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The city of Bentonville, Arkansas is rapidly emerging as the next residential hot spot — with its population and real estate market both experiencing explosive growth in recent years.
Once primarily known as the home of Walmart, Bentonville has transformed into one of the most desirable spots in the US, attracting new residents, businesses and even the attention of high-profile executives.
The city’s population grew by 2.7% in 2023, with a 9.8% increase since 2020 — and experts predict this trend will continue well into the future, with Northwestern Arkansas expected to house over 1 million residents by 2050, according to the Arkansas Democrat-Gazette.
Located in a fast-growing region, Bentonville’s rise has been fueled by other corporate that are headquartered in the area.
“We’re the home of Walmart, and we’re the home of J.B. Hunt and also the home of Tyson, and Walmart has spent a ton of energy making this a very recruitable place,” Kaala House, Managing Partner at The Agency Bentonville, told Fox Business.
“Our market is growing so intensely, especially after COVID, because a lot of people wanted to get out of the city to be outdoors. In the last few years, we’ve even become the mountain biking capital of the US in Bella Vista, which is making us extremely recruitable for Walmart.”
The influx of new residents has put pressure on Bentonville’s housing market, with 4,799 home sales recorded in Benton County and two nearby counties in just the first six months of 2024. That represents an 8.5% jump in sales compared to the same period last year, and 39.5% of the homes sold were new construction.
However, inventory is at an all-time low, with many homeowners unwilling to sell due to another pandemic-era phenomenon.
“There’s a lot of people holding on to that COVID two-point interest rate … they don’t want to sell because they have such a great rate,” House said. “Prices have gone up so much since that time … we have a lot of new construction inventory right now. If we closed 29 new houses a day, we still wouldn’t have enough houses, because we average 37 people a day increase in population.”
Despite the rapid growth, Bentonville is currently experiencing a slight shift towards a buyer’s market, as factors like rising interest rates and uncertainty surrounding the upcoming election influence the real estate landscape.
Still, experts say the city’s boom shows no signs of slowing down, particularly with Walmart’s plans to open a new “Home Office” campus next year, which is expected to bring even more people to the area.
“As Walmart keeps recruiting and all these companies here keep bringing people to live in Northwest Arkansas, we’re just going to keep growing and keep seeing more businesses move into the area, including more restaurants,” The Agency Bentonville agent Katlyn Munch told the outlet.
Walmart’s recruitment efforts have been a key factor in Bentonville’s population surge.
The retail giant has asked many of its remote workers to relocate to Bentonville, although employees are also given the option to move to Hoboken, New Jersey, or Southern California.
In addition to Walmart’s direct impact, many of the companies that do business with the retail giant also have a presence in the area, which has further contributed to Bentonville’s rapid expansion.
Surrounding areas are booming as well, with many residents seeking more affordable housing options after being priced out of Bentonville.
The average home price in Benton County hit $430,000 in the first half of 2024, representing a 72.5% increase over the past five years, according to the Skyline Report.
Bentonville’s transformation hasn’t gone unnoticed by outsiders either. Blackstone COO Jon Gray recently sang the city’s praises in a viral LinkedIn video, calling it a “bucket list” destination.
“This is a place to add to the bucket list,” Gray said in the video while out for a jog in the area.
“They have amazing bike trails here, museums, unbelievable food. The Walton family has done an incredible job. This is obviously the home of Walmart, an incredible company that serves customers all over the world, delivering value and creating so many jobs. And this is just a fun spot. I’m definitely coming back here.”