The Northwest Arkansas Council, in partnership with the University of Arkansas’ Center for Business and Economic Research, presented the 2024 State of the Northwest Arkansas Region report this month, highlighting both economic progress and the growing pressures of affordability across the region.

Presented to a full audience of over 400 attendees at the Fayetteville Town Center, the report underscored the region’s rapid population growth, with an increase of more than 13,500 residents this year, bringing the total to 590,295. This population boost has fueled local job growth, with a 2.8% increase in nonfarm employment, adding approximately 8,300 new jobs since last year. The regional unemployment rate remained low at 2.4%, positioning Northwest Arkansas among the top performers compared to peer cities such as Austin, Raleigh, and Provo.

Opening the presentation, Nelson Peacock, President and CEO of the Northwest Arkansas Council, emphasized the region’s commitment to nurturing entrepreneurial talent. 

“We want to make sure that if the next Sam Walton, J.B. Hunt or Don Tyson is in this room, a student at the University of Arkansas, or one of the 30+ people who move here each day, they have every tool to build and scale the next great American company right here at home,” said Peacock.

Economic gains were also reflected in a 5.9% rise in median household income, now at $77,695, marking the fastest growth rate among comparable regions. However, housing costs continue to outpace income growth, with median home prices increasing by 5.4% to $346,900. 

“Wages have been growing, marking one of the fastest periods for income increases,” said Mervin Jebaraj, director of the Center for Business and Economic Research. “However, home prices have outpaced this growth significantly in our region and across the country.” 

This means the typical Northwest Arkansas resident now spends nearly half their income on housing and transportation, a percentage among the highest in similar high-growth areas.

In addition to affordability concerns, the report noted a growing need for infrastructure to support sustainable growth. The Council’s Groundwork initiative is collaborating with local governments to address housing density and zoning solutions, aiming to provide more affordable and accessible housing options.

To address these challenges, a panel of corporate leaders from J.B. Hunt, Tyson Foods, and NewRoad Capital Partners shared insights and strategies for driving change by fostering the startup ecosystem. The discussion, moderated by Serafina Lalany, executive director of StartupNWA, highlighted how these companies are leading innovation within the region.

Panelists underscored that by aligning resources and fostering partnerships, Northwest Arkansas can create a support system where entrepreneurs are encouraged to grow and stay within the region. Key takeaways included the need for corporate mentorship, accessible infrastructure and ongoing public-private partnerships, all of which contribute to an environment where startups can scale effectively and contribute to the community’s prosperity.

“The Northwest Arkansas Council, University of Arkansas and corporate partners are critical to building a robust entrepreneurial environment,” said Chris Sultemeier. “It’s about creating that flywheel of support that fosters innovation.”

Read the full report here.