Northwest Arkansas residential construction off to good start in 2015

There’s no shortage of work for construction crews in Northwest Arkansas as local residential and commercial construction projects continue to pop up in the region.

New construction permits issued in January among the four largest cities totaled $36.235 million which consisted of 60% new home starts and the balance in commercial projects. However, the overall tally in January 2014 was $46.078 million, thanks to a unique $20.3 million project permitted in downtown Bentonville during 2014.

Residential permits rose to 87 new starts, up from 70 a year ago. Permit values also increased by 80% from the $20.119 million reported in January 2014. The residential permit values were also up significantly from the $20.888 million reported in January 2014 for the combined cities of Fayetteville, Springdale, Bentonville and Rogers.

Bentonville’s housing market shows the most activity last month as the city issued 36 new permits with a value of $10.337 million, up compared to 28 permits worth $8.914 million a year ago. The average permit value for the homes was $288,273 in January, the highest average among the four cities in this report.

Residential building in Rogers rose sharply from a year ago as the city issued 28 permits worth $5.245 million. This increased more than three-fold from the $1.056 million value and five permits issued a year ago. The average new home permit valuation in Rogers was $187,357, 53% less than in neighboring Bentonville.

Residential construction in Washington County slowed against last year with most of the gap being in Fayetteville. The city issued 10 permits in January that were valued at $2.401 million, down 53% from a year ago. The city of Fayetteville saw a 4% dip in new residential building permits for last year. City officials recently told The City Wire that there are three new residential developments in the planning process which will make more lots available later this year and in early 2016. 

In Springdale, builders got 13 permits for new home starts in January, down compared to 19 permits issued a year ago. The permits valuations slid 25% to $3.722 million in January. The average price of new home construction was $286,307 in January, this was 20% more expensive that neighboring Fayetteville and 52% higher than in Rogers.

Commercial building from medical clinics to retail sites with a smattering of public building projects were begun in January among the four cities. New commercial permits totaled $14.488 million in January.

Permit values were down from the $25.968 million reported a year ago which were lifted higher by the $20.356 million Midtown Center just off the Bentonville Square that was permitted last year. The Midtown Center Multi-Use project is still under construction and slated to open later this year. The Walton family project will feature a Neighborhood Market, which will anchor the center.

NEW COMMERCIAL VALUES
• Bentonville: $7.316 million
• Fayetteville: $900,000
• Rogers: $3.629 million
• Springdale: $2.643 million

In January, the largest permit $7.251 million was issued to the Benton County Sunshine School in Bentonville. Other sizable commercial permits were issued for the following:
• Fayetteville: $900,000 mixed use space — 525 W. Willoughby Road
• Rogers: $1.591 million — JoAnn Fabrics — 206 Promenade Blvd.
• Rogers: $800,000 — Med Express — 1900 W. Walnut
• Rogers: $543,000 — Aspen Dental — 3920 W. Walnut
• Springdale: $1.3 million — Cassady Clinic — 956 Mathias Dr.
• Springdale: $962,236 — Springdale Schools — 110 N. Pleasant St.