Navigating the Bentonville Real Estate Market: A Guide for Investors

Bentonville, Arkansas, ranks in the top 10th percentile of many indices of growth and high-quality living in the United States.

Between 2022 and 2023, Bentonville had the fourth-largest population gain in Arkansas, recording a 2.8% growth rate. Indicating that beyond being the headquarters of Walmart and an ideal location for mountain biking trails, the Bentonville real estate market is hotter than a summer day in the Ozarks.

If you're an investor looking to make your mark in this booming town, you've come to the right place.

Let's take a look at how the decades of transformation in the city have impacted the Bentonville real estate market and why this little slice of the South is a big deal for your portfolio.

What's the real estate market like in Bentonville? Spoiler alert: it's very competitive. 

The average home price in Bentonville has been on an upward trajectory, rising by 8.6% since last year, 2023. For context, that's a significant rise compared to a few years ago. 

But it's still more affordable than many other booming markets across the country — making Bentonville a sweet spot for investors looking to capitalize on growth without breaking the bank.

• Average House Rent: $1,228

• Median Listing Home Price: $599,900

• Median Sold Home Price: $469,300

• Sale-to-List Price Ratio: 95.58%

However, with 73% of Bentonville homebuyers looking to purchase within the metropolitan area, June 2024 saw a slight dip in the median sale price of homes in Bentonville — experiencing a 0.74% decline in this month.

For investors, this trend signals potential opportunities for solid returns, particularly in the downtown area. However, if the current trend continues, there may be a shift toward a buyer's market.

For those considering moving here through the services of the movers in Bentonville, AR, offers, it's essential to understand the market shapers and how they exert their influence. 

Some of the factors that influence the Bentonville real estate market include:

• Geography

Bentonville might be small, but it's got some serious geographic perks. With picturesque landscapes and urban convenience, downtown Bentonville is the hottest region in the city.

But you shouldn't sleep on the outskirts. Areas like Bentonville West Central Avenue Historic District are gaining traction. Offering more space and a suburban vibe, all while keeping you close to the heart of Bentonville.

The median sale price in this area was $1.7M as of July 2024. Meanwhile, the Pinnacle area housing market is not as competitive, with the median sale price being $1.6M in July 2024, up 1.6% from last year.

Properties closer to Bentonville's outdoor attractions, like the Coler Mountain Bike Preserve, are hot commodities. 

Note:

If you're looking to invest, consider how proximity to these outdoor areas can impact your property's value.

• Price shifts

Bentonville's real estate prices have been on a fairly steady upward climb. As of February 2022, you could snag a home for $350,000. Today, the median home sale price hovers just below the $500,000 mark, which is higher than the national average — in some prime locations, it's even higher. 

Yet, you must note that the average homes sell for about 1% below the list price, with a median market stay of 14 days after listing. The hot homes, though, sell at the list price. What this suggests is a flexible market that may favor an investor.

But what's driving these shifts in the average home price in Bentonville, Arkansas? A combination of factors, including Bentonville's booming job market, increasing population, and the influx of new developments. 

The market is competitive, and investors who get in now could ride the wave of appreciation as the city continues to thrive.

• Rental market dynamics

Like the real estate value of homes, the rent prices in Bentonville have increased by 7%. 

The rental market in Bentonville is buzzing, and for good reason. With a steady stream of new residents moving to the area, leading to a Bentonville population surge, rental properties are in high demand. 

Downtown apartments are being scooped up and rental prices have been creeping up, making it a prime time for investors to consider rental properties. The key here is to target areas with a high demand for rentals, such as neighborhoods close to major employers.

Neighborhoods like Bella Vista East and Woods Creek are popular, with average rents of $2,349 and $2,235, respectively. 

So, as an investor, if you're willing to navigate the short-term rental game, you could see some sweet returns, especially during peak tourist seasons.

• The buyer frenzy

According to Redfin analysis, the Bentonville real estate market is active and competitive but not frantic. 

Homes are selling quickly, often within days of hitting the market. However, when it comes to bidding wars, homes rarely sell above the listing price. 

Only in highly sought-after areas do homes sell at the listing price. Yet, the market is very competitive. This increased sales activity is partly due to the influx of new residents and the rising popularity of Bentonville as a great place to live and work. 

• Scarce inventory

Basic economics: when demand exceeds supply, prices go up, and vice versa. 

The demand for homes in Bentonville far outweighs the supply, causing prices to rise. It creates bidding wars, requiring buyers to be quick and decisive. This scarce inventory, with too few unsold house units, has created a seller's market, where sellers can command top dollar for the available homes.

But here's the silver lining for investors: this low inventory means plenty of opportunity exists to capitalize on new developments and build-to-rent projects.

Keeping an eye on upcoming developments and planning your investments around them as an investor could be a winning strategy.

• Type of housing available

The type of housing available in Bentonville also influences how the market moves. Whether you're into modern condos, suburban homes, or apartments, Bentonville's got it all. 

For investors, this variety is gold. You can cater to different demographics that have varying housing preferences. But if you want to invest in the market, condos might just be your big break. 

Within the last 30 days, condo prices have risen by 36% in Bentonville, while houses and apartments saw only an 11% and 8% jump in rental prices, respectively, indicating that condos sell well here.

Bentonville housing market is on the rise, and all signs point to continued growth. 

While the town's population continues to rise and ongoing investments in infrastructure, education, and cultural attractions peak, this trend shows no sign of slowing down.

As it stands, Bentonville's market appeals to remote workers and families, which would cause companies to embrace flexible work arrangements. 

This is especially true for those seeking a high quality of life with modern amenities in a relatively quiet environment and families who want to use the city's good schools to educate their children.

So, what's the deal with the Bentonville real estate market? It's dynamic, diverse, and full of opportunity. 

Whether you're looking for a more pricey downtown home or a suburban haven, understanding what influences the market is essential for making informed decisions as an investor.

The influence of geography, price shifts, rental dynamics, and inventory all factor in different ways to keep the real estate market competitive. 

There is no doubt about it: Bentonville is on the rise, and if you play your cards right, your investment portfolio could see just the right levels of growth as well.