Homebuilding permits set for slight rise in Northwest Arkansas this year

Northwest Arkansas is on track to permit more new housing units than last year, but only by about 2%, according to Census Bureau data.

Why it matters: That's a problem for people facing steep housing prices . Experts estimate America is short more than 3 million units of housing, either to rent or buy.

The big picture: U.S. metros overall are on track to permit fewer new housing units than last year. Higher interest rates for loans are slowing new-home and apartment construction , according to the National Association of Home Builders.

• Labor and lot shortages are also weighing on builders, per the group's latest survey .

Zoom in: Just under 7,000 units are projected to be built this year in Benton and Washington counties.

• Last year, single-family homes made up 77% of the total permits, and projects with five units or more about 15%. Duplexes and quadplexes made up the balance.
• Meanwhile, prices are near all-time highs , squeezing lower-wage earners.

Yes, but: Homebuilding has proved resilient, partly because of a low inventory of existing houses for sale, Axios' Neil Irwin reports .

• 1.3 million total units were permitted in 2023 — single-family homes accounted for 60% of them, the data shows.

Between the lines: Some areas — particularly fast-growing Southern metros — are seeing more homebuilding than others.

What we're watching: A cascade of new apartments , financed when interest rates were lower, helped recently to slow rent growth .

With the peak of the construction wave behind us, per an analysis from real estate services firm Cushman & Wakefield, landlords could raise rents .