Building Costs Per Square Foot in the State of Arkansas, USA

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Arkansas 1091 Morra Avenue Springdale AR72762 - 4 Beds and 3 Baths with 3 Attached Garages on Gross Floor Area 2460 sqft - Price $490000 Built in 2022_result

Newly Built House in Arkansas 1091 Morra Avenue Springdale AR72762 – 4 Beds and 3 Baths with 3 Attached Garages on Gross Floor Area 2460 sqft – Price $490000 Built in 2022_result

Residential Construction Market Analysis in the State of Arkansas, USA

Building costs in Arkansas are 7% below the national average, and closer to the Mississippi, South Dakota, Nebraska and New Mexico state average by a deviation of 1%. Arkansas is the cheapest state to live in the entire United States, according to recent research on the costs of living across the country. If it is compared with the rest of the states, it has up to 17% lower prices in general, either in the purchase of goods or payment of services. Its costs of basic goods and services are quite affordable, which is making it a pole that attracts many people from all over the country and the world.

This is causing a certain boom in the real estate market, but it is important to understand it before jumping to conclusions. There are many particularities in the real estate and residential construction market, and in this article, we will focus on some of them.

Continue reading this article as next we will delve into the real estate world of Arkansas, in addition to the types of constructions that you can find there, the prices, and what is expected to happen in the near future with the value of the properties and the market in general.

Arkansas Construction Outlook

To understand the construction of Arkansas it is necessary to know certain aspects of its climate since this intervenes to a great extent. Its climate is typical of the central region of the mountainous south of the United States. Normally the four seasons are well marked by their differences, although there is abundant rain in all of them. This means that the climate tends to be humid, instead of arid. In winter there are only a few snowstorms, but the rains are something that is present in Arkansas throughout the year.

This means that all houses and buildings are prepared to prevent the accumulation of water. Roofs are often sloped, allowing rainwater to drain more easily. This is something that can be seen even today in older buildings, as newer ones feature newer drainage technologies.

Residential houses also feature steep roofs that allow for drainage. If they don’t have it, then it’s important to invest in it in some way, otherwise, the roofs deteriorate quickly, causing structural problems in the houses.

Both the residential houses and the buildings have at least some garden space, or plants, since nature is very important in Arkansas, after all, it is not known as The Natural State for nothing.

Arkansas Housing Market Analysis and Forecast

The most expensive areas are those urban and metropolitan areas where the population is denser. Arkansas has six of these areas and the most expensive is Little Rock-North Little Rock-Conway, where prices for goods and services are 3.9% higher than the state average.

This can make you disappointed, but don’t forget that even with that higher price, those cities continue to have values ​​10.8% lower than what can be found in the other states nationwide.

These low prices that you can find for both the purchase and rental of properties in Arkansas mean that it has not been as negatively affected by the changes in the real estate market after the pandemic as it has happened in other states. In fact, last year a total of 21,629 residential properties were sold, and this year the number is expected to rise by 14.52%.

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Properties usually take time to sell, the average is 100 days, although this is mainly due to the difference between the different cities or towns. Places like Little Rock attract more buyers, but other smaller towns do not, which means that properties in those places take longer to sell.

Another surprising fact about the real estate market in Arkansas is that in this state it is more convenient to buy a house than to rent one. This is due to the low price-to-rent ratio, which attracts investors and people who want to buy new houses.

Arkansas Average House Price (Median Home Price)

The median home price in Arkansas is $149,000, although it can be higher or lower depending on where you are in the state. Remember that by median house we mean a house that has 3 bedrooms, 2 bathrooms, a kitchen, a living room, a garage, and a small garden.

In smaller towns like Helena and Conway, you can find median homes for less than $120,000 in good condition, and if you are willing to take your time searching then you can find a median home for less than $100,000, although it may need some repairs.

If you are looking for a piece of land where you can build from scratch, then Arkansas is the perfect place for you. From land to buildings or small houses, you can find everything at a fairly low price (starts from $10,000, varying depending on your location).

Proposed Residential Building Projects in Arkansas

In Arkansas, only in Little Rock and other urban centers are there some building projects. They are not the typical skyscrapers or luxury buildings, but they are buildings to receive middle or upper-class families, with apartments at affordable prices. There is usually a great variety in the type of apartments there are: there are some with 3 bedrooms, others with just one bedroom, and others that are not residential but are designed to be used as offices or studios.

The most common projects are those of residential houses, some a little more luxurious with swimming pools to spend the hot summer, and others of condominiums. There are also many small buildings (as few as 4 stories) under construction in the vicinity of the University of Arkansas, and more similar projects are expected to occur due to the growth of the university.

Arkansas 916 Madden Springdale AR72762 - 3 Bed and 2 Baths with 2 Attached Garages on Gross Floor Area 1450 sqft - Price $297500 Built in 2022_result

Newly Built House in Arkansas 916 Madden Springdale AR72762 – 3 Bed and 2 Baths with 2 Attached Garages on Gross Floor Area 1450 sqft – Price $297500 Built in 2022_result

Building Costs Per Square Foot for Single Family Homes in the State of Arkansas, USA (NATIONAL ESTIMATOR)

Building costs in Arkansas are 7% below the national average, and closer to the Mississippi, South Dakota, Nebraska and New Mexico state average by a deviation of 1%.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Arkansas ranges from $320.75 per sqft to $491.69 per sqft, with the average being $378.53 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Arkansas ranges from $194.94 per sqft to $298.81 per sqft, with the average being $230.05 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Arkansas ranges from $126.02 per sqft to $191.40 per sqft, with the average being $147.54 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Arkansas ranges from $91.97 per sqft to $141.03 per sqft, with the average being $108.54 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Arkansas ranges from $74.65 per sqft to $114.32 per sqft, with the average being $88.03 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Arkansas ranges from $58.88 per sqft to $90.25 per sqft, with the average being $69.46 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 12 Metropolitan Areas/Cities in Arkansas – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 501 municipalities and 730 special districts grouped into 75 counties in the state of Arkansas. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

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The percentage deviation of building costs from the National Average for each metropolitan area in Arkansas is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Arkansas:

Arkansas Average -7% (-7% less than X)

  • Hot Springs 719 -13%
  • Harrison 726 -12%
  • Pine Bluff 716 -11%
  • Batesville 725 -9%
  • Jonesboro 724 -9%
  • Hope 718 -8%
  • Fort Smith 729 -7%
  • Fayetteville 727 -4%
  • Russellville 728 -4%
  • Little Rock 720-722 -3%
  • Camden 717 -2%
  • West Memphis 723 -2%

The Metropolitan Area List above as well as the Bar Graphs below shows that Hot Springs is the cheapest city to build a private home in the state of Arkansas. Camden and West Memphis are the most expensive cities to build a home. Building costs are -13% below the national average in Hot Springs and -2% below the national average in West Memphis and Camden.

Cheapest Places To Build in Arkansas:

Hot Springs is cheapest to place to build at -13% below the national average, followed by Harrison City at -12% below the national average. The third cheapest place to build a house is Pine Bluff at -11% below the national average, followed by Batesville and Jonesboro at -9% below the national average. The fourth cheapest place to build is Hope City at -8% below the national average, followed by Fort Smith at -7% below the national average.  The fifth cheapest place to build a home is Fayetteville and Russellville at -4% below the national average. Construction costs in Little Rock are –3% below the national average. Camden and West Memphis are -2% below the national average.

Expensive Places To Build in Arkansas:

If anything between 5% and 10% is considered expensive, then there is no such metropolitan area in Arkansas.

More Expensive Places To Build in Arkansas:

If anything between 10% and 15% is considered more expensive, then there is no such metropolitan area in Arkansas.

Very Expensive Places To Build in Arkansas:

The most expensive places to build a house in Arkansas are those 15% above the national average. There is no such metropolitan area in Arkansas.

Arkansas State Average Costs:

Private home building costs in the state of Arkansas are -7% below the national average. Building cost rates in the metropolitan area of Hope City are closer to the Arkansas state average by a deviation of 1%. Residential development costs in Fort Smith are equivalent to the state average. Arkansas is the 2nd cheapest state to build a home in the United States after Nebraska and New Mexico.


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