Northwest Arkansas's 2025 First Half Residential Market
Insight into Northwest Arkansas's Residential Market First Half 2025
Residential Market Report: Northwest Arkansas — First Half of 2025
Presented by Mason Capital Group Real Estate Investment & Trust
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Executive Summary
Northwest Arkansas’s residential market continues to show resilience and long-term growth. According to the latest Skyline Report, home prices are climbing, new construction remains strong, and absorption levels are holding steady despite a slight dip in total sales volume.
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Home Price Trends
- Benton County: Average home price reached $471,427
- +4.8% from 2H 2024
- +8.9% year-over-year
- +73.0% over five years
- Washington County: Average home price reached $417,489
- +3.8% from 2H 2024
- +7.2% year-over-year
- +74.6% over five years
- Madison County: Average home price reached $321,676
- +23.2% from 2H 2024
- +25.7% year-over-year
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Sales & Construction Activity
- Total home sales: 5,049
- ↓5.4% from 2H 2024
- ↑5.2% year-over-year
- New construction sales: 1,844 homes
- 36.5% of all sales
- 5th highest percentage in Skyline history
- Building permits issued: 2,929
- ↓2.6% from 2H 2024
- 4th highest total in Skyline history
- Breakdown:
- Benton County: 2,010
- Washington County: 904
- Madison County: 15
- Includes 124 permits from unincorporated Benton County
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Subdivision & Lot Development
- Active subdivisions: 380
- Total lots identified: 22,174
- Lots approved (preliminary/final): 15,381
- Empty lots across all counties: 4,784 (↑ from 4,433 in 2H 2024)
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Construction Pipeline
- Homes under construction + starts: 1,772 (↑341 from 2H 2024)
- Completed but unoccupied homes: 670 (stable from 665 in 2H 2024)
- Absorption: 2,079 homes (↓1.4% year-over-year)
- 4th consecutive report with absorption over 2,000 homes
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Owner Occupancy Rates
- Benton County: 60.0%
- Madison County: 77.4%
- Washington County: 58.9%
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Strategic Takeaways for Investors
- Price appreciation remains strong, especially in Madison and Washington Counties
- New construction is robust, with Benton County leading in permit volume
- **Absorption remains healthy, signaling sustained demand
- Lot development is accelerating, offering future inventory for builders and developers
- Owner occupancy rates suggest long-term stability and community investment
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Final Thoughts
The residential market in Northwest Arkansas continues to offer compelling opportunities for investors, developers, and home builders. Mason Capital Group uses data-driven insights — like those from the Skyline Report — to guide strategic decisions and deliver long-term value across our portfolio.
