Over the past 12 months, apartment rent in Northwest Arkansas rose 7.1 percent while occupancy rate slipped 0.5 percent, according to a multifamily housing report.
The mid-2016 Northwest Arkansas Apartment Market Survey, completed by CBRE, compared data from July to a year ago for apartment complexes in Bentonville, Fayetteville, Rogers and Springdale.
A thriving economy and unprecedented population growth contributed to the strong performance in multifamily housing, the report shows.
Average rent increased $43 to $651 per month. Rent for three-bedroom, two-bath units increased 13 percent, or $115, to $995 per month.
Occupancy rate decreased to 97.5 percent, from 98 percent. Rogers posted a 1.5 percent drop in the rate to 98 percent, from 99.5 percent. The decrease was offset by Springdale’s 1 percent increase to 99 percent, from 98 percent.
Sales of apartment complexes with 50 or more units were down 57 percent to three. Average sales price was $63,500 per unit.
The number of sales are expected to continue at an above-average pace because of the low interest rate and strong investor demand.
This year, eight apartment complexes, totaling 2,069 units, were under construction. Of those eight, 157-unit Towne Park @ Har-Ber in Springdale has been the only one to open so far. The largest is the 484-unit The Links at Fayetteville Phase II.
Four student housing properties, totaling 652 units and 1,627 bedrooms, are nearing completion for the fall semester at the University of Arkansas.
In the near future, CBRE expects rent to continue to increase.