Thinking about moving to Northwest Arkansas (NWA) and wondering what it really costs to live here? You’re not alone. As one of the fastest-growing regions in the U.S., NWA attracts families, professionals, and retirees who are drawn to its balance of affordability and quality of life.
In 2025, the cost of living in Northwest Arkansas is roughly 11% below the national average, making it far more affordable than hotspots like Denver, Austin, or Dallas. But how much will you actually spend on housing, groceries, utilities, transportation, and taxes here? Let’s break it down.
🏡 Housing Costs in Northwest Arkansas
Home Prices
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Median home price in NWA: ~$399,000
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National median (June 2025): $435,000–$446,000
By city:
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Fayetteville: Around $399K (lots of students and strong community vibe).
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Bentonville: Mid-$400s (Walmart HQ premium). Bentonville’s housing costs trend above the NWA average — I explain more in my Pros and Cons of Living in Bentonville article.
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Rogers: $375K–$390K (balanced, suburban, near Beaver Lake).
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Housing here is still more affordable than the national average — but demand is high, so competition is fierce.
Renting
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3-bedroom rental: ~$1,650/month
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National average: ~$2,100/month
Rental demand is strong in Bentonville and Fayetteville, while Rogers offers a slightly more affordable “sweet spot.
đź›’ Groceries & Utilities
Grocery Costs
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Arkansas grocery prices are about 4–5% cheaper than the U.S. average.
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Grocery index: ~95 vs U.S. baseline of 100
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Example: A $200 grocery trip in Denver would be ~$190 in Fayetteville.
Utilities
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Utilities are roughly 8% below the national average.
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National average: $600/month → NWA average: ~$550
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Seasonal spikes happen in summer (A/C) but overall bills are manageable.
🏠Property Taxes & Homeownership Costs
Property Taxes
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Arkansas’s average effective property tax rate: 0.66%.
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Example: $312,000 home = ~$2,080/year in property taxes
Hidden Homeownership Costs
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Arkansas annual homeowner costs: ~$12,600
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National average: ~$21,400
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Includes insurance, utilities, and maintenance.
Arkansas consistently ranks among the lowest states for these expenses.
đźš— Transportation Costs
Daily Driving
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Gas and car insurance are ~6% cheaper than U.S. average.
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Shorter commutes → most places in NWA are 20–40 minutes apart.
Commute Experience
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Compared to Dallas or Houston, commuting in NWA feels easy.
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Expect occasional delays on I-49 or the odd tractor on a back road — but that’s part of the charm.
đź“Š Overall Cost-of-Living Index
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Northwest Arkansas index: 89
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U.S. baseline: 100
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That’s ~11% cheaper than the national average.
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Comparisons:
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Denver: 118
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Austin: 118
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Dallas: 103
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👉 Translation: Your dollar stretches further in NWA, especially if you’re relocating from a high-cost state.
Beyond cost, choosing the right city matters — check out Which NWA City Fits Your Lifestyle to find your perfect match.
📲 Relocation Tip
If you’re considering a move to Northwest Arkansas, remember: while day-to-day expenses are lower, the housing market is competitive in certain neighborhoods.
My advice:
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Get pre-approved early.
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Know your budget with local costs in mind.
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Request a custom cost-of-living breakdown to compare your current expenses with what life in NWA will look like.
I provide this breakdown for my relocation clients so they can make smart decisions before they move.
âť“ Frequently Asked Questions About Cost of Living in Northwest Arkansas
Is Northwest Arkansas affordable compared to other states?
Yes. With housing, groceries, utilities, and taxes all below national averages, NWA is one of the most affordable regions in the country.
What’s the biggest expense in Northwest Arkansas?
Housing is the largest expense — but even at ~$399,000 median, it’s still below the U.S. median home price.
Are property taxes high in Northwest Arkansas?
No. At ~0.66%, Arkansas property taxes are among the lowest in the country.
Is renting cheaper than buying in NWA?
It depends on your timeline. Renting a 3-bedroom averages $1,650/month. Buying long-term builds equity and often costs less per month when factoring in low taxes and insurance.
How does Northwest Arkansas compare to Austin or Denver?
NWA’s cost-of-living index is 89 vs 118 in Austin and Denver. That’s about 25–30% cheaper overall.
⚖️ Final Thoughts
Northwest Arkansas offers a rare combination: affordability + lifestyle quality. Housing is competitive but still cheaper than the national average, groceries and utilities cost less, property taxes are low, and commutes are short. Add in world-class amenities like Crystal Bridges, Razorback athletics, and endless outdoor trails, and it’s easy to see why people from across the U.S. are making the move.
