Northwest Arkansas Economic Report Reveals Strong Tech Job Growth
Jobs are performing well in Northwest Arkansas, but housing affordability remains a significant challenge.
Driving the News
The Northwest Arkansas Council and the University of Arkansas Sam M. Walton College of Business released their annual report this week detailing the region's economic performance.
Regional Scope
The data encompasses Benton, Washington, and Madison counties.
Key Economic Indicators
- Population growth: The region's population increased 2.6% to 605,547 in 2024
- Income growth: Median household income rose 4.5% from 2023 to 2024 to approximately $81,200
- Wage increases: Average annual wages increased 5.3% to $59,550
- Job creation: Approximately 7,800 net new jobs were created in the region
Economic Challenges
While overall economic indicators are positive, some areas showed slight deterioration:
- Poverty rate: Increased to 11% in 2024, up 0.6% from 2023 (still significantly lower than Arkansas' 15.5% rate)
- Unemployment rate: Rose from 2.4% to 2.7% (lower than the state's 3.5% rate)
Healthcare Dominates Job Growth
Most new jobs are in the healthcare sector, according to Mervin Jebaraj, director at the Walton College's Center for Business and Economic Research.
Tech Sector Breakthrough
High-tech employment surged dramatically with jobs requiring specialized knowledge in fields like engineering, information technology, and aerospace increasing by approximately 8.3%:
- 2023: 13,060 high-tech employees
- 2024: 14,150 high-tech employees
Housing Affordability Crisis
Housing costs have escalated significantly due to an influx of high-income earners relocating to NWA from more expensive housing markets:
- Home prices: Average sold prices ranged from $426,700 (February) to $482,956 (June)
- Rental costs: Average rent climbed to approximately $1,100 per month in 2024
- Historical comparison: Rent was under $800 in 2021 and under $600 in 2015
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