Little Rock 3Q23
Multifamily Market Report

$1,047

average rent

94.8%

average occupancy rate

527 UNITS

QUARTERLY DEMAND (YTD: 501)

3.0%

YoY rent change

-0.6 POINTS

yoy occupancy change

264 UNITS

QUARTERLY COMPLETIONS (YTD: 369)

Market Summary

The Little Rock apartment market saw measured growth recently. With 507 new units delivered through Q3 2023, the inventory expanded by a modest 0.9%. Occupancy dipped slightly by 0.6 percentage points year-over-year to 94.8%, ranking 12th among key South region markets. Class A units led with a 95.3% occupancy, followed by Class B at 94.8% and Class C at 94.3%. West Little Rock/Saline County boasted the highest occupancy, while Central Little Rock/Southeast Pulaski County lagged.

On the rent front, new lease rents increased by 3.0% year-over-year, falling above the market’s ten-year average growth of 2.6%. Class C units surprisingly led the way with a 4.0% annual rent change, followed by Class B at 3.3% and Class A at 2.2%. Notably, Central Little Rock/Southeast Pulaski County experienced the strongest annual rent growth among submarkets. Overall, the market’s performance suggests steady, albeit moderate, vitality.

Annual Demand vs Completions

2018
1,503
943
2019
1,017
495
2020
1,888
1,422
2021
1,724
993
2022
-703
689
2023 YTD
501
369
  • Planned
    Completions
  • Pre-Planned
    Demand

Occupancy & Rent Trends

RENT VS OWN
MONTHLY PAYMENT

$1,780

Average Monthly Mortgage Payment

$1,047

Average Monthly Rent

* The Average mortgage payment is based off a median home sales price of $212,500 as reported by the National Association of Realtors as of Aug 2023.

Submarket Rent & Occupancy

SubmarketAverage OccupancyAnnual Occupancy ChangeAverage Monthly RentAnnual Rent Change
Downtown Little Rock94.5%-0.3%$1,1552.4%
Central Little Rock/Southeast Pulaski County93.9%0.5%$8706.5%
West Little Rock/Saline County95.2%-0.7%$1,0990.7%
North Little Rock/Jacksonville/Conway94.9%-1.0%$1,0603.9%
Little Rock-North Little Rock-Conway, AR94.8%-0.6%$1,0473.0%

Units by Submarket Delivering in 2023

1,341

Units Under Construction

1,289

Units UC Delivering In the Next 4 Quarters

Number of Units Under Construction

Downtown Little Rock - 293
0%
Central Little Rock/Southeast Pulaski County - 144
0%
West Little Rock/Saline County - 266
0%
North Little Rock/Jacksonville/Conway - 638
0%

Number of Units Delivering Next 4Q

Downtown Little Rock - 293
0%
Central Little Rock/Southeast Pulaski County - 144
0%
West Little Rock/Saline County - 266
0%
North Little Rock/Jacksonville/Conway - 586
0%

Sales Activity

  1. Canyon View Capital
  2. Forge Partners
  3. Quarry Capital
  1. Maxus Realty Trust
  2. Covenant Capital Group
  3. Burkhalter Com’l Group

*Most Active Buyers and Sellers are based on the sale volume of apartment units.

TRANSACTION VOLUME


YTD Transaction Volume


Y-O-Y Change


Individual Transaction Count


Price Per Unit

* Trailing 4Q average PPU

* Preliminary Data from RCA – Individual transaction $2.5M +

Economy

8.1K

August Annual Jobs Created

2.2%

August 2023 Employment growth

3.0%

August 2023 Unemployment rate
3.8% us rate

Sources: RealPage; BLS; MSCI

Top 5 Employment Sector Annual Change

Leisure & Hospitality

Leisure & Hospitality

Change from August 2022 to August 2023:
4,100

Percent Change:
12.0%

Education & Health Services

Education & Health Services

Change from August 2022 to August 2023:
1,900

Percent Change:
3.1%

Mining, Logging, & Construction

Mining, Logging, & Construction

Change from August 2022 to August 2023:
1,500

Percent Change:
7.8%

Other Services

Other Services

Change from August 2022 to August 2023:
900

Percent Change:
4.8%

Government

Government

Change from August 2022 to August 2023:
300

Percent Change:
0.5%

Hover over icons to view data
SectorChange from Aug 2022 to Aug 2023 Percent Change
Leisure and hospitality4,10012.0%
Education and health services1,9003.1%
Mining, logging & Construction1,5007.8%
Other services9004.8%
Government3000.5%
Manufacturing00.0%
Professional and business services00.0%
Trade, transportation, and utilities-100-0.1%
Information-200-3.5%
Financial activities-300-1.2%

To Gain Further Insights Into The Little Rock Market Please Reach Out To Our local Team

Holden Chavis

Associate Advisor

Image of Alex

Alex Blagojevich

Executive Managing Director / Co-Founder

Image of Michael Sullivan

Michael Sullivan

Executive Managing Director / Co-Founder

Have a question? Ask me here!