Home Values and Ownership in Springdale, Arkansas: A Decade of Growth in Tyson Foods' Hometown
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Springdale, Arkansas, a vibrant city located in the heart of the Ozarks, has experienced significant growth and change over the past decade. Known for its diverse economy and as the headquarters of Tyson Foods, Springdale has seen fluctuations in homeownership rates, average home prices, and average rent prices. The city has generally maintained a balanced mix of owners and renters, with homeownership rates hovering around 50-55% throughout the years. Average home prices have shown a consistent upward trend, while average rent prices have also increased, albeit at a more moderate pace.
The relationship between homeownership rates and average home prices in Springdale presents an interesting dynamic. In 2013, when the homeownership rate was 49%, the average home price was $126,175. As average home prices steadily increased, reaching $173,927 in 2018, the homeownership rate rose to 52%. This trend continued, with the average home price climbing to $281,765 in 2022, while the homeownership rate remained relatively stable at 51%. This suggests that despite rising home prices, Springdale residents have maintained their ability to purchase homes, possibly due to strong economic conditions in the area.
Federal interest rates have played a role in shaping homeownership trends in Springdale. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates fluctuated between 49% and 54%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable around 52-53%. This stability in homeownership despite rising interest rates may indicate other factors, such as local economic strength, influencing housing decisions in Springdale.
Renter percentages and average rent prices in Springdale have shown some correlation over the years. In 2013, when the renter-occupied percentage was 51%, the average rent was $638. As the population grew from 73,795 in 2013 to 82,397 in 2017, the average rent increased to $756, while the renter percentage decreased slightly to 47%. By 2022, with a population of 85,844, the average rent had risen to $891, and the renter percentage increased to 49%. This suggests that despite rising rents, Springdale has maintained a significant renter population, possibly due to factors such as job growth and the city's attractiveness to young professionals.
Looking at the most recent data, the average home price in Springdale reached $297,918 in 2023 and further increased to $310,057 in 2024. This represents a substantial 10% increase from 2022 to 2024. Concurrently, interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may present challenges for potential homebuyers in the near future.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Springdale will continue to rise, potentially reaching around $350,000 to $375,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections assume a continuation of current economic conditions and growth patterns in the city.
In summary, Springdale has demonstrated resilience in its housing market, maintaining a balance between homeowners and renters despite rising home prices and rents. The city's economic strength, particularly its diverse job market, has likely contributed to this stability. However, the recent sharp increases in both home prices and interest rates may pose challenges for future homebuyers. As Springdale continues to grow, it will be crucial to monitor how these trends evolve and impact the city's housing landscape.
