During the third quarter, the Northwest Arkansas market reported an occupancy rate of 96.2%. At the outset of 2022, occupancy rates in the region soared to an almost full 99%. However, developers have since responded to the situation, introducing a consistent flow of units over the subsequent months. This strategic move has fostered a balanced equilibrium between the available housing supply and the prevailing demand. Despite these interventions, the Class C segment remains notably stretched, maintaining a soaring occupancy rate of 99.3%, unchanged from the previous quarter. Conversely, Classes A and B properties witnessed slight downturns in their occupancy, registering declines of 20 and 30 basis points respectively on a quarter-to-quarter basis.
The pressing demand for further apartment development in Northwest Arkansas is accentuated by the occupancy rates observed in its primary ZIP codes. Five of the major ZIP codes representing the NWA market have displayed occupancy rates surpassing 97.0%. Leading the chart, the outer western suburbs, covered by ZIP code 72761, recorded an occupancy rate of 99.1%. This heightened figure can be attributed to the limited apartment availability in this region. Similarly, the area of west Fayetteville, designated by ZIP code 72704, showcased a noteworthy occupancy rate of 98.7%. Conversely, Bentonville, having welcomed a significant wave of new apartments in recent quarters, posted the lowest occupancy rate at 95.1%. However, it’s worth noting that Bentonville witnessed the most substantial annual occupancy boost, clocking in at 30 basis points.