you depends on what you’re comparing it to and what you expect out of your housing and lifestyle.
Now that you know the numbers, you’re one step closer to deciding if Northwest Arkansas is the right fit.
📞 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