Are you looking to own, rent, or invest in the real estate Rogers, AR, market?
As a thriving market with untapped potential, there's a lot of gain for anyone hoping to snatch up something good in Benton County. Being a growing city with about 72,999 residents, the housing market has yet to establish itself with abundant supply.
Whether you intend to invest or own a property in Rogers, understanding the current trend in the real estate scene in this city is essential to benefit from the market.
Let's walk you through all the data surrounding the residential and commercial spaces, the current pricing patterns, and possible future predictions.
Residential Real Estate Trends in Rogers
Residing in Rogers has its perks, from affordable living costs to the bustling economy with job opportunities, beautiful natural scenery, and a diverse cultural scene.
Before you own that housing space, let's examine the city's residential real estate market trends.
1. Home Prices and Affordability
The housing market in Rogers is currently on a "seller's market" trend, meaning there are fewer houses to meet the demand of a large supply of buyers. This pattern causes competition within the market, forcing prices to push higher.
There are signs of competitiveness in the market; the current average value of homes sold as of February 2024 is $387,700, with a median listing price of $450,000.
Meanwhile, the median cost of renting an apartment (879 sq. ft.) within the city is $1,135, compared to the state and national average of $1,036 and $1,702, respectively.
The cost of living in Rogers is roughly 9% lower than the national average, with the housing market being 28% more affordable than other regular U.S. cities.
Any of the moving companies Rogers, AR, offers would tell you that the average resident can own a place on their basic income with proper planning. On a median household income of $69,582, many residents can comfortably rent or own houses.
2. Inventory Levels and Market Activity
Low supply and high demand for housing have plagued the Rogers real estate market for a while. There are about 540 active home listings, with 42 new houses filling the deficit.
Sales of homes were up 18.6% between last year and February 2024. Homes in this part of Arkansas typically sell for 1.17% below the asking price after spending a median of 81 days on the market.
Hot homes with higher competition in the urban and suburban neighborhoods barely make it past the average of 19 days on the market.
3. Housing Development Projects
New construction projects have kicked off around the different neighborhoods to combat the low inventory of residential real estate in Rogers, AR.
Areas like Pinnacle Hills are constructing more single-family homes, while the likes of Shadow Valley have focused on custom homes and luxury estates.
Historic buildings are getting repurposed into mixed-use developments, and more energy-efficient homes with modern amenities are becoming the norm.
4. Shifts in Housing Preferences
A larger portion of 56.7% of residents in Rogers own their homes, while about 43.3% are renters.
These people shape the market and determine the change in house preference across the city. Being a family-friendly environment, the most sought-after housing type within Rogers is the single-family homes, with apartment complexes coming in at the second spot.
Three-bedroom family homes come out on top for now and are the most preferred option. However, these are subject to change; as the real estate market thrives and new folks swarm into the city, you can expect another shift in the housing trend.
Commercial Real Estate Trends in Rogers
Being an investor or starting a business in a new city can have certain challenges; for one, finding the perfect space. In Rogers, while the residential real estate market has yet to keep up with the growing population and housing demands, commercial spaces might face similar issues.
Certain trends and patterns have become noticeable in the Rogers, AR, commercial real estate market that may affect the pricing or shift the types of preferred spaces.
1. Office Space Dynamics
The most common type of office space leading the market in Rogers right now is the mixed-use units. Choosing office spaces over remote work is still a prevailing aspect in Rogers City.
Businesses still opt for leasing agreements to use these space types. Office space prices have increased over the years in Rogers and might continue to soar gradually.
The average leasing amount for rentals of office spaces is about $36.84 per square foot. Plus, the average price to buy an office space ranges from $125 to $1,256 per sq. ft., depending on the location.
2. Retail Market Resilience
An ongoing trend is the shift towards e-commerce. While traditional retailers still have footprints in the market, many are downsizing to expand their online presence.
Mixed-use buildings and specialty retail are becoming more rampant to meet the growing population and diverse needs. The goal is to enhance customers' shopping experience through renovations and including amenities like events and parking spaces.
Retail real estate developers have begun capitalizing on the rising care for health by incorporating health-oriented designs during construction.
3. Industrial and Logistics Expansion
With changing demographics, the need for warehouses and new facilities has fostered the start of an expansion in Rogers' commercial real estate market.
More infrastructure supporting transportation and logistics has started. Improvements to roads, rail connections, and bridges to enhance industrial operations and connectivity are underway.
4. Commercial Development Projects
Coupled with the trend of mixed-use units leading the charge in Rogers, AR, and the commercial real estate market, several notable commercial development projects are happening within the city to contribute to economic growth.
For instance, Pinnacle Hills Promenade is a shopping destination featuring mixed-use designs catering to entertainment, dining, and retail. Other developments included the Rogers Technology Park, which offers modern spaces and research facilities.
Almost all newly constructed office or retail spaces have a multi-use design in mind, spaces that can house several businesses in one building.
Investment Opportunities and Market Outlook
As a thriving city with an opportunity for robust economic growth and diverse demographics, the market in Rogers is ripe for investors to capitalize on the city's real estate.
Investing in Rogers' real estate right now is essentially a good idea. There's high demand for residential units, and you can bank on owning rental properties to provide a consistent flow of income.
Likewise, the commercial market can invest in office or retail spaces in strategic areas like Downtown Rogers or any major business district.
Mixed-use buildings offering both residential and commercial spaces have gained traction in the city. You can use such a trend to diversify revenue streams when placing properties up for rentals.
Summary
Becoming a part of the real estate Rogers, AR, market is good for anyone looking to invest. Although it might seem not the best for anyone just looking to snatch up a home in the city, housing is still relatively cheap compared to the U.S. average.
The competition in Rogers' real estate market won't be coming to a halt quite yet. While construction might be ongoing, residents' demands are still quite high, which will affect the market.
A tip for investors or home searchers would be to remain informed about the market before buying or selling. To avoid losses, preferably seek the guidance of professionals before getting into the market.
