Value of a Buck Varies; NWA Dollar Holds its Own

Benjamin Franklin’s paper smile beams a little brighter in Springdale, Rogers and Fort Smith than in Fayetteville, according to a salary calculator on Homestore.com.

Home-owning salaried workers who make $60,000 per year living in Fayetteville could make $1,050 less per year living in Rogers and maintain a similar lifestyle, according to the site. As part of Homestore.com’s network of real estate e-commerce addresses, the site targets professionals contemplating a relocation.

The calculator formulates a community’s cost of living by considering the tolls of housing, utilities, consumables, transportation and other available services. It does not take into account the expense of relocating or paying taxes in the region.

According to the Homestore.com calculator, that same $60,000 lifestyle in Fayetteville is available for $59,897 in Springdale, $58,950 in Rogers, $54,690 in Fort Smith and $57,825 in Houston. Basically, $1 goes further in these towns than Fayetteville.

However, a $60,000 Fayetteville salary would come up short in some cities. To maintain a similar style of living, a person would need to make $60,473 in Baton Rouge, La., $61,255 in Little Rock, $62,902 in New Orleans, $62,991 in Shreveport, La., and $66,078 in Dallas.

The cost of living differences add up for some Northwest Arkansans.

Thirteen of the highest paid public company executives in the area made more than $1 million last year, including salary, exercised stock options, and bonuses. For them, the different costs of living can add up to tens of thousands of dollars.

On a smaller scale, a $125,000 salary in Fayetteville is comparative to a $140,114 salary in Dallas. More than 1,100 people in Northwest Arkansas would understand that difference because they earn combined household income of $125,000 or more. That estimate stems from Homestore.com’s 1999 tally of information from 10 Washington and Benton County ZIP codes.

In this area, land value reflects the changing Northwest Arkansas dollar.

For example, assessed values for the original lots of Primrose Estates, a Rogers subdivision, increased 9.8 percent from 1985 to 2000, according to Benton County Assessor’s records. The land assessment alone rose 42 percent in that time.

Lots in Rolling Oaks, another Rogers subdivision, increased an average of 65 percent for the comparable period. Land value in the neighborhood more than doubled.

Harris McHaney Shearin Realtor Pat Morrison said the two biggest factors affecting real estate prices are transportation related. Most recently, the addition of the Northwest Arkansas Regional Airport has boosted land value on the Bentonville and Rogers side of the airport.

In 1991, the final section of U.S. Highway 71 between Fayetteville and Bella Vista opened, forming a corridor of valuable real estate.

A population growth spurt also made land value increase. From 1980 to 2000, combined Washington and Benton County populations grew 88 percent from 165,449 to 311,121, according to the U.S. Bureau of the Census.