Walmart’s hometown becomes America’s next real estate hot spot

The city of Bentonville, Arkansas is quickly emerging as the next residential hotspot – with its population and real estate market both experiencing explosive growth in recent years.

Once known primarily as the home of Walmart, Bentonville has transformed into one of the most desirable spots in the US, attracting new residents, businesses and even the attention of high-profile executives.

The city’s population grew by 2.7% in 2023, an increase of 9.8% since 2020 – and experts predict that this trend will continue into the future, with Northwest Arkansas expected to be home to over 1 million residents by in 2050, according to the Arkansas Democrat-Gazette. .

Located in a rapidly growing region, Bentonville’s rise has been fueled by other corporations headquartered in the area.

“We’re the home of Walmart, and we’re the home of JB Hunt and also the home of Tyson, and Walmart has spent a ton of energy making this a very recruiting location,” Kaala House, Managing Partner at The Agency Bentonville. , told Fox Business.

“Our market is growing so intensely, especially after COVID, because a lot of people wanted to get out of the city to be outside. In recent years, we’ve even become the Mountain Biking Capital of the USA in Bella Vista, which is making us extremely recruitable for Walmart.”

The influx of new residents has put pressure on the Bentonville housing market, with 4,799 home sales recorded in Benton County and two nearby counties in just the first six months of 2024. This represents an 8.5% increase in sales compared to the same period last year. and 39.5% of the apartments sold were new constructions.

However, inventory is at an all-time low, with many homeowners reluctant to sell due to another pandemic-era phenomenon.

“There are a lot of people who are holding that two-point interest rate for COVID … they don’t want to sell because they have such a big rate,” House said. “Prices have gone up so much since then … we have a lot of new construction inventory now. If we were to close 29 new houses a day, we still wouldn’t have enough houses, because we increase the population by an average of 37 people a day.”

Despite the rapid growth, Bentonville is currently experiencing a slight shift toward a buyer’s market as factors such as rising interest rates and uncertainty surrounding the upcoming election affect the real estate landscape.

Still, experts say the city’s boom shows no signs of slowing, especially with Walmart’s plans to open a new Home Office campus next year, which is expected to bring even more people to the area.

“As Walmart continues to recruit and all these companies here continue to bring people to live in Northwest Arkansas, we’re just going to continue to grow and continue to see more businesses move into the area, including more restaurants,” said The Agency Bentonville agent Katlyn Munch. outlet.

Walmart’s recruiting efforts have been a key factor in Bentonville’s population growth.

The retail giant has asked many of its remote workers to relocate to Bentonville, though employees are also being given the option of moving to Hoboken, New Jersey or Southern California.

In addition to Walmart’s direct influence, many of the companies that do business with the retail giant also have a presence in the area, which has further contributed to Bentonville’s rapid expansion.

Surrounding areas are also booming, with many residents looking for more affordable housing options as they are priced out of Bentonville.

The median home price in Benton County reached $430,000 in the first half of 2024, representing a 72.5% increase over the past five years, according to the Skyline Report.

Bentonville’s transformation has not gone unnoticed by outsiders either. Blackstone COO Jon Gray recently sang the city’s praises in a viral LinkedIn video, calling it a “bucket list” destination.

“This is a place to add to the bucket list,” Gray said in the video while out for a jog in the area.

“They have great bike paths here, museums, incredible food. The Walton family has done an outstanding job. This is undoubtedly the home of Walmart, an incredible company that serves customers all over the world, providing value and creating so many jobs. And this is just a fun place. I will definitely come back here.”