Northwest Arkansas’ market-based housing reforms

by Greg Kaza (gregkaza@yahoo.com) 185 views 

There is a shortage of affordable housing in Northwest Arkansas, a fact noted by consumers, foundations, public officials and in media reports. Every city in the region is affected by the shortage despite an economic boom.

It’s a supply-and-demand issue. Affordable housing demand exceeds supply, a difficult climate for consumers. But look beneath the surface and it’s apparent Northwest Arkansas policymakers are working to expand supply with market-based solutions that include regulatory and zoning reforms.

Consider the following local actions.
Fayetteville
In April, the city council unanimously declared a housing crisis and created a task force to propose solutions. It includes a home builder, residential contractor developer and architect. Objectives include identifying “specific regulatory and market barriers to the production of sufficient, safe and affordable housing in Fayetteville.” The panel, in August, discussed ideas focused on “cost and availability of housing.” These included developers having “the option to hire their own inspectors to submit reports,” instead of “waiting on city inspectors.” Fayetteville also recognized the importance of zoning laws. A city plan “includes changes to existing zoning to allow housing and to move future development toward” goals “of improving pedestrian safety, creating walkable neighborhoods and allowing infill development closer to the street.”

Springdale
A 2019 Walton Family Foundation report noted Springdale adopted a form-based code to “provide flexibility and predictability for the development community.”

Greg Kaza

It explains “a form-based code is a land development regulation that fosters predictable built results and a high-quality public realm by using physical form (rather than separation of uses [used in conventional zoning])” as the organizing principle. In March, developers broke ground on “a 77-unit mixed-income apartment” complex partially funded by a Walton Family Foundation grant. The complex includes “30 units for households making less than $92,000 a year.”

Rogers
A 2018 city report noted, “Housing cost burden is one of the most prevalent problems facing Rogers residents. The severely cost-burdened owners and renters are the low income. One of the city’s biggest needs is affordable housing.” A 2021 city report said, “One of the biggest needs is affordable housing.” It also notes an area near downtown has “become a tiny home neighborhood” with homes ranging from $35,000 to $55,000. A 2024 city report stated, “We now have more zoning that calls for affordable housing as well as zones that have a mixture of housing to include affordable housing.” A second tiny home subdivision was completed near downtown. Changes to Rogers’ development code allow denser housing, including more duplexes and triplexes.

Bentonville
In 2023, the Bentonville Housing Affordability Workgroup issued findings and recommendations of a year-long study of “the affordable housing crisis.” The panel was established by a city council resolution in 2021. It concluded, “Much of Bentonville’s workforce struggles to find affordable housing within the city,” terming it “one of the most pressing issues facing its workforce.” The solution, termed Project Arrow, included recommendations to expand housing supply through “reductions in minimum required parking (size and number of spaces); reduced right-of-way widths; increases in allowable height;” and allowing denser dwelling units and more compact development patterns. The report recommended an “expedited development cycle” for projects “that meet pre-defined criteria.” A 2021 Walton Family Foundation study noted “continuation of current low density, predominantly single-family development patterns will have serious negative implications” for affordability.

In sum, Northwest Arkansas stakeholders are using some market-based reforms to expand affordable housing supply.

Editor’s note: Greg Kaza is executive director of the Arkansas Policy Foundation, a Little Rock think tank founded in 1995. The opinions expressed are those of the author.

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