Insight into Northwest Arkansas's 2025 First Half Multifamily Market
Insight into Northwest Arkansas's 2025 First Half Multifamily Market
Multifamily Market Report: Northwest Arkansas — First Half of 2025
*Presented by Mason Capital Group Real Estate Investment & Trust*
*Source: The Skyline Report, Center for Business & Economic Research, Sam M. Walton College of Business, University of Arkansas*
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Executive Summary
Northwest Arkansas’s multifamily housing market is expanding rapidly. According to the Skyline Report for the first half of 2025, vacancy rates are shifting, new construction is booming, and lease rates continue to climb. Despite a slight rise in regional vacancies, investor activity remains strong across Benton and Washington Counties.
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Market Highlights
- Regional vacancy rate: **3.7%** (up from 3.3% in 2H 2024)
- Adjusted vacancy rate (excluding new builds): **3.2%**
- New complexes added: **7** (639 units, 320 available)
- Average lease rate: **$1,094.08/month** (up from $1,075.18)
- Building permits issued: **144 permits** across 25 projects totaling **$436.6M**
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City-Level Trends
**Bentonville**
- Vacancy: **6.0%** (up from 4.0%) — highest in the region
- Under construction: 1,700+ units
- Announced: 4,900 units (63.8% of current inventory)
**Fayetteville**
- Vacancy: **3.2%** (up from 3.0%)
- Under construction: 2,900+ units
- Announced: 8,300 units (44.5% of current inventory)
**Rogers**
- Vacancy: **5.0%** (down from 5.3%)
- Under construction: 1,200+ units
- Announced: 6,800 units (83.4% of current inventory)
**Springdale**
- Vacancy: **1.7%** (down from 1.9%)
- Under construction: 1,500+ units
- Announced: 600 units (22.7% of current inventory)
**Siloam Springs**
- Vacancy: **1.0%** (down from 1.3%) — lowest in the region
- Under construction: 20+ units
- Announced: 280 units (20.2% of current inventory)
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Building Permit Activity
| City | Projects | Total Permit Value |
|-----------------|----------|--------------------|
| Bentonville | 6 | $71.5M |
| Fayetteville | 11 | $262.1M |
| Rogers | 4 | $56.6M |
| Springdale/Tontitown | 4 | $46.5M |
**Notable Developments**
- *Current on Center (Fayetteville):* $60.5M
- *The Summit (Rogers):* $36.0M
- *Via Emma (Springdale):* $33.5M
- *McCauley Place (Bentonville):* $26.8M
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Vacancy Rates by Floor Plan (1H 2025)
| Floor Plan | NWA Avg | Bentonville | Fayetteville | Rogers | Springdale | Siloam Springs |
|----------------|---------|-------------|--------------|--------|------------|----------------|
| By the Bed | 4.2% | — | 4.2% | — | — | — |
| One Bedroom | 4.1% | 5.6% | 2.8% | 5.9% | 2.5% | 0.2% |
| Two Bedroom | 2.7% | 4.8% | 2.0% | 3.3% | 1.5% | 0.8% |
| Three Bedroom | 4.6% | 9.6% | 3.6% | 6.6% | 0.7% | 3.4% |
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Lease Rates by Floor Plan
| Floor Plan | Avg Sq Ft | Avg Rent | Rent/Sq Ft |
|----------------|-----------|----------|------------|
| Studio | 551 | $982.26 | $1.78 |
| By the Bed | 420 | $939.09 | $2.24 |
| 1 Bedroom | 665 | $973.56 | $1.46 |
| 2 Bedroom | 964 | $1,118.70| $1.16 |
| 3 Bedroom | 1,304 | $1,471.34| $1.13 |
| 4 Bedroom | 1,707 | $2,088.76| $1.22 |
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Strategic Takeaways for Investors
- Bentonville’s high vacancy may signal short-term softness but long-term growth potential
- Springdale and Siloam Springs offer tight rental markets ideal for stabilized income assets
- Lease rates are rising, especially for larger units — strong demand across demographics
- Permit activity remains robust, with Fayetteville leading in value and volume
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Final Thoughts
The multifamily sector in Northwest Arkansas continues to evolve, offering a mix of stabilized assets and high-growth development opportunities. Mason Capital Group leverages data-driven insights — like those from the Skyline Report — to guide strategic investment decisions and deliver long-term value to our partners.
The Skyline Report — produced by the Center for Business & Economic Research at the University of Arkansas
