Home affordability in central Arkansas |
Recently New York City Mayor-Elect Zohran Mamdani and Donald Trump met in the Oval Office and agreed that "affordability" has become a major issue in this country. The POTUS has re-labeled the word since then, but he knows that it's not going away. If these two agree on something this large, it means we should have already taken action.
Tip O'Neill's famous quote "all politics is local" is probably a little passé; it is undeniable, though, that "all real estate is local." Always has been, always will be. So where are we on affordability in central Arkansas?
Over the last five years, 10 major cities including Benton, Bryant, Cabot, Conway, Jacksonville, Little Rock, Maumelle, North Little Rock, and Sherwood have added between 7,000-8,000 new single-family homes and 5,000–6,000 new multifamily/apartment units. That's roughly three new single-family homes for every two new multifamily/apartment units.
Is that ratio a "good thing"? The answers will vary by opinions and values. Regardless, multifamily/apartment builders will continue to build at those ratios so long as the microeconomics sustain profit.
"It's a Wonderful Life," a 1946 holiday classic, always airs this season. George Bailey at one point in the movie advocates the need to make house loans to people living on the margins,........