Hot Spring County, Arkansas Housing Market

📝 Local Market Notes

Hot Spring County presents a distinctively affordable market, classified as buyer-favorable due to a price-to-income ratio of 2.73, which sits well below the national average of 3.20. The median home value of $151,100 is 33.6% below the national mean, while the rent burden stands at 16.6%, slightly under the national 17.2% benchmark. These metrics indicate that both purchasing and renting remain financially accessible relative to the median household income of $55,405. The price-to-rent ratio of 16.4 further supports the viability of homeownership over long-term renting, suggesting that capital accumulation through equity is more efficient than perpetual rental payments in this jurisdiction. The market exhibits a pronounced upward trajectory in home values, with an 18.1% year-over-year increase in 2024 following a 16.9% surge in 2022. This acceleration contrasts sharply with the recent FHFA HPI data, which shows a modest 1.17% county-level increase, slightly outpacing the state’s 1.09% growth by 0.08 percentage points. The divergence between the Census-derived annual spikes and the smoother FHFA index suggests that the recent Census data may reflect broader valuation shifts or specific transaction clusters rather than a uniform quarterly rise. Despite this volatility, the overall trend signals strengthening demand. Notably, home values are rising faster than rents, a pattern that typically favors equity growth for owners but may signal tightening rental affordability for tenants over time. Regional context reveals that while the county’s home values are 6.8% above the Arkansas state average, its income level is 18.5% below the national norm. This gap is partially mitigated by strong net migration, with 628 more filers moving into the county than leaving between 2021 and 2022. However, housing supply remains extremely constrained, with only seven new single-family units authorized in 2025 and zero multi-family permits. With total employment at 5,746 jobs and an average weekly wage of $992, the local economy supports a niche, low-volume market. Potential buyers should note that the high mortgage rate of 7.40% increases monthly carrying costs, yet the low entry price point keeps total housing costs manageable. Renter’s face a stable market with a median gross rent of $768, but the lack of new multi-family construction limits future rental inventory. The combination of low supply, positive migration, and rising valuations creates a competitive environment for the limited available housing stock.

Based on U.S. Census ACS 2024 5-Year Estimates.