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Springdale School District opened a second high school, Har-Ber High School, last year and drew new attendance boundary lines. It is a top-notch facility and one which the students, faculty and taxpayers can be justly proud. Another new high school is in the works for the east side of town.
Bentonville has already built a new high school to replace its older school and is studying future needs to keep up with growth in the district. It, too, is a first-class school.
Rogers has a new high school and is already planning another.
Prairie Grove just completed its inaugural year in a new high school after turning the older one into a middle school.
In Lincoln, city council and school district officials are studying the possibility of building a combined facility. As far as I know, that idea is new to NW Arkansas and might make a lot of sense in a small city such as Lincoln. For instance, they could reduce construction costs and save money sharing meeting rooms, maintenance and janitorial staff, etc. It’s a concept that certainly deserves study.
Farmington School District will ask voters in September to approve a 3.55 millage increase to build a new elementary school and purchase land for a new high school to be built in the future. If the measure passes, Farmington School District’s millage rate will rise to 43.85 mills - one of the highest tax rates in NW Arkansas. (Fayetteville’s millage rate is currently 43.80.)
For some months now, the Fayetteville School Board has been discussing how to keep up with growth.
Fayetteville High School had approximately 2000 students in 2005-06. Room exists to squeeze in an additional 400-500 students – but that would be far from ideal. Some programs are already squeezed past limits and the cafeteria is much too small.
The board has to decide whether to build a new high school to replace the old one, or do as Springdale did, and build a second one and continue using the existing high school. There is much to consider. Certainly cost and location are near the top of the list but education of the students must be the highest priority.
If the decision is two high schools, emotions enter the picture. Who will get to go to the new school and who must remain at the old facility? Will the quality of the education be equal? Will the value of real estate increase near a new school while values decrease around the closed high school?
In 2005 the district purchased 79 acres of land in northwest Fayetteville and is considering buying an adjacent 22 acres. Apparently, the rule of thumb these days calls for 100 acres to build a first-class high school and associated facilities.
There have been comments about the distance from downtown Fayetteville and more southern parts of the city, but even if 100 acres could be found close in, the cost would be prohibitive.
New schools are expensive. Some estimates put the cost of a new high school at $50 million. I don’t see how a new school can be built without a millage increase but Fayetteville voters have a recent history of defeating bond elections.
Fayetteville school officials are interested in hearing from citizens. Input is needed. It will probably be five years before construction begins. That sounds like a long time but formulating plans and raising money takes time.
I recommend staying informed and getting involved in the process. Go to meetings and help formulate intelligent decisions. The future of Fayetteville is at stake.
For more information:
http://www.uaex.edu/Other_Areas/publications/PDF/FSCDC-16.pdf#search='arkansasmillagerates
http://www.nwanews.com/nwat/News/42163/
http://www.nwanews.com/nwat/News/41407/
http://www.nwanews.com/nwat/News/40911/
http://www.nwaonline.net/articles/2006/07/11/news/09bzboardsession.txt
http://www.nwaonline.net/articles/2006/07/11/news/06fzlincoln.txt
Monday, July 24, 2006
Friday, July 21, 2006
Baseball for Springdale
Sometimes life throws us a curve ball and by so doing, makes everyone sit up and pay attention.
The City of Springdale’s election on July 11, 2006, had three questions on the ballot and the results made a lot of people pay attention. Voters approved all three, thereby paying off one bond program, starting a new bond program, and building a baseball stadium.
The first two questions regarded funding for street improvements. Not surprisingly, voters gave permission to extend the 1% sales tax to pay for much-needed improvements. Springdale, in general, has been doing a phenomenal job in this regard – much better than some of the other communities in NW Arkansas. Springdale planners seem to understand the need to improve infrastructure. Drivers will be much happier when three east-west connector roads are built, carrying traffic across the north, central, and southern parts of the city to alleviate the congestion on Highway 412.
The surprising thing, I think, was approval of a $50 million bond for land acquisition and construction of a 6,000-seat stadium for a minor league baseball team. Plans call for the stadium to be built in the southwestern part of the city, west of I-540 and south of 412.
If you have ever said something to the effect, “I have only one vote, why bother going to the polls,” you might want to reconsider that in the future. The stadium vote passed by 15 votes: 2408 for; 2393 against. In other words, more than 20,000 registered voters cast less than 6,000 votes!
As a former teacher of American Government classes at Northwest Arkansas Community College, I applaud those who got out to express their opinion on the issue. At the same time, I can’t help scolding those who didn’t bother to vote.
$50 million for a baseball stadium is a lot of money by anyone’s standards. The close vote showed that opinion is extremely divided. Those in favor of the stadium have gained the day, but it's a risky proposition for the city of Springdale. The city may or may not ever directly recoup that outlay. However, the indirect benefits could be immeasurable.
When I first moved to NW Arkansas and former friends asked me about the area, I described it as "suburbia without a central city." Each of the communities, as they formerly existed before the extreme urbanization now taking place, had a particular personality. Fayetteville was the college town and cultural center. Rogers had Beaver Lake (and now the new mall), and Bentonville had the Wal-Mart Headquarters.
Although Springdale had the Tyson Foods headquarters, its identity had largely fallen between the cracks. People frequently described it to me as the "working class" town just north of Fayetteville. As such, it never really had a special identity, except its association with the poultry industry (for example, the "Featherfest" celebration each year) or the site of the Rodeo each July.
It is quite possible that the baseball stadium could help create a special identity for Springdale in the "new" scheme of things in NW Arkansas. Sports, at all levels, are very important – recreationally and economically.
In one sense, the U of A Razorbacks have become such a phenomenon in the area (for all sports) because there were no other sports alternatives. The University fields good teams even by national standards, and there have been some great seasons. For example, back in the mid-90s the basketball team got to the "Final Four" and even competed for the NCAA championship, and the track team is well respected nationwide because of its coach, John McDonnell.
College sports are, in some ways, very exciting because the players are not professionals. School spirit enhances the excitement of the game. Witness, for example, the US Olympic hockey team which beat the Russians about 20 years ago for the first time in years – that team was comprised largely of hockey players from the University of Minnesota. Those guys got a hero's welcome (even a ticker tape parade in the middle of winter) when they returned to Minnesota, and with good reason.
The devotion of the fans (and alumni) here is incredible. It goes beyond school spirit. There are tail-gate parties and other activities, just like for major professional teams in cities across the country. The RV park in south Fayetteville looks like “Razorbackville” on any night before a big game with neon Razorback signs, etc. Cars with Razorback flags fill the streets.
Plano, Texas, a suburb of Dallas, became known for their great sports programs, and although Springdale is hardly Plano, there is something to be said for good sports teams. I have had people relocating to the area who want to live in Springdale because the Springdale High School sports teams have a great reputation, and they want their talented sports-minded children to have good coaching and opportunities.
But professional sports teams frequently have a tougher time of it. It has been widely rumored that The Wichita Wranglers, an affiliate of the Kansas City Royals, is the targeted team. No contracts have been signed and at this point, it appears the City of Wichita is anxious to keep the Wranglers from leaving. The team’s record is far from stellar, attendance at games has been dropping, the stadium is very old and in need of improvements, but the city fathers don’t want to lose their baseball team.
For a small town like Springdale, gaining a minor league team could be just what a town without an identity needs. As NW Arkansas grows into a major metropolitan area, Springdale could capitalize on its image as the "sports" town and provide alternatives to the Razorbacks. Perhaps a move would also provide the impetus for the Wranglers to improve their performance. Much will depend on attendance at the games.
Just as they have done with roads, the city planners in Springdale are again looking ahead far beyond the present and are to be applauded for their efforts and vision for the future.
For more information:
http://www.nwaonline.net/articles/2006/07/09/news/03azroadbond.txt
http://www.nwaonline.net/articles/2006/07/09/sports/08azfaq.txt
http://www.nwaonline.net/articles/2006/07/09/sports/01azballpark.txt
http://www.nwanews.com/nwat/Editorial/42730/
http://www.nwanews.com/adg/Sports/160355/
http://www.nwanews.com/adg/News/160984/
The City of Springdale’s election on July 11, 2006, had three questions on the ballot and the results made a lot of people pay attention. Voters approved all three, thereby paying off one bond program, starting a new bond program, and building a baseball stadium.
The first two questions regarded funding for street improvements. Not surprisingly, voters gave permission to extend the 1% sales tax to pay for much-needed improvements. Springdale, in general, has been doing a phenomenal job in this regard – much better than some of the other communities in NW Arkansas. Springdale planners seem to understand the need to improve infrastructure. Drivers will be much happier when three east-west connector roads are built, carrying traffic across the north, central, and southern parts of the city to alleviate the congestion on Highway 412.
The surprising thing, I think, was approval of a $50 million bond for land acquisition and construction of a 6,000-seat stadium for a minor league baseball team. Plans call for the stadium to be built in the southwestern part of the city, west of I-540 and south of 412.
If you have ever said something to the effect, “I have only one vote, why bother going to the polls,” you might want to reconsider that in the future. The stadium vote passed by 15 votes: 2408 for; 2393 against. In other words, more than 20,000 registered voters cast less than 6,000 votes!
As a former teacher of American Government classes at Northwest Arkansas Community College, I applaud those who got out to express their opinion on the issue. At the same time, I can’t help scolding those who didn’t bother to vote.
$50 million for a baseball stadium is a lot of money by anyone’s standards. The close vote showed that opinion is extremely divided. Those in favor of the stadium have gained the day, but it's a risky proposition for the city of Springdale. The city may or may not ever directly recoup that outlay. However, the indirect benefits could be immeasurable.
When I first moved to NW Arkansas and former friends asked me about the area, I described it as "suburbia without a central city." Each of the communities, as they formerly existed before the extreme urbanization now taking place, had a particular personality. Fayetteville was the college town and cultural center. Rogers had Beaver Lake (and now the new mall), and Bentonville had the Wal-Mart Headquarters.
Although Springdale had the Tyson Foods headquarters, its identity had largely fallen between the cracks. People frequently described it to me as the "working class" town just north of Fayetteville. As such, it never really had a special identity, except its association with the poultry industry (for example, the "Featherfest" celebration each year) or the site of the Rodeo each July.
It is quite possible that the baseball stadium could help create a special identity for Springdale in the "new" scheme of things in NW Arkansas. Sports, at all levels, are very important – recreationally and economically.
In one sense, the U of A Razorbacks have become such a phenomenon in the area (for all sports) because there were no other sports alternatives. The University fields good teams even by national standards, and there have been some great seasons. For example, back in the mid-90s the basketball team got to the "Final Four" and even competed for the NCAA championship, and the track team is well respected nationwide because of its coach, John McDonnell.
College sports are, in some ways, very exciting because the players are not professionals. School spirit enhances the excitement of the game. Witness, for example, the US Olympic hockey team which beat the Russians about 20 years ago for the first time in years – that team was comprised largely of hockey players from the University of Minnesota. Those guys got a hero's welcome (even a ticker tape parade in the middle of winter) when they returned to Minnesota, and with good reason.
The devotion of the fans (and alumni) here is incredible. It goes beyond school spirit. There are tail-gate parties and other activities, just like for major professional teams in cities across the country. The RV park in south Fayetteville looks like “Razorbackville” on any night before a big game with neon Razorback signs, etc. Cars with Razorback flags fill the streets.
Plano, Texas, a suburb of Dallas, became known for their great sports programs, and although Springdale is hardly Plano, there is something to be said for good sports teams. I have had people relocating to the area who want to live in Springdale because the Springdale High School sports teams have a great reputation, and they want their talented sports-minded children to have good coaching and opportunities.
But professional sports teams frequently have a tougher time of it. It has been widely rumored that The Wichita Wranglers, an affiliate of the Kansas City Royals, is the targeted team. No contracts have been signed and at this point, it appears the City of Wichita is anxious to keep the Wranglers from leaving. The team’s record is far from stellar, attendance at games has been dropping, the stadium is very old and in need of improvements, but the city fathers don’t want to lose their baseball team.
For a small town like Springdale, gaining a minor league team could be just what a town without an identity needs. As NW Arkansas grows into a major metropolitan area, Springdale could capitalize on its image as the "sports" town and provide alternatives to the Razorbacks. Perhaps a move would also provide the impetus for the Wranglers to improve their performance. Much will depend on attendance at the games.
Just as they have done with roads, the city planners in Springdale are again looking ahead far beyond the present and are to be applauded for their efforts and vision for the future.
For more information:
http://www.nwaonline.net/articles/2006/07/09/news/03azroadbond.txt
http://www.nwaonline.net/articles/2006/07/09/sports/08azfaq.txt
http://www.nwaonline.net/articles/2006/07/09/sports/01azballpark.txt
http://www.nwanews.com/nwat/Editorial/42730/
http://www.nwanews.com/adg/Sports/160355/
http://www.nwanews.com/adg/News/160984/
Wednesday, July 19, 2006
Sidewalk Cafes in Fayetteville
There is a proposal before the Fayetteville city council to allow sidewalk cafes on public sidewalks. What a wonderful idea! This would definitely add to the idea of making central Fayetteville a vibrant place where people could walk to work, leisure, and social activities.
Picture, if you will, some colorful umbrellas shading tables and chairs along the sidewalk where people are enjoying coffee or food. Some people are talking with friends while others are reading or taking a break from shopping. Doesn’t that image make you feel relaxed and comfortable?
One concern about sidewalk cafes is whether there is enough room on Dickson Street’s existing sidewalks. Closing several blocks in the area east of West Avenue to vehicular traffic and converting that section into a “walking street” could easily resolve this concern. Business for the shops and restaurants would actually be enhanced because people would be on foot, rather than just driving by in their cars. Pedestrians could walk safely in the street while the sidewalks were used as cafes.
In Latin America, it is quite common for a "shopping street" to be a "walking street." Examples can be found in Santiago, Chile, and Tegucigalpa, Honduras, among other major Latin American cities. These streets are always full of people, and businesses compete to get frontage on these streets because of the advantages of having pedestrians rather than vehicles pass by.
A similar concept occurred years ago in Minneapolis when the primary shopping street was closed to all vehicular traffic, except busses.
I say, “Let’s go for it!”
http://www.nwarktimes.com/nwat/News/42504/
Picture, if you will, some colorful umbrellas shading tables and chairs along the sidewalk where people are enjoying coffee or food. Some people are talking with friends while others are reading or taking a break from shopping. Doesn’t that image make you feel relaxed and comfortable?
One concern about sidewalk cafes is whether there is enough room on Dickson Street’s existing sidewalks. Closing several blocks in the area east of West Avenue to vehicular traffic and converting that section into a “walking street” could easily resolve this concern. Business for the shops and restaurants would actually be enhanced because people would be on foot, rather than just driving by in their cars. Pedestrians could walk safely in the street while the sidewalks were used as cafes.
In Latin America, it is quite common for a "shopping street" to be a "walking street." Examples can be found in Santiago, Chile, and Tegucigalpa, Honduras, among other major Latin American cities. These streets are always full of people, and businesses compete to get frontage on these streets because of the advantages of having pedestrians rather than vehicles pass by.
A similar concept occurred years ago in Minneapolis when the primary shopping street was closed to all vehicular traffic, except busses.
I say, “Let’s go for it!”
http://www.nwarktimes.com/nwat/News/42504/
Sunday, July 09, 2006
Bus Ridership is Increasing in NW Arkansas
I was pleased to read in the Northwest Arkansas Times newspaper that more people are using public transportation to get where they want to go. Of course, that isn’t a big surprise given the high cost of gasoline these days. As I write, gas in our area is averaging about $2.90 a gallon. Add that to all the other costs of driving a vehicle and it’s easy to understand why bus ridership is increasing.
But gas prices aren’t the only reason ridership is up. Ozark Regional Transit deserves a pat on the back for expanding service. Ozark currently has seven fixed routes serving 110 square miles. As they are able to obtain more funding, Ozark plans to increase the areas they serve.
I sincerely hope this trend will continue. Commuters face gridlock twice a day just trying to get back and forth to their work places. Even in the non-commuting hours of the day it’s not unusual to face traffic delays as people go about their shopping, appointments, and general business of the day. No one enjoys gridlock. It creates more stress on both people and the environment.
I have stressed for several years the need for a good public transportation system in NW Arkansas. Yes, I know it’s not nearly as bad here as New York or Los Angeles or many other large cities, but we need to make sure it doesn’t get that bad. Reliable bus service with a good route system and frequent trips will be a big plus for this area.
If people can rely on the bus to get them where they want to go in a reasonable amount of time, bus ridership will undoubtedly increase.
For more information:
Ozark Regional Transportation, http://www.ozark.org
http://www.nwanews.com/nwat/News/42137/
But gas prices aren’t the only reason ridership is up. Ozark Regional Transit deserves a pat on the back for expanding service. Ozark currently has seven fixed routes serving 110 square miles. As they are able to obtain more funding, Ozark plans to increase the areas they serve.
I sincerely hope this trend will continue. Commuters face gridlock twice a day just trying to get back and forth to their work places. Even in the non-commuting hours of the day it’s not unusual to face traffic delays as people go about their shopping, appointments, and general business of the day. No one enjoys gridlock. It creates more stress on both people and the environment.
I have stressed for several years the need for a good public transportation system in NW Arkansas. Yes, I know it’s not nearly as bad here as New York or Los Angeles or many other large cities, but we need to make sure it doesn’t get that bad. Reliable bus service with a good route system and frequent trips will be a big plus for this area.
If people can rely on the bus to get them where they want to go in a reasonable amount of time, bus ridership will undoubtedly increase.
For more information:
Ozark Regional Transportation, http://www.ozark.org
http://www.nwanews.com/nwat/News/42137/
Condo Mania in NW Arkansas--How Many is Too Many?
The debate has now been settled over whether the Divinity Hotel and Condos project can become reality. The newly-approved Divinity development has roused much controversy because of its size and scale in comparison to existing buildings in central Fayetteville. Its plans call for 30 condos and 137 hotel rooms above commercial space and restaurants.
A few years ago there wasn't a condo for sale in Fayetteville but that changed rapidly as developers began turning everything available into condos in central Fayetteville.
With the new mixed-use zoning plan expected to be approved soon, city planners anticipate turning Fayetteville into a "real city" with shops and commercial entities on the first floors of some of the new construction buildings, with condos upstairs.
There is already one large building under construction behind Dickson Street, and many older buildings have been already turned into condos, including the UArk Bowl, St. Joseph's Catholic Church and School, and others in the Dickson Street area.
Thanks in part to tax incremental financing (TIF), the abandoned Mountain Inn has been demolished and a new building has been approved for the site, conforming to the city's new guidelines. It will be known as the Renaissance building and its 18 stories will house a Marriott Hotel and condos.
The 9-story Lofts at Underwood Plaza is another new condo project located right on the square in Fayetteville. And the Legacy building is already underway, bringing 37 new condos to the Dickson Street area.
In addition, an apartment complex behind the NW Arkansas Mall (formerly Bristol Gardens, now called the Reserve at Steele Crossing) has gone through a condo-conversion and sales are underway. And there are new condos on Zion Road east of the mall for sale.
The problem is that land prices, especially in town, have risen so high that these condos are undoubtedly for an affluent group of people. The latest project to come before city planners calls for 20 condos, retail space and parking on a piece of land that is less than 1 acre in size. The land and existing building, which will be demolished, sold this year for $980,000.
Condos currently on the market in central Fayetteville are listed at close to $200 per square foot—certainly not for the average working person. Granted, many retirees who might be downsizing may have the money to pay these prices, as may some young, well-paid professionals who want to be within walking distance of restaurants and nightlife on Dickson Street.
I'm not arguing with the concept proposed by the planning commission--a vibrant center city where commercial entities are within walking distance. It's just that it seems that no one has asked the question, "will there be too many condos as a result"? Can Fayetteville's population absorb this large number of expensive multi-family units downtown?
A similar pattern is occurring in Benton County. Many condo complexes are being constructed in Rogers, and a development calling for three 15-story condos has been proposed for the shores of Beaver Lake. Much opposition has occurred for this project, leading to a question about what kind of development should occur near the lake.
A lesson could be learned from the folks in the Lake Tahoe area back in the 70s and 80s as lakefront condos proliferated. The pristine natural beauty was destroyed in some places due to lakefront condo complexes.
If you are concerned about condos, building heights, lakefront development or any other aspect of life in NW Arkansas, I urge you to make your voice heard. Stay informed, go to meetings, and take a stand. Your opinion counts.
For more information:
http://www.nwarktimes.com/nwat/News/42328/
http://www.nwarktimes.com/nwat/News/41377/
http://www.nwanews.com/adg/Business_Matters/153398/
http://www.nwanews.com/nwat/News/42544/
http://www.nwarktimes.com/nwat/News/42366/
http://www.nwaonline.net/articles/2006/07/01/news/01bzcondosuit.txt
http://www.gill-law.com/assets/pdfs/Article_TIF%20Financing%2007%2008%2004.pdf#search='mountaininnfayetteville'
A few years ago there wasn't a condo for sale in Fayetteville but that changed rapidly as developers began turning everything available into condos in central Fayetteville.
With the new mixed-use zoning plan expected to be approved soon, city planners anticipate turning Fayetteville into a "real city" with shops and commercial entities on the first floors of some of the new construction buildings, with condos upstairs.
There is already one large building under construction behind Dickson Street, and many older buildings have been already turned into condos, including the UArk Bowl, St. Joseph's Catholic Church and School, and others in the Dickson Street area.
Thanks in part to tax incremental financing (TIF), the abandoned Mountain Inn has been demolished and a new building has been approved for the site, conforming to the city's new guidelines. It will be known as the Renaissance building and its 18 stories will house a Marriott Hotel and condos.
The 9-story Lofts at Underwood Plaza is another new condo project located right on the square in Fayetteville. And the Legacy building is already underway, bringing 37 new condos to the Dickson Street area.
In addition, an apartment complex behind the NW Arkansas Mall (formerly Bristol Gardens, now called the Reserve at Steele Crossing) has gone through a condo-conversion and sales are underway. And there are new condos on Zion Road east of the mall for sale.
The problem is that land prices, especially in town, have risen so high that these condos are undoubtedly for an affluent group of people. The latest project to come before city planners calls for 20 condos, retail space and parking on a piece of land that is less than 1 acre in size. The land and existing building, which will be demolished, sold this year for $980,000.
Condos currently on the market in central Fayetteville are listed at close to $200 per square foot—certainly not for the average working person. Granted, many retirees who might be downsizing may have the money to pay these prices, as may some young, well-paid professionals who want to be within walking distance of restaurants and nightlife on Dickson Street.
I'm not arguing with the concept proposed by the planning commission--a vibrant center city where commercial entities are within walking distance. It's just that it seems that no one has asked the question, "will there be too many condos as a result"? Can Fayetteville's population absorb this large number of expensive multi-family units downtown?
A similar pattern is occurring in Benton County. Many condo complexes are being constructed in Rogers, and a development calling for three 15-story condos has been proposed for the shores of Beaver Lake. Much opposition has occurred for this project, leading to a question about what kind of development should occur near the lake.
A lesson could be learned from the folks in the Lake Tahoe area back in the 70s and 80s as lakefront condos proliferated. The pristine natural beauty was destroyed in some places due to lakefront condo complexes.
If you are concerned about condos, building heights, lakefront development or any other aspect of life in NW Arkansas, I urge you to make your voice heard. Stay informed, go to meetings, and take a stand. Your opinion counts.
For more information:
http://www.nwarktimes.com/nwat/News/42328/
http://www.nwarktimes.com/nwat/News/41377/
http://www.nwanews.com/adg/Business_Matters/153398/
http://www.nwanews.com/nwat/News/42544/
http://www.nwarktimes.com/nwat/News/42366/
http://www.nwaonline.net/articles/2006/07/01/news/01bzcondosuit.txt
http://www.gill-law.com/assets/pdfs/Article_TIF%20Financing%2007%2008%2004.pdf#search='mountaininnfayetteville'
Tuesday, July 04, 2006
Licensed Realtor® vs. For-Sale-By-Owner – Which Would You Rather Do?
A few Arkansas Realtors® have recently begun an effort to introduce legislation that would prohibit property owners from selling a home without contracting with a Realtor®.
I don't necessarily agree with the proposed law. Americans have traditionally been free to make their own decisions, right or wrong, and certainly property ownership is no exception. In fact, property rights were some of the basic rights the founding fathers of our nation valued. An early version of the “Declaration of Independence” stated the rights of the colonists to “life, liberty, and property” instead of the final version of “life, liberty and the pursuit of happiness.”
On the other hand, there are many reasons to use the services of a Realtor®, some of which are so plain to see that I can’t understand why a buyer or seller would even consider trying to go it alone:
1. A person becomes a licensed Realtor® only after studying all the applicable laws, being tested on that knowledge, and continuing his/her education annually. Most Realtors® also seek advanced education resulting in designations such as Accredited Buyer Representative (ABR®), Certified Residential Specialist (CRS) and others. These designations require experience (a minimum number of transactions) as well as many courses to improve their knowledge to better serve their clients.
2. An experienced Realtor® knows the market inside and out and provides valuable advice to both buyers and sellers.
3. Most real estate agents primarily function as problem solvers. They provide a valuable buffer between buyer and seller to negotiate terms and solve problems without acrimony and to achieve a "win-win" situation for both sides. A lot of things can go wrong in a real estate transaction--from problems discovered during the home inspection, to problems with financing, to simple things like seeing that keys are delivered to the new owner. I don’t have enough space here to tell you about all the “fires” I’ve had to put out at the last minute to prevent a sale from collapsing.
4. Realtors® must comply with Fair Housing laws but owners selling their own property are exempt from the same laws.
5. Studies from the National Association of Realtors® have shown that for-sale-by-owners often receive less in net proceeds from the sale of their home than they would have if they had used a Realtor®--even after paying the commission. According to the National Association of Realtors®, in 2005 the median price of FSBO homes was $198,200 while the median price of agent-assisted home sales was $230,000.
6. Having a Realtor® saves a lot of time and trouble for a seller. The real estate professional will market the home, make valuable suggestions on presentation to help the home sell faster, assist with the complicated paperwork, and provide current data on home sales in order to price the home appropriately. Plus, because there will be a lock box on the home, the seller doesn’t have to go rushing home during his lunch hour to show it.
I don't argue with the right of a seller to sell his home himself. But as a buyer, I wouldn't even look at that home without the help of a buyer agent. How could I be sure that the person selling the home knows what he is doing? I would want to be assured of a clear title to the property. Would I know how to negotiate any necessary repairs? What if the seller would not cooperate in having the property inspected or properly repaired? What if the inspection discovers something so drastically wrong with the property that I ultimately don't want to buy it? Will the seller give my earnest money back or will I have to seek legal assistance?
For Sale By Owner (FSBO) sellers often think just getting their home on the Internet, putting a sign in the yard and ads in the paper, as well as having an open house, are all it takes to sell it. That is far from reality because:
1. Most buyers now have buyer representatives. This is especially important in NW Arkansas where many people are being transferred in (or out) because of employment. Most people relocating here do not pick up the newspaper to look for FSBOs or even look at FSBO websites. They get a buyer’s agent who knows the market and neighborhoods which will meet their family’s needs.
2. When the buyer’s agent looks for properties to show his buyer, he looks in the Multiple Listing Service. FSBO homes are not in the MLS.
3. People actively seeking a FSBO are few. According to statistics from NAR (National Association of Realtors®), 77% of homebuyers in 2005 purchased their home with a real estate agent, and 1/3 of For Sale By Owner homes were sold to someone the seller already knew.
4. Buyer’s agents bring qualified buyers to the table. Usually there is an interview process whereby the buyer’s agent assures that the buyer is able to get a loan to purchase the home. Many people who seek For Sale By Owner properties are those who ask for owner financing or other options because their credit is shaky.
5. Most important, the process of buying a home is a complicated one. The purchase of a home is the most important purchase most people will ever make. Until people are actually involved in the process, they sometimes think it won’t be much different than selling a car. Far from it! A home is way more expensive and there is a lot more to buying and selling one than simply signing the back of an automobile title and taking it to the DMV to get ownership transferred. A real estate professional can make sure that their client—the buyer or the seller—is informed of appropriate laws and procedures and handle the paperwork necessary to complete the sale.
6. Homes cost a lot of money and buyers need to be assured that the home is in the best condition possible, as well as being assured that they will receive a clear title to the property. Real estate professionals representing buyers and sellers can assure that the process goes smoothly, relieve much aggravation and potential conflict if there are problems with the sale, and obtain higher net proceeds for sellers, when compared to For Sale By Owners. On the buyer's side, an agent can guide the buyer as to his rights under real estate law and make sure the buyer does not pay too much for the home. In either case, the Realtor® does a lot of handholding.
I have been a real estate professional for many years. I don’t want to say that I’ve seen everything that can go right or wrong with a sale, but certainly I’ve seen most situations. I understand the financial and emotional impact buying and selling a home has on the average family.
What I don't understand is why people resist hiring a real estate professional. If a person is ill, he goes to a professional--his doctor. If he needs legal advice, he goes to his lawyer. There is no question of NOT paying for this type of professional help. Why do people feel that a Realtor® does not merit pay for professional services rendered? According to the National Association of Realtors®, the main reason sellers resist hiring a Realtor® is to save the commission.
Contrary to popular opinion, real estate agents earn every cent they make. They work long hours (including weekends and even holidays) on behalf of their clients and they defer payment until the home is sold. Real estate agents pay up front--out of their own pockets--for advertising, driving prospective buyers around, MLS services, website costs, telephone costs, computers, Internet access and so much more. It takes time, money, and effort to bring buyers and sellers together. Whether the agent represents the buyer or seller, if the transaction doesn't close, the agent receives nothing.
But if the transaction does close, the agent receives only a share of the perceived “standard 6%” commission. First, the commission is divided between the buyer agent's company and the listing agent's company. Then, and only then, does the agent get a share of his company's percentage.
If the house doesn't sell and the owner decides to not renew the listing or cancels it before the listing expires, the agent is out a lot of money and doesn't get paid anything at all. How does this square with the misconception that Realtors® "don't do anything?"
Most Realtors® work more than 40-hour weeks. They work when most people have the day off. They are not lazy people, and they put a lot of effort into getting their listings sold. Why do people not want to pay them? I'm still scratching my head.
Note: All real estate agents are not Realtors®. Realtor® is a term to denote a member of the National Association of Realtors®.
For more information:
http://www.realtor.org/publicaffairsweb.nsf/0/a7ca712a7fb7bb7a85256ba70055d57c?OpenDocument
http://www.realtor.org/prodser.nsf/files/2003HBS_sample.pdf/$FILE/2003HBS_sample.pdf
http://www.nwanews.com/adg/Business_Matters/158801
I don't necessarily agree with the proposed law. Americans have traditionally been free to make their own decisions, right or wrong, and certainly property ownership is no exception. In fact, property rights were some of the basic rights the founding fathers of our nation valued. An early version of the “Declaration of Independence” stated the rights of the colonists to “life, liberty, and property” instead of the final version of “life, liberty and the pursuit of happiness.”
On the other hand, there are many reasons to use the services of a Realtor®, some of which are so plain to see that I can’t understand why a buyer or seller would even consider trying to go it alone:
1. A person becomes a licensed Realtor® only after studying all the applicable laws, being tested on that knowledge, and continuing his/her education annually. Most Realtors® also seek advanced education resulting in designations such as Accredited Buyer Representative (ABR®), Certified Residential Specialist (CRS) and others. These designations require experience (a minimum number of transactions) as well as many courses to improve their knowledge to better serve their clients.
2. An experienced Realtor® knows the market inside and out and provides valuable advice to both buyers and sellers.
3. Most real estate agents primarily function as problem solvers. They provide a valuable buffer between buyer and seller to negotiate terms and solve problems without acrimony and to achieve a "win-win" situation for both sides. A lot of things can go wrong in a real estate transaction--from problems discovered during the home inspection, to problems with financing, to simple things like seeing that keys are delivered to the new owner. I don’t have enough space here to tell you about all the “fires” I’ve had to put out at the last minute to prevent a sale from collapsing.
4. Realtors® must comply with Fair Housing laws but owners selling their own property are exempt from the same laws.
5. Studies from the National Association of Realtors® have shown that for-sale-by-owners often receive less in net proceeds from the sale of their home than they would have if they had used a Realtor®--even after paying the commission. According to the National Association of Realtors®, in 2005 the median price of FSBO homes was $198,200 while the median price of agent-assisted home sales was $230,000.
6. Having a Realtor® saves a lot of time and trouble for a seller. The real estate professional will market the home, make valuable suggestions on presentation to help the home sell faster, assist with the complicated paperwork, and provide current data on home sales in order to price the home appropriately. Plus, because there will be a lock box on the home, the seller doesn’t have to go rushing home during his lunch hour to show it.
I don't argue with the right of a seller to sell his home himself. But as a buyer, I wouldn't even look at that home without the help of a buyer agent. How could I be sure that the person selling the home knows what he is doing? I would want to be assured of a clear title to the property. Would I know how to negotiate any necessary repairs? What if the seller would not cooperate in having the property inspected or properly repaired? What if the inspection discovers something so drastically wrong with the property that I ultimately don't want to buy it? Will the seller give my earnest money back or will I have to seek legal assistance?
For Sale By Owner (FSBO) sellers often think just getting their home on the Internet, putting a sign in the yard and ads in the paper, as well as having an open house, are all it takes to sell it. That is far from reality because:
1. Most buyers now have buyer representatives. This is especially important in NW Arkansas where many people are being transferred in (or out) because of employment. Most people relocating here do not pick up the newspaper to look for FSBOs or even look at FSBO websites. They get a buyer’s agent who knows the market and neighborhoods which will meet their family’s needs.
2. When the buyer’s agent looks for properties to show his buyer, he looks in the Multiple Listing Service. FSBO homes are not in the MLS.
3. People actively seeking a FSBO are few. According to statistics from NAR (National Association of Realtors®), 77% of homebuyers in 2005 purchased their home with a real estate agent, and 1/3 of For Sale By Owner homes were sold to someone the seller already knew.
4. Buyer’s agents bring qualified buyers to the table. Usually there is an interview process whereby the buyer’s agent assures that the buyer is able to get a loan to purchase the home. Many people who seek For Sale By Owner properties are those who ask for owner financing or other options because their credit is shaky.
5. Most important, the process of buying a home is a complicated one. The purchase of a home is the most important purchase most people will ever make. Until people are actually involved in the process, they sometimes think it won’t be much different than selling a car. Far from it! A home is way more expensive and there is a lot more to buying and selling one than simply signing the back of an automobile title and taking it to the DMV to get ownership transferred. A real estate professional can make sure that their client—the buyer or the seller—is informed of appropriate laws and procedures and handle the paperwork necessary to complete the sale.
6. Homes cost a lot of money and buyers need to be assured that the home is in the best condition possible, as well as being assured that they will receive a clear title to the property. Real estate professionals representing buyers and sellers can assure that the process goes smoothly, relieve much aggravation and potential conflict if there are problems with the sale, and obtain higher net proceeds for sellers, when compared to For Sale By Owners. On the buyer's side, an agent can guide the buyer as to his rights under real estate law and make sure the buyer does not pay too much for the home. In either case, the Realtor® does a lot of handholding.
I have been a real estate professional for many years. I don’t want to say that I’ve seen everything that can go right or wrong with a sale, but certainly I’ve seen most situations. I understand the financial and emotional impact buying and selling a home has on the average family.
What I don't understand is why people resist hiring a real estate professional. If a person is ill, he goes to a professional--his doctor. If he needs legal advice, he goes to his lawyer. There is no question of NOT paying for this type of professional help. Why do people feel that a Realtor® does not merit pay for professional services rendered? According to the National Association of Realtors®, the main reason sellers resist hiring a Realtor® is to save the commission.
Contrary to popular opinion, real estate agents earn every cent they make. They work long hours (including weekends and even holidays) on behalf of their clients and they defer payment until the home is sold. Real estate agents pay up front--out of their own pockets--for advertising, driving prospective buyers around, MLS services, website costs, telephone costs, computers, Internet access and so much more. It takes time, money, and effort to bring buyers and sellers together. Whether the agent represents the buyer or seller, if the transaction doesn't close, the agent receives nothing.
But if the transaction does close, the agent receives only a share of the perceived “standard 6%” commission. First, the commission is divided between the buyer agent's company and the listing agent's company. Then, and only then, does the agent get a share of his company's percentage.
If the house doesn't sell and the owner decides to not renew the listing or cancels it before the listing expires, the agent is out a lot of money and doesn't get paid anything at all. How does this square with the misconception that Realtors® "don't do anything?"
Most Realtors® work more than 40-hour weeks. They work when most people have the day off. They are not lazy people, and they put a lot of effort into getting their listings sold. Why do people not want to pay them? I'm still scratching my head.
Note: All real estate agents are not Realtors®. Realtor® is a term to denote a member of the National Association of Realtors®.
For more information:
http://www.realtor.org/publicaffairsweb.nsf/0/a7ca712a7fb7bb7a85256ba70055d57c?OpenDocument
http://www.realtor.org/prodser.nsf/files/2003HBS_sample.pdf/$FILE/2003HBS_sample.pdf
http://www.nwanews.com/adg/Business_Matters/158801
Monday, June 19, 2006
Looks Like the Adjustment Period is Here Too
It appears an adjustment period in NWA real estate has begun. Home prices are leveling out. There is a large inventory of homes for sale in the $200,000 and up category. I don’t believe prices will go down, but at the very least, I do not think they will rise as rapidly as they have in the past couple of years.
There are more homes to choose from now and buyers are taking their time looking. Even homes under $150K are staying on the market longer, where last year the good ones would have sold within a week or so.
Mortgage rates have been slowly but steadily rising and that affects home prices and home sales. When interest rates were at their lowest, many buyers who wanted to move up to a bigger, better home did so. Those people are now homeowners, not buyers. And for those who didn't buy, many are now staying in their current homes, since higher interest rates mean that they can purchase less house for the same money now.
What all this means to you depends on whether you are buying, selling, or staying put.
For buyers, it means more choices, perhaps a bit more home or extra amenities than they expected, and more time to make a decision.
For sellers, it means pricing the home realistically, perhaps doing a little extra sprucing up, and being patient.
For those staying put, the adjustment has no short-term effects. Home prices have traditionally increased over time and will no doubt continue to do so in the long term.
In a recent article, Parade Magazine stated “The wild housing boom of the past few years is over.” I would have to agree. The unprecedented, unwarranted increases experienced in some parts of the country are now coming down to more realistic numbers. And the high inventory of homes available in NW Arkansas, as well as higher interest rates, are contributing to an "adjustment" here as well.
Home prices in Northwest Arkansas have also risen significantly in the past few years but in more rational amounts than some of the “hot” markets such as San Francisco, Boston, Las Vegas, and Phoenix, where home prices have skyrocketed in just a few short years. A correction in that type of market is inevitable. It is also occurring here but on a smaller scale.
The thing to remember is that what happens in one part of the country doesn’t necessarily have any correlation to another part. In other words, the current adjustment in the real estate market will have many variations throughout the country. The traditional wisdom is that all real estate is "local" and that is certainly true here in NW Arkansas. Reading national headlines and statistics can cause undue concern. This adjustment period was not unexpected. The real estate market has always experienced swings and the current swing favors buyers.
People have not stopped moving to Northwest Arkansas. Good homes that are fairly priced continue to sell. But since there are more houses on the market, competition among sellers is higher, so the key is to price one's home at market value (or less) if a quick sale is needed. For buyers, there's a lot more to choose from.
For more information:
http://www.parade.com/articles/editions/2006/edition_05-21-2006/Buy-Sell
http://www.nwanews.com/adg/Business/155811/
There are more homes to choose from now and buyers are taking their time looking. Even homes under $150K are staying on the market longer, where last year the good ones would have sold within a week or so.
Mortgage rates have been slowly but steadily rising and that affects home prices and home sales. When interest rates were at their lowest, many buyers who wanted to move up to a bigger, better home did so. Those people are now homeowners, not buyers. And for those who didn't buy, many are now staying in their current homes, since higher interest rates mean that they can purchase less house for the same money now.
What all this means to you depends on whether you are buying, selling, or staying put.
For buyers, it means more choices, perhaps a bit more home or extra amenities than they expected, and more time to make a decision.
For sellers, it means pricing the home realistically, perhaps doing a little extra sprucing up, and being patient.
For those staying put, the adjustment has no short-term effects. Home prices have traditionally increased over time and will no doubt continue to do so in the long term.
In a recent article, Parade Magazine stated “The wild housing boom of the past few years is over.” I would have to agree. The unprecedented, unwarranted increases experienced in some parts of the country are now coming down to more realistic numbers. And the high inventory of homes available in NW Arkansas, as well as higher interest rates, are contributing to an "adjustment" here as well.
Home prices in Northwest Arkansas have also risen significantly in the past few years but in more rational amounts than some of the “hot” markets such as San Francisco, Boston, Las Vegas, and Phoenix, where home prices have skyrocketed in just a few short years. A correction in that type of market is inevitable. It is also occurring here but on a smaller scale.
The thing to remember is that what happens in one part of the country doesn’t necessarily have any correlation to another part. In other words, the current adjustment in the real estate market will have many variations throughout the country. The traditional wisdom is that all real estate is "local" and that is certainly true here in NW Arkansas. Reading national headlines and statistics can cause undue concern. This adjustment period was not unexpected. The real estate market has always experienced swings and the current swing favors buyers.
People have not stopped moving to Northwest Arkansas. Good homes that are fairly priced continue to sell. But since there are more houses on the market, competition among sellers is higher, so the key is to price one's home at market value (or less) if a quick sale is needed. For buyers, there's a lot more to choose from.
For more information:
http://www.parade.com/articles/editions/2006/edition_05-21-2006/Buy-Sell
http://www.nwanews.com/adg/Business/155811/
Wednesday, June 14, 2006
Baby Boomers Dominate 2nd Home Market
When I hear the phrase “baby boomers,” a picture forms in my mind’s eye – a picture of large numbers of well-educated people who are nearing retirement age. The number of people born between 1946 and 1964 now comprises the largest generation in U.S. history. They have affected everything from women’s lib and civil rights to glass ceilings and just about everything in between.
I am a baby boomer and a Realtor® so I was not surprised when I recently became aware of some studies by NAR as to the effect baby boomers are having on the housing market, not only nationally but also here in NW Arkansas.
A recent study by National Association of Realtors® (NAR) shows that 80% of baby boomers own their primary residence. The overall rate of home ownership is the United States is only 69%. According to the U.S. Census Bureau, there are 74.6 million owner-occupied homes. That means boomers own almost 60 million of them.
In addition, there are 6.8 million vacation/seasonal/second homes in the U.S. and boomers own 57% of them. Many boomers own more than one. Bella Vista anyone?
Not all boomers plan to make their vacation home their primary residence when they retire, but for those who do, the income tax advantages are very generous. Internal Revenue Service rules state that married homeowners who have lived in their primary residence for at least 2 out of the 5 years ending on the date of sale can exclude up to $500,000 of gain. Unmarried taxpayers can exclude up to $250,000 of gain.
After selling their primary residence, if they then move into their vacation home and make that their primary residence, the same rules apply: live in it for at least 2 out of the 5 years ending on the date of sale and another sizable capital gain can be excluded from taxable income. There is no limit on the number of times this provision of the tax code can be used.
Interest and property taxes on a second home are deductible each year. Add to that the advantage of tax-free capital gains and it’s easy to understand why many boomers will move from home to home. Having such favorable tax advantages can help build a comfortable retirement.
According to National Association of Realtors® study,”Leisure activities of interest to vacation-home owners include beach, lake or water sports, 57 percent; boating, 38 percent; hunting or fishing, 32 percent; golf, 21 percent; biking, hiking or horseback riding, 20 percent; ski or winter recreation, 17 percent; and tennis, 9 percent.” It’s no wonder Northwest Arkansas is so popular!
Boomers are in the midst of their highest-earning years. They realize the benefits property ownership provides. Not only do boomers understand the value of owning property, they understand the value of diversifying their assets.
More than half of all rental property in the United States is currently owned by boomers. Some own only one rental, but a considerable number own five or more properties. And NW Arkansas, despite the recent rise in multi-family prices, still provides good opportunities for investment.
Boomers have also branched out to ownership of commercial property and undeveloped land.
If I can help you find property that may help with your overall plans for home ownership now or in your retirement, please call me. I can help you find investment properties or land as well as a nice retirement home. And if you want to purchase a second home elsewhere, I communicate regularly with agents from all over the country who may be able to help.
For more information:
http://www.irs.gov/publications/p523/ar02.html#d0e1931
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/BabyBoomerStudy06?OpenDocument
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/2ndHomeSurvey06?OpenDocument
I am a baby boomer and a Realtor® so I was not surprised when I recently became aware of some studies by NAR as to the effect baby boomers are having on the housing market, not only nationally but also here in NW Arkansas.
A recent study by National Association of Realtors® (NAR) shows that 80% of baby boomers own their primary residence. The overall rate of home ownership is the United States is only 69%. According to the U.S. Census Bureau, there are 74.6 million owner-occupied homes. That means boomers own almost 60 million of them.
In addition, there are 6.8 million vacation/seasonal/second homes in the U.S. and boomers own 57% of them. Many boomers own more than one. Bella Vista anyone?
Not all boomers plan to make their vacation home their primary residence when they retire, but for those who do, the income tax advantages are very generous. Internal Revenue Service rules state that married homeowners who have lived in their primary residence for at least 2 out of the 5 years ending on the date of sale can exclude up to $500,000 of gain. Unmarried taxpayers can exclude up to $250,000 of gain.
After selling their primary residence, if they then move into their vacation home and make that their primary residence, the same rules apply: live in it for at least 2 out of the 5 years ending on the date of sale and another sizable capital gain can be excluded from taxable income. There is no limit on the number of times this provision of the tax code can be used.
Interest and property taxes on a second home are deductible each year. Add to that the advantage of tax-free capital gains and it’s easy to understand why many boomers will move from home to home. Having such favorable tax advantages can help build a comfortable retirement.
According to National Association of Realtors® study,”Leisure activities of interest to vacation-home owners include beach, lake or water sports, 57 percent; boating, 38 percent; hunting or fishing, 32 percent; golf, 21 percent; biking, hiking or horseback riding, 20 percent; ski or winter recreation, 17 percent; and tennis, 9 percent.” It’s no wonder Northwest Arkansas is so popular!
Boomers are in the midst of their highest-earning years. They realize the benefits property ownership provides. Not only do boomers understand the value of owning property, they understand the value of diversifying their assets.
More than half of all rental property in the United States is currently owned by boomers. Some own only one rental, but a considerable number own five or more properties. And NW Arkansas, despite the recent rise in multi-family prices, still provides good opportunities for investment.
Boomers have also branched out to ownership of commercial property and undeveloped land.
If I can help you find property that may help with your overall plans for home ownership now or in your retirement, please call me. I can help you find investment properties or land as well as a nice retirement home. And if you want to purchase a second home elsewhere, I communicate regularly with agents from all over the country who may be able to help.
For more information:
http://www.irs.gov/publications/p523/ar02.html#d0e1931
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/BabyBoomerStudy06?OpenDocument
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/2ndHomeSurvey06?OpenDocument
Tuesday, May 16, 2006
Are Home Prices Coming Down? Probably Not, but Future Construction May Be More Affordable
If you are in the market for a big, beautiful home with all the upgrades you can imagine, now is a good time to start some serious shopping. There is a glut of expensive homes available, especially in Bentonville, but also throughout all of Northwest Arkansas.
In the first quarter of 2006, there were 2,084 complete but unoccupied new houses in Benton County. That’s an increase of 160 percent in available complete inventory from the first quarter of 2005, with a 63 percent increase in the most recent quarter alone. Washington County experienced a smaller inventory increase of 71 percent over the past year – still a sizable increase.
Excluding the completed homes, there were 19,206 lots in the 269 active subdivisions in NW Arkansas in the first quarter of 2006. Using the most recent annual absorption rate implies that the supply of remaining lots in NW Arkansas active subdivisions is sufficient for 35.9 months (or 3 years). There were an additional 19,200 residential lots that have been at least preliminarily approved in NW Arkansas communities.
For too long now, builders seemed willing to pay exorbitant prices for land to build new homes, and land speculators did their part to see that prices went consistently up. Hopefully those days are over, at least for the time being.
Builders use a general rule-of-thumb that says the cost of the land should be approximately 20% of the price of the new home. If the builder pays $75,000 for a lot, he will probably build a $350,000 house on it. Thus the asking price will be $425,000. That is a lot of money – far more than the average family can afford.
If the builder can’t sell his new homes in a timely manner, he can easily find himself in financial difficulties. He must continue paying his construction loans whether the homes are selling or not. It doesn’t require a crystal ball to see that the price of lots will have to come down or the homes built on them will stay on the market longer than many builders can tolerate financially. It is also possible that some builders will be forced out of business.
The average homebuyer in this area can easily qualify for a $100,000 home – but there are few available. Even if he qualifies for a $150,000 home, the selection is extremely limited, mostly older re-sale homes. Smaller, more affordable homes sell more quickly. The American dream of owning your own home is not yet dead, but it is seriously ill in NW Arkansas. Builders must cut back on 3,000 sq. ft. homes with every amenity a person can think of and start building what people can afford to buy. And there is some evidence that this trend might be starting.
In looking at the various reports and accompanying statistics that cross my desk every week, I’m beginning to see some signs that cut back may be beginning. One of these indicators is a -1.7% change in building permit values. While economists might see this as a "negative", I see this as a positive thing. With the glut of expensive homes on the market, a negative value here could possibly reflect the necessary adjustment for building more modestly priced homes in the near future.
Another indicator shows that construction employment in the area increased by 1.1%, which might indicate more construction is under way. Taken together, these statistics tell me that construction is increasing, but the value of what is being built is less—not altogether a bad thing from the point of view of affordability.
For more information:
http://www.nwaonline.net/articles/2006/05/07/business/01cleansing.txt
http://www.nwaonline.net/articles/2006/05/09/business/01skylineresidential.txt
In the first quarter of 2006, there were 2,084 complete but unoccupied new houses in Benton County. That’s an increase of 160 percent in available complete inventory from the first quarter of 2005, with a 63 percent increase in the most recent quarter alone. Washington County experienced a smaller inventory increase of 71 percent over the past year – still a sizable increase.
Excluding the completed homes, there were 19,206 lots in the 269 active subdivisions in NW Arkansas in the first quarter of 2006. Using the most recent annual absorption rate implies that the supply of remaining lots in NW Arkansas active subdivisions is sufficient for 35.9 months (or 3 years). There were an additional 19,200 residential lots that have been at least preliminarily approved in NW Arkansas communities.
For too long now, builders seemed willing to pay exorbitant prices for land to build new homes, and land speculators did their part to see that prices went consistently up. Hopefully those days are over, at least for the time being.
Builders use a general rule-of-thumb that says the cost of the land should be approximately 20% of the price of the new home. If the builder pays $75,000 for a lot, he will probably build a $350,000 house on it. Thus the asking price will be $425,000. That is a lot of money – far more than the average family can afford.
If the builder can’t sell his new homes in a timely manner, he can easily find himself in financial difficulties. He must continue paying his construction loans whether the homes are selling or not. It doesn’t require a crystal ball to see that the price of lots will have to come down or the homes built on them will stay on the market longer than many builders can tolerate financially. It is also possible that some builders will be forced out of business.
The average homebuyer in this area can easily qualify for a $100,000 home – but there are few available. Even if he qualifies for a $150,000 home, the selection is extremely limited, mostly older re-sale homes. Smaller, more affordable homes sell more quickly. The American dream of owning your own home is not yet dead, but it is seriously ill in NW Arkansas. Builders must cut back on 3,000 sq. ft. homes with every amenity a person can think of and start building what people can afford to buy. And there is some evidence that this trend might be starting.
In looking at the various reports and accompanying statistics that cross my desk every week, I’m beginning to see some signs that cut back may be beginning. One of these indicators is a -1.7% change in building permit values. While economists might see this as a "negative", I see this as a positive thing. With the glut of expensive homes on the market, a negative value here could possibly reflect the necessary adjustment for building more modestly priced homes in the near future.
Another indicator shows that construction employment in the area increased by 1.1%, which might indicate more construction is under way. Taken together, these statistics tell me that construction is increasing, but the value of what is being built is less—not altogether a bad thing from the point of view of affordability.
For more information:
http://www.nwaonline.net/articles/2006/05/07/business/01cleansing.txt
http://www.nwaonline.net/articles/2006/05/09/business/01skylineresidential.txt
Thursday, May 11, 2006
Beaver Lake is Rising but Water Conservation Still in Effect in Bentonville and Rogers
Northwest Arkansas has received several inches of much needed rain in the past couple of weeks but more is needed to get back to normal levels. It would appear that the major drought affecting this area has been alleviated for the time being.
As I write this article, the water level in Beaver Lake is in excess of 1113 feet above sea level. If memory serves me correctly, that is some eight feet above the low we experienced earlier this year. The optimum level is 1120 feet above sea level.
We are very fortunate to have the Beaver Water District to meet the needs of the people and businesses in this area. BWD currently has sufficient water and treatment facilities to supply up to 100 million gallons of treated water per day. So far that is well above the highest demand. The district has on-going expansion plans and resources to stay ahead of our growing population’s demand.
Getting the water to the users is the problem for Bentonville and Rogers. The two cities now share two water transmission lines, one 24 inches wide, the other 30 inches. Together, the lines can transport a maximum of 29.5 million gallons of water a day to the two cities.
Bentonville has started construction of a 48-inch water line which is scheduled to go on line in April or May 2007. When Bentonville’s new water line is complete, Rogers will purchase the two older lines and take over as sole user.
Until then, water conservation is the rule for both cities. Procedures, consisting of six stages of conservation, were put into place in 2005. Water usage drops during the winter months so the conservation rules were temporarily relaxed.
With summer returning and the population continuing to swell, it would seem likely that even more water conservation will be needed this summer.
The first two stages of conservation are considered voluntary and consist mainly of common sense – limit time in the shower, run the dishwasher and washing machine only when full, reduce outdoor usage and so forth. From there, the stages continue through moderate mandatory measures all the way up to and including water rationing.
For more information:
Beaver Water District information and links to many other resources:
http://beaverwaterdistrict.org/
City of Rogers Water Utilities:
http://rwu.org/conservation.htm
City of Bentonville water conservation ordinance: http://www.bentonvillear.com/docs/utility/water_conservation_ordinance.pdf
As I write this article, the water level in Beaver Lake is in excess of 1113 feet above sea level. If memory serves me correctly, that is some eight feet above the low we experienced earlier this year. The optimum level is 1120 feet above sea level.
We are very fortunate to have the Beaver Water District to meet the needs of the people and businesses in this area. BWD currently has sufficient water and treatment facilities to supply up to 100 million gallons of treated water per day. So far that is well above the highest demand. The district has on-going expansion plans and resources to stay ahead of our growing population’s demand.
Getting the water to the users is the problem for Bentonville and Rogers. The two cities now share two water transmission lines, one 24 inches wide, the other 30 inches. Together, the lines can transport a maximum of 29.5 million gallons of water a day to the two cities.
Bentonville has started construction of a 48-inch water line which is scheduled to go on line in April or May 2007. When Bentonville’s new water line is complete, Rogers will purchase the two older lines and take over as sole user.
Until then, water conservation is the rule for both cities. Procedures, consisting of six stages of conservation, were put into place in 2005. Water usage drops during the winter months so the conservation rules were temporarily relaxed.
With summer returning and the population continuing to swell, it would seem likely that even more water conservation will be needed this summer.
The first two stages of conservation are considered voluntary and consist mainly of common sense – limit time in the shower, run the dishwasher and washing machine only when full, reduce outdoor usage and so forth. From there, the stages continue through moderate mandatory measures all the way up to and including water rationing.
For more information:
Beaver Water District information and links to many other resources:
http://beaverwaterdistrict.org/
City of Rogers Water Utilities:
http://rwu.org/conservation.htm
City of Bentonville water conservation ordinance: http://www.bentonvillear.com/docs/utility/water_conservation_ordinance.pdf
Wednesday, May 03, 2006
Will Your Taxes Be Higher or Lower in Arkansas?
Everyone asks me about taxes here in NW Arkansas compared to where they are moving from. It’s a hard question to answer, since it depends on where the person is moving from, and it depends on the situation of the person moving to NW Arkansas. I recently came across an article on the Internet (see below) that said Arkansas ranked in the middle of most to least tax-friendly states. According to this article, an Arkansan’s tax burden is 10.3% of his/her per capita income, which makes Arkansas #27 on the list.
Like most statistics, this list may or may not mean much to any one individual. It does take into consideration property tax, state sales and luxury taxes, state income taxes, fuel taxes, and more. But it does not consider many other types of taxes, such as city and local sales tax, excise tax, and estate and inheritance taxes. Nor has it considered tax credits you may qualify for or the type of income you have.
Last but not least, by its very nature it cannot consider those things that are most important to you and your family. Are you moving to Arkansas to take on a new position? Are you recently retired and looking for an agreeable climate where you can live without treacherous snow and ice for several months of the year? Do you need to move closer to family so you can help them or they can help you? How important is the cultural scene to you? Perhaps you’re more interested in beautiful scenery and good, clean air to breath than Broadway shows. These are all personal decisions that would hold more weight in a decision about where you want to live. Tax-friendliness of a state is much further down on the list for most people.
Different types of income have different tax consequences. Arkansas does not tax Social Security benefits, VA benefits, Workers’ Compensation, Unemployment Compensation, or Railroad Retirement benefits. Arkansas does not tax the first $9,000 of U.S. Military Enlisted compensation. The first $6,000 of U.S. Military Officer’s compensation is also exempt from state income tax.
The first $6,000 received from an employer-sponsored retirement plan and/or from an IRA distribution is exempt from Arkansas income tax. Arkansas also allows a direct credit of $21 against state income tax for everyone. If you are over 65, the credit is doubled. When the above factors are executed, many retirees find they have zero (0) state income tax to pay in Arkansas.
In every state, property taxes will vary according to the city, county, school district, library district, fire district, etc., where the property is located. The rule of thumb that we (realtors) use in Washington and Benton Counties is that property taxes will be slightly less than 1% of the purchase price, less the $300 Homestead Tax credit. This will vary according to municipality (i.e. their mil rate), and homes outside of city limits will have a mil rate less than those in a town.
According to Kiplinger’s Magazine, Arkansans pay very little property tax, $321 per capita. Only residents of Kentucky at $286, New Mexico at $283 and Alabama at $210 pay less. It’s not surprising that residents of two states that do not levy income taxes on earned income do pay considerably higher property taxes. New Jersey residents pay $1,591 per capita, New Hampshire residents pay $1,555 per capita and Texans pay $852.
Homeowners in Arkansas have who are at least 65 years age qualify to have their appraised evaluation capped. This provision helps senior citizens remain in their homes instead of being taxed out of them as evaluations increase. In addition, a property tax credit of up to $300 per year is available on a person’s principal place of residence, regardless of age.
And still another good point to note about Arkansas: it is heir-friendly. There is no estate tax in Arkansas.
The bottom line is that all political entities need revenue to provide services and that money must come from the people. All in all, I think Arkansas is very tax friendly compared to some other areas of the country.
For more information:
http://money.cnn.com/2006/04/10/pf/taxes/taxfriendly_states_2006/index.htm
http://www.bankrate.com/brm/itax/news/20051107a1.asp?caret=21
http://www.bankrate.com/brm/itax/state/state_tax_home.asp
http://www.bankrate.com/brm/itax/news/20051107b1.asp
http://www.retirementliving.com/RLtaxes.html
http://www.keepmedia.com/pubs/KiplingersRetirementReport/2002/07/01/129139?extID=10032&oliID=213
http://www.keepmedia.com/pubs/KiplingersRetirementReport/2001/03/01/128658?ba=a&bi=0&bp=97
http://www.taxadmin.org/fta/rate/tax_stru.html
http://www.forbes.com/free_forbes/2004/0315/171sidebar.html
Like most statistics, this list may or may not mean much to any one individual. It does take into consideration property tax, state sales and luxury taxes, state income taxes, fuel taxes, and more. But it does not consider many other types of taxes, such as city and local sales tax, excise tax, and estate and inheritance taxes. Nor has it considered tax credits you may qualify for or the type of income you have.
Last but not least, by its very nature it cannot consider those things that are most important to you and your family. Are you moving to Arkansas to take on a new position? Are you recently retired and looking for an agreeable climate where you can live without treacherous snow and ice for several months of the year? Do you need to move closer to family so you can help them or they can help you? How important is the cultural scene to you? Perhaps you’re more interested in beautiful scenery and good, clean air to breath than Broadway shows. These are all personal decisions that would hold more weight in a decision about where you want to live. Tax-friendliness of a state is much further down on the list for most people.
Different types of income have different tax consequences. Arkansas does not tax Social Security benefits, VA benefits, Workers’ Compensation, Unemployment Compensation, or Railroad Retirement benefits. Arkansas does not tax the first $9,000 of U.S. Military Enlisted compensation. The first $6,000 of U.S. Military Officer’s compensation is also exempt from state income tax.
The first $6,000 received from an employer-sponsored retirement plan and/or from an IRA distribution is exempt from Arkansas income tax. Arkansas also allows a direct credit of $21 against state income tax for everyone. If you are over 65, the credit is doubled. When the above factors are executed, many retirees find they have zero (0) state income tax to pay in Arkansas.
In every state, property taxes will vary according to the city, county, school district, library district, fire district, etc., where the property is located. The rule of thumb that we (realtors) use in Washington and Benton Counties is that property taxes will be slightly less than 1% of the purchase price, less the $300 Homestead Tax credit. This will vary according to municipality (i.e. their mil rate), and homes outside of city limits will have a mil rate less than those in a town.
According to Kiplinger’s Magazine, Arkansans pay very little property tax, $321 per capita. Only residents of Kentucky at $286, New Mexico at $283 and Alabama at $210 pay less. It’s not surprising that residents of two states that do not levy income taxes on earned income do pay considerably higher property taxes. New Jersey residents pay $1,591 per capita, New Hampshire residents pay $1,555 per capita and Texans pay $852.
Homeowners in Arkansas have who are at least 65 years age qualify to have their appraised evaluation capped. This provision helps senior citizens remain in their homes instead of being taxed out of them as evaluations increase. In addition, a property tax credit of up to $300 per year is available on a person’s principal place of residence, regardless of age.
And still another good point to note about Arkansas: it is heir-friendly. There is no estate tax in Arkansas.
The bottom line is that all political entities need revenue to provide services and that money must come from the people. All in all, I think Arkansas is very tax friendly compared to some other areas of the country.
For more information:
Washington and Benton County Property Millage Rates:
http://www.co.benton.ar.us/Administration/BCCollect/index.htm (scroll down and click on Current Millage Rates)
http://www.co.washington.ar.us (click on Information and then on Millage rates)
http://money.cnn.com/2006/04/10/pf/taxes/taxfriendly_states_2006/index.htm
http://www.bankrate.com/brm/itax/news/20051107a1.asp?caret=21
http://www.bankrate.com/brm/itax/state/state_tax_home.asp
http://www.bankrate.com/brm/itax/news/20051107b1.asp
http://www.retirementliving.com/RLtaxes.html
http://www.keepmedia.com/pubs/KiplingersRetirementReport/2002/07/01/129139?extID=10032&oliID=213
http://www.keepmedia.com/pubs/KiplingersRetirementReport/2001/03/01/128658?ba=a&bi=0&bp=97
http://www.taxadmin.org/fta/rate/tax_stru.html
http://www.forbes.com/free_forbes/2004/0315/171sidebar.html
Saturday, April 29, 2006
Arkansas Increases Minimum Wage
When Arkansas enacted legislation recently increasing the minimum wage from $5.15 to $6.25 per hour, it seemed everyone I talked with had an opinion of the benefits or the negative repercussions of such a move.
I’m going to pass along some of the comments, but first some facts:
Some of our neighboring states, namely Texas, Oklahoma, and Missouri, have done nothing to increase the minimum wage in their states above the Federal minimum of $5.15. Other neighbors – Tennessee, Louisiana, and Mississippi - don’t even have a minimum wage law. Kansas is the only state below the Federal minimum – a miniscule $2.65.
About half the states have minimum wage rates the same as the Federal rate. The state of Washington is currently the highest at $7.63 and that amount will increase periodically because it is pegged to inflation. Most of California is set at $6.75 but in the San Francisco area, it is $8.50. Minnesota is $6.15, Illinois $6.50, Massachusetts and New York are $6.75, and Oregon $7.50. The other states have rates between Washington’s and the Federal rate of $5.15.
Now for a sampling of the conflicting comments:
“Increasing the minimum wage will increase inflation and unemployment.”
“This will help the poorest paid workers in our state.”
“This will help the economy by giving workers more disposable income.”
“It will be harder for young people to find a job.”
Arkansas’ $1.10 increase becomes effective October 1, 2006. Only time will prove the whether the effects of this increase are beneficial or detrimental.
Click Comments below to let us know your thoughts.
For more information:
http://www.dol.gov/esa/minwage/america.htm
http://en.wikipedia.org/wiki/Minimum_wage
http://www.stateaction.org/blog/?p=140
I’m going to pass along some of the comments, but first some facts:
Some of our neighboring states, namely Texas, Oklahoma, and Missouri, have done nothing to increase the minimum wage in their states above the Federal minimum of $5.15. Other neighbors – Tennessee, Louisiana, and Mississippi - don’t even have a minimum wage law. Kansas is the only state below the Federal minimum – a miniscule $2.65.
About half the states have minimum wage rates the same as the Federal rate. The state of Washington is currently the highest at $7.63 and that amount will increase periodically because it is pegged to inflation. Most of California is set at $6.75 but in the San Francisco area, it is $8.50. Minnesota is $6.15, Illinois $6.50, Massachusetts and New York are $6.75, and Oregon $7.50. The other states have rates between Washington’s and the Federal rate of $5.15.
Now for a sampling of the conflicting comments:
“Increasing the minimum wage will increase inflation and unemployment.”
“This will help the poorest paid workers in our state.”
“This will help the economy by giving workers more disposable income.”
“It will be harder for young people to find a job.”
Arkansas’ $1.10 increase becomes effective October 1, 2006. Only time will prove the whether the effects of this increase are beneficial or detrimental.
Click Comments below to let us know your thoughts.
For more information:
http://www.dol.gov/esa/minwage/america.htm
http://en.wikipedia.org/wiki/Minimum_wage
http://www.stateaction.org/blog/?p=140
What is Infrastructure Anyhow? Effects of Growth on NW Arkansas
Hardly a day goes by that a new sign doesn’t appear somewhere in Washington or Benton County proclaiming that a new subdivision will soon appear on former agricultural land. Land costs have escalated so much that most new subdivisions will automatically be high density.
What does that mean to you and me? It means further stretching of the infrastructure in an area that until a few years ago was rural. Everyone agrees the population of Washington and Benton counties is growing so fast the infrastructure can’t keep up.
What do you think of when you hear the word infrastructure? Most people say traffic or transportation, and public schools. The daily commute to work and back home keeps traffic congestion on everyone’s mind but the list of needs is much longer and more complicated than that.
High-density subdivisions generally have small yards. Where will the children and adults play and exercise? Parks, recreation and open space will be needed.
More schools will have to be built and staffed. More school buses will be on the roads, not to mention the amazing number of parents who drive their children to school in the morning and reverse the procedure in the afternoon. It’s not unusual now to see streets and even highways blocked by vehicles waiting in line to drive onto the school grounds to pick up their child.
Water must be available. Beaver Water District currently has authority to use up to 120 million gallons of water a day from Beaver Lake. At what point does that amount become insufficient?
Increased population equals more sewage. Rural areas are generally not connected to a municipal sewer. When homes were being built on an acre or more of land, septic tanks were a viable solution. High-density subdivisions in rural areas have to take a different approach. Decentralized systems are replacing the traditional septic tank, serving hundreds of homes with one on-site system rather than one septic tank per home. My concern is the future. Who will maintain these systems when the developer has moved on and the homeowner hasn’t even thought about where his sewage goes?
We all want adequate police protection. As the population increases, more officers must be hired and trained. Increased staff will be required back at the station. Overcrowded courts and jails will have to be expanded.
Unincorporated areas usually have volunteer fire departments. Personnel have been trained to fight brush and grass fires and may be called upon occasionally to fight a structure fire.
A high-density subdivision alters the scenario. Consider this: a home is on fire and a call goes out to 911. The volunteers must first rush to the station to get the equipment before they can get to the fire. When they arrive, they are faced with a structure burning that has other homes close by on two sides. Depending on the wind factor, they may even have to protect homes across or down the road. Is there an adequate water supply available to fight the fire? Does the subdivision have hydrants? Does the fire department have the training and equipment to combat such a situation?
Libraries are often taken for granted but contribute greatly to our way of life. Free libraries are as American as apple pie and I, for one, would not want to think about a lack of excellent libraries. More people means more resources will be needed to meet demand. Buildings, employees, books, computers, audio/visual materials – all will need to expand.
The list of infrastructure requirements is almost endless. People are drawn to Northwest Arkansas for the quality of life here but the crush of people is threatening that very quality. The equation is simple: more residents = increased need for infrastructure = additional funding needed. Where is it coming from?
For more information:
http://www.nwanews.com/nwat/News/39618/
http://www.nwanews.com/adg/News/152416/
What does that mean to you and me? It means further stretching of the infrastructure in an area that until a few years ago was rural. Everyone agrees the population of Washington and Benton counties is growing so fast the infrastructure can’t keep up.
What do you think of when you hear the word infrastructure? Most people say traffic or transportation, and public schools. The daily commute to work and back home keeps traffic congestion on everyone’s mind but the list of needs is much longer and more complicated than that.
High-density subdivisions generally have small yards. Where will the children and adults play and exercise? Parks, recreation and open space will be needed.
More schools will have to be built and staffed. More school buses will be on the roads, not to mention the amazing number of parents who drive their children to school in the morning and reverse the procedure in the afternoon. It’s not unusual now to see streets and even highways blocked by vehicles waiting in line to drive onto the school grounds to pick up their child.
Water must be available. Beaver Water District currently has authority to use up to 120 million gallons of water a day from Beaver Lake. At what point does that amount become insufficient?
Increased population equals more sewage. Rural areas are generally not connected to a municipal sewer. When homes were being built on an acre or more of land, septic tanks were a viable solution. High-density subdivisions in rural areas have to take a different approach. Decentralized systems are replacing the traditional septic tank, serving hundreds of homes with one on-site system rather than one septic tank per home. My concern is the future. Who will maintain these systems when the developer has moved on and the homeowner hasn’t even thought about where his sewage goes?
We all want adequate police protection. As the population increases, more officers must be hired and trained. Increased staff will be required back at the station. Overcrowded courts and jails will have to be expanded.
Unincorporated areas usually have volunteer fire departments. Personnel have been trained to fight brush and grass fires and may be called upon occasionally to fight a structure fire.
A high-density subdivision alters the scenario. Consider this: a home is on fire and a call goes out to 911. The volunteers must first rush to the station to get the equipment before they can get to the fire. When they arrive, they are faced with a structure burning that has other homes close by on two sides. Depending on the wind factor, they may even have to protect homes across or down the road. Is there an adequate water supply available to fight the fire? Does the subdivision have hydrants? Does the fire department have the training and equipment to combat such a situation?
Libraries are often taken for granted but contribute greatly to our way of life. Free libraries are as American as apple pie and I, for one, would not want to think about a lack of excellent libraries. More people means more resources will be needed to meet demand. Buildings, employees, books, computers, audio/visual materials – all will need to expand.
The list of infrastructure requirements is almost endless. People are drawn to Northwest Arkansas for the quality of life here but the crush of people is threatening that very quality. The equation is simple: more residents = increased need for infrastructure = additional funding needed. Where is it coming from?
For more information:
http://www.nwanews.com/nwat/News/39618/
http://www.nwanews.com/adg/News/152416/
Saturday, April 01, 2006
Immigration Reform Protests and NW Arkansas
The massive demonstrations by Hispanics throughout the nation on the issue of immigration reform are a demonstration that this growing segment of the population may finally be coming of age politically. There have been immigration reform bills in the past, but the public outpouring by the Hispanic community has never been so great. There were no protests here in NW Arkansas, but the effect of the protests may eventually be felt here.
Immigration of people from other nations and cultures are what has made the US a great and dynamic nation, and although laws are necessary, I don't think they should be racist and restrictive. As the granddaughter of immigrants from Finland and Sweden, I have experienced first hand how people from other nations make our own nation stronger. The strong work ethic and emphasis on education made the northeastern Minnesota area where I grew up a dynamic community of many cultures where education was prized. Our public schools there were far superior to those in other parts of the state until the mining boom there dissipated in the past 25 years or so. The desire to assimilate spurred the new citizens to raise their children to surpass their own educational and professional achievements and contribute to their communities in a positive manner. The original arrivals could not speak English when they arrived and most worked at menial jobs. Their children all spoke English, worked at better jobs than their parents had, and many encouraged their children, in turn, to obtain college educations to become professionals.
In the past, various ethnic groups have provided massive migrations to our shores. Many of these groups were discriminated against when they first arrived, but now they have become part of the fabric of our nation. The Irish and Italians who arrived in the late 19th and early 20th century are typical of this pattern. Many of the Irish became policemen in the Eastern cities where they settled. And in NW Arkansas the Italians who settled here have created traditions which continue to enrich the area culture and economy (for example, the Tontitown Grape Festival, restaurants, and home-grown industries), even as their children and grandchildren have assimilated and prospered.
For northwest Arkansas, the continued development of the area depends on immigrants. Our area is in a new initial phase of the typical immigration pattern for newly arrived groups. There are increasing numbers of Asians and Pacific Islanders as well as Hispanics moving to the area. Many of the latter are first generation arrivals who don't speak much English. Some are illegal. But their children all attend our public schools and enrich the cultural environment, enhancing the world view of the native Arkansan children. With time these families will assimilate, just as previous generations have done. And our area will be richer for their presence.
The economy of our area also depends on these new arrivals. Much of the new construction of area housing, as well as factory jobs, is made possible by these new arrivals. Many builders now prefer Hispanic crews--they work hard and they take pride in their work, creating beautiful homes for residents and others who are relocating here because of Wal-mart and other major businesses in the area. Many of these new immigrants also work in jobs--for example, in the poultry plants--that local people do not want. They pay taxes and pay into the social security system, helping to assure that when baby boomers and even their children retire, there will be money for the system to be able to pay social security benefits. Without them, our area would not be the driving economic engine that it is.
For additional information, see also:
http://immigration.about.com/b/a/255666.htm
http://www.msnbc.msn.com/id/10704013
http://www.cnn.com/2006/POLITICS/03/27/immigration.rallies.ap/
http://www.npr.org/templates/story/story.php?storyId=5308394&ft=1&f=1001
http://www.usimmigrationsupport.org/
http://teacher.scholastic.com/scholasticnews/news/article_thu.asp
Immigration of people from other nations and cultures are what has made the US a great and dynamic nation, and although laws are necessary, I don't think they should be racist and restrictive. As the granddaughter of immigrants from Finland and Sweden, I have experienced first hand how people from other nations make our own nation stronger. The strong work ethic and emphasis on education made the northeastern Minnesota area where I grew up a dynamic community of many cultures where education was prized. Our public schools there were far superior to those in other parts of the state until the mining boom there dissipated in the past 25 years or so. The desire to assimilate spurred the new citizens to raise their children to surpass their own educational and professional achievements and contribute to their communities in a positive manner. The original arrivals could not speak English when they arrived and most worked at menial jobs. Their children all spoke English, worked at better jobs than their parents had, and many encouraged their children, in turn, to obtain college educations to become professionals.
In the past, various ethnic groups have provided massive migrations to our shores. Many of these groups were discriminated against when they first arrived, but now they have become part of the fabric of our nation. The Irish and Italians who arrived in the late 19th and early 20th century are typical of this pattern. Many of the Irish became policemen in the Eastern cities where they settled. And in NW Arkansas the Italians who settled here have created traditions which continue to enrich the area culture and economy (for example, the Tontitown Grape Festival, restaurants, and home-grown industries), even as their children and grandchildren have assimilated and prospered.
For northwest Arkansas, the continued development of the area depends on immigrants. Our area is in a new initial phase of the typical immigration pattern for newly arrived groups. There are increasing numbers of Asians and Pacific Islanders as well as Hispanics moving to the area. Many of the latter are first generation arrivals who don't speak much English. Some are illegal. But their children all attend our public schools and enrich the cultural environment, enhancing the world view of the native Arkansan children. With time these families will assimilate, just as previous generations have done. And our area will be richer for their presence.
The economy of our area also depends on these new arrivals. Much of the new construction of area housing, as well as factory jobs, is made possible by these new arrivals. Many builders now prefer Hispanic crews--they work hard and they take pride in their work, creating beautiful homes for residents and others who are relocating here because of Wal-mart and other major businesses in the area. Many of these new immigrants also work in jobs--for example, in the poultry plants--that local people do not want. They pay taxes and pay into the social security system, helping to assure that when baby boomers and even their children retire, there will be money for the system to be able to pay social security benefits. Without them, our area would not be the driving economic engine that it is.
For additional information, see also:
http://immigration.about.com/b/a/255666.htm
http://www.msnbc.msn.com/id/10704013
http://www.cnn.com/2006/POLITICS/03/27/immigration.rallies.ap/
http://www.npr.org/templates/story/story.php?storyId=5308394&ft=1&f=1001
http://www.usimmigrationsupport.org/
http://teacher.scholastic.com/scholasticnews/news/article_thu.asp
Wednesday, March 29, 2006
Property tax relief for Arkansas homeowners
The words tax and relief aren’t often found in the same sentence but Arkansas has some provisions to help relieve the property tax burden on homeowners. With income taxes on most people’s minds this time of year and property tax bills now arriving in mail boxes, I thought this would be a good time to mention some of these benefits.
The technical name is Amendment 79 but it's frequently referred to as the "homestead exemption." The benefits are easy to understand and easy to get.
A credit of $300 per year is available to lower property taxes on a person’s principal place of residence. Notify your county assessor once and the credit will be applied to your tax bill every year as long as the property remains your principal residence. There is a short form which must be filled out (see below).
Another provision allows homeowners age 65 and up to have their appraised evaluation capped. The result is that taxes on your home will never increase due to a reappraisal. But bear in mind, a major improvement to your property can increase the appraised value and a change in the millage rate will also affect the amount of tax you must pay. To have your evaluation capped, you must be age 65 or older on January 1 of the year you apply, complete a simple form and send it with proof of age to your county assessor.
Homeowners who are disabled as defined by the Social Security Administration also qualify for the cap on appraised value regardless of age.
For more details, go to http://www.arkansas.gov/acd/faqs.html.
The Washington County assessor has an explanation of Amendment 79 at http://www.co.washington.ar.us/Assessor/Am79.htm. This is a one-page website and if you read the paragraph above the assessors address, you’ll find a link to the claim form or go directly to http://www.co.washington.ar.us/Assessor/forms/hswbform.pdf.
If your home is located in Benton County, you can access the form at http://www.co.benton.ar.us/Administration/BCAssessor/HomesteadApp.pdf.
The technical name is Amendment 79 but it's frequently referred to as the "homestead exemption." The benefits are easy to understand and easy to get.
A credit of $300 per year is available to lower property taxes on a person’s principal place of residence. Notify your county assessor once and the credit will be applied to your tax bill every year as long as the property remains your principal residence. There is a short form which must be filled out (see below).
Another provision allows homeowners age 65 and up to have their appraised evaluation capped. The result is that taxes on your home will never increase due to a reappraisal. But bear in mind, a major improvement to your property can increase the appraised value and a change in the millage rate will also affect the amount of tax you must pay. To have your evaluation capped, you must be age 65 or older on January 1 of the year you apply, complete a simple form and send it with proof of age to your county assessor.
Homeowners who are disabled as defined by the Social Security Administration also qualify for the cap on appraised value regardless of age.
For more details, go to http://www.arkansas.gov/acd/faqs.html.
The Washington County assessor has an explanation of Amendment 79 at http://www.co.washington.ar.us/Assessor/Am79.htm. This is a one-page website and if you read the paragraph above the assessors address, you’ll find a link to the claim form or go directly to http://www.co.washington.ar.us/Assessor/forms/hswbform.pdf.
If your home is located in Benton County, you can access the form at http://www.co.benton.ar.us/Administration/BCAssessor/HomesteadApp.pdf.
Sunday, March 19, 2006
Crystal Bridges Museum of American Art
Northwest Arkansas in general and Bentonville in particular will take on a new personality when Crystal Bridges Museum of American Art opens. Benton County is already facing phenomenal growth with homes, offices, businesses, huge shopping malls, and a brand new hospital popping up all over former agricultural land.
Crystal Bridges Museum of American Art plans to open in 2009 on 100 acres in Bentonville, not far from Sam Walton’s original 5- and 10-cent store. The museum will house the private collection of American art that Sam’s daughter, Alice Walton, has been quietly collecting for years.
It is estimated that each year approximately 250,000 visitors will come to see not only this fabulous collection but also sculpture gardens and collections on loan from other museums.
Just think: once-quiet Bentonville will become a destination for art lovers. I’m sure the museum and its programs will provide cultural, educational and economic benefits to the area that would have been unthinkable just a few years ago. With the population of our area of NW Arkansas expected to reach a million people by the year 2025, Crystal Bridges Museum of American Art promises to become an incredible asset.
For a glimpse of the planned building and some of the art, go to the museum's website http://www.crystalbridges.org/
Crystal Bridges Museum of American Art plans to open in 2009 on 100 acres in Bentonville, not far from Sam Walton’s original 5- and 10-cent store. The museum will house the private collection of American art that Sam’s daughter, Alice Walton, has been quietly collecting for years.
It is estimated that each year approximately 250,000 visitors will come to see not only this fabulous collection but also sculpture gardens and collections on loan from other museums.
Just think: once-quiet Bentonville will become a destination for art lovers. I’m sure the museum and its programs will provide cultural, educational and economic benefits to the area that would have been unthinkable just a few years ago. With the population of our area of NW Arkansas expected to reach a million people by the year 2025, Crystal Bridges Museum of American Art promises to become an incredible asset.
For a glimpse of the planned building and some of the art, go to the museum's website http://www.crystalbridges.org/
Bella Vista – will it remain a village or incorporate as a city?
Bella Vista is another area of booming NW Arkansas that has seen its own share of incredible growth. The village, as it is still known, was started some 40 years ago as a place for retirees to enjoy living among lakes, trees and golf courses. It is located north of Bentonville, just south of the Missouri border.
Since inception the quiet village has grown tremendously. It is estimated there are some 24,000 residents now – up from 16,500 in 2000. No one sees growth slowing anytime soon.
Roads have improved and Bella Vista is increasingly becoming home to families with children. Rush hour traffic clogs the streets as residents commute to jobs in surrounding cities.
The question now on everyone’s mind is whether to incorporate. The issue will be on the November 2006 ballot. As an individual, I can't influence the issue one way or another, but it occurs to me that a community the size of Bella Vista should be a municipal entity, not a private one. The people currently support their entire infrastructure by paying monthly assessments - police, fire department, roads, library, recreational facilities, and much more. The majority of the taxes they pay are not returned to the village because it is not incorporated. The incorporation issue is of paramount importance and I urge all current and potential residents to learn all they can before the election.
For more information go to http://en.wikipedia.org/wiki/Bella_Vista%2C_Arkansas or http://www.incorporatebellavista.com
Since inception the quiet village has grown tremendously. It is estimated there are some 24,000 residents now – up from 16,500 in 2000. No one sees growth slowing anytime soon.
Roads have improved and Bella Vista is increasingly becoming home to families with children. Rush hour traffic clogs the streets as residents commute to jobs in surrounding cities.
The question now on everyone’s mind is whether to incorporate. The issue will be on the November 2006 ballot. As an individual, I can't influence the issue one way or another, but it occurs to me that a community the size of Bella Vista should be a municipal entity, not a private one. The people currently support their entire infrastructure by paying monthly assessments - police, fire department, roads, library, recreational facilities, and much more. The majority of the taxes they pay are not returned to the village because it is not incorporated. The incorporation issue is of paramount importance and I urge all current and potential residents to learn all they can before the election.
For more information go to http://en.wikipedia.org/wiki/Bella_Vista%2C_Arkansas or http://www.incorporatebellavista.com
Thursday, March 09, 2006
Good News/Bad News for the Springdale Northern Bypass
The U.S. 412 bypass of Springdale has received a record of decision from the Federal Highway Administration. Now all that needs to be done is to figure out how to pay for it! The estimated cost currently stands at some $300 million with only $31 million in combined federal and state funds earmarked for the 20-mile highway.
Ten years have passed since a study of alternatives for the bypass began in 1996 and it will be many more years before it is even partially constructed. With the escalating price of land in the area it seems obvious that costs will only go one way – up. “This project has to have federal money,” said John McLarty, transportation planner for the Northwest Arkansas Regional Planning Commission. “It’s just too big.”
Highway 412 is a major east-west route through Springdale for traffic coming to and from Tulsa area as well as off Interstate 540. No one argues the need for the bypass, which is expected to channel much of the truck traffic around the city. However, it appears the bypass will have to be built in segments, as funding becomes available. It may take until the year 2030 before the road nears completion.
As I mentioned in my posting March 6, “A Western By-Pass? Great Idea!” (scroll down to read the article) other roads are being planned to alleviate gridlock in Northwest Arkansas, but the 412 bypass is scheduled to come first. We must find a way to get moving on all these projects, the sooner the better.
For more information:http://www.nwanews.com/adg/News/147680/
Ten years have passed since a study of alternatives for the bypass began in 1996 and it will be many more years before it is even partially constructed. With the escalating price of land in the area it seems obvious that costs will only go one way – up. “This project has to have federal money,” said John McLarty, transportation planner for the Northwest Arkansas Regional Planning Commission. “It’s just too big.”
Highway 412 is a major east-west route through Springdale for traffic coming to and from Tulsa area as well as off Interstate 540. No one argues the need for the bypass, which is expected to channel much of the truck traffic around the city. However, it appears the bypass will have to be built in segments, as funding becomes available. It may take until the year 2030 before the road nears completion.
As I mentioned in my posting March 6, “A Western By-Pass? Great Idea!” (scroll down to read the article) other roads are being planned to alleviate gridlock in Northwest Arkansas, but the 412 bypass is scheduled to come first. We must find a way to get moving on all these projects, the sooner the better.
For more information:http://www.nwanews.com/adg/News/147680/
Monday, March 06, 2006
New Mall in Rogers, How Development Has Occurred
An interesting special report in the NW Arkansas edition of the Arkansas Democrat Gazette last Sunday, March 5, details the who and how of all of the construction going on with regard to the new mall and surrounding development. This mall promises to be a “shopping mecca” for the area, and there is certainly a lot of dirt being moved around as well as buildings popping out of the ground at a rapid pace. In a sense, it is the essence of the growth happening in Benton County, as subdivisions spring up almost daily. And in the near future people living in those subdivisions will have convenient shopping, without having to drive to the NW Arkansas Mall and surrounding stores in Fayetteville. Good for consumers in Benton County, maybe not so good for owners of the shops in the Fayetteville Mall.
For the complete article: http://www.nwanews.com/adg/News/147652
For the complete article: http://www.nwanews.com/adg/News/147652
High prices drive homebuyers to outlying areas
Living outside the main areas of employment and having to spend time and money commuting has long been a way of life for many people nationwide. And increasingly, Northwest Arkansas is no exception. Finding a nice home for less than $150,000 in Fayetteville, Springdale, Rogers or Bentonville is nearly impossible these days. That means people have to choose between renting, which offers no hope of equity or appreciation, and commuting to and from one of the outlying “bedroom” communities. For example, Rogers issued 375 building permits in the last 3 months of 2005 for homes with an average price of $177,989. Compare that to the average prices for homes in Gravette ($91,186), Decatur ($65,000), and Gentry ($77,500). With the cost of gasoline still at record high prices, the commute may be a trade-off, but with affordable homes rapidly disappearing in the 4 major towns of NW Arkansas, these outlying areas are the only hope for those wishing to purchase a home, building equity for the future, and acquiring a piece of the American Dream.
For more information: http://nwanews.com/adg/News/147089/
For more information: http://nwanews.com/adg/News/147089/
Water Supply--Another Challenge for NW Arkansas Growth
Officials say there’s enough water in Beaver Lake to satisfy the area’s needs to between 2031 and 2049. The challenge will be getting that water to the homes and businesses of the thousands of people who are flocking to the area every year.
Beaver Water District, the primary water source for Northwest Arkansas, supplies water to Fayetteville, Springdale, Bentonville and Rogers and surrounding areas. The mandate of the district is simple but exacting; “We have to provide the water that people demand,” Beaver Water District Chief Executive Officer Alan Fortenberry said.
In an effort to provide clean water to its customers, the district is working with counties surrounding Beaver Lake to restrict development in the watershed to ensure development doesn’t endanger the water quality. Some oppose the restrictions because land for development is in demand. But Fortenberry said not protecting the water supply from pollution would require the district to increase treatment, which would increase the cost of water charged to customers.
The water situation affects not only the major towns but also some of the smaller communities of the area. For example, Bentonville is about to begin a $15 million project to lay 13.77 miles of 48-inch water line to bring in water from Beaver Lake by the summer of 2007, city utilities director Britt Vance said. Bentonville and Rogers now share two water transmission lines, one 24 inches wide, the other 30 inches. Together, they can transport up to 29.5 million gallons of water a day to the two cities, which limits the amount of water that can be pumped to each. Completion of Bentonville’s project will help alleviate Rogers problems because Rogers plans to pay Bentonville $7.4 million to take over as the sole user of the 24- and 30-inch lines after the Bentonville project is completed.
For smaller communities, a good example is Lincoln. In February 1995, 270 rural residents signed up for water from Lincoln, which would require about 85 miles of water lines. In March 2001, when the town got funding from the Agriculture Department’s Rural Development, the project included 462 households and 106 miles of pipeline. Now the project embraces more than 800 households and requires 135 miles of water line at a cost of around $7.5 million, and by the time the project is completed, Public Works director Chuck Wood said there could be as many as 900 families drawing water from the new lines. Towns like Gentry, Gravette and Harrison have also just finished large similar pipeline projects to provide more water for their rural neighbors, he said. “This whole area is just booming,” Wood said. “The only thing that we can do is build more infrastructure to get water to them.”
For more information: http://nwanews.com/adg/News/147078/
Beaver Water District, the primary water source for Northwest Arkansas, supplies water to Fayetteville, Springdale, Bentonville and Rogers and surrounding areas. The mandate of the district is simple but exacting; “We have to provide the water that people demand,” Beaver Water District Chief Executive Officer Alan Fortenberry said.
In an effort to provide clean water to its customers, the district is working with counties surrounding Beaver Lake to restrict development in the watershed to ensure development doesn’t endanger the water quality. Some oppose the restrictions because land for development is in demand. But Fortenberry said not protecting the water supply from pollution would require the district to increase treatment, which would increase the cost of water charged to customers.
The water situation affects not only the major towns but also some of the smaller communities of the area. For example, Bentonville is about to begin a $15 million project to lay 13.77 miles of 48-inch water line to bring in water from Beaver Lake by the summer of 2007, city utilities director Britt Vance said. Bentonville and Rogers now share two water transmission lines, one 24 inches wide, the other 30 inches. Together, they can transport up to 29.5 million gallons of water a day to the two cities, which limits the amount of water that can be pumped to each. Completion of Bentonville’s project will help alleviate Rogers problems because Rogers plans to pay Bentonville $7.4 million to take over as the sole user of the 24- and 30-inch lines after the Bentonville project is completed.
For smaller communities, a good example is Lincoln. In February 1995, 270 rural residents signed up for water from Lincoln, which would require about 85 miles of water lines. In March 2001, when the town got funding from the Agriculture Department’s Rural Development, the project included 462 households and 106 miles of pipeline. Now the project embraces more than 800 households and requires 135 miles of water line at a cost of around $7.5 million, and by the time the project is completed, Public Works director Chuck Wood said there could be as many as 900 families drawing water from the new lines. Towns like Gentry, Gravette and Harrison have also just finished large similar pipeline projects to provide more water for their rural neighbors, he said. “This whole area is just booming,” Wood said. “The only thing that we can do is build more infrastructure to get water to them.”
For more information: http://nwanews.com/adg/News/147078/
A Western By-Pass? Great Idea!
Planners and elected officials in Northwest Arkansas are eyeing a four-lane highway to cut through western Benton and Washington counties and avoid additional gridlock on Interstate 540. It doesn’t have an exact location, nor money to pay for it--yet.
The Northwest Arkansas Council, which includes some of the region’s wealthiest and most influential people, has placed the proposed highway on its list of road projects it deems important to the region’s future. And a committee of the Northwest Arkansas Regional Planning Commission has included the highway, known as the western bypass, in the draft of a 2030 long-range transportation plan the commission will hand over to the Arkansas Highway and Transportation Department next month.
The proposed highway wouldn’t be constructed until after a western bypass of the Bella Vista stretch of I-540 and a U.S. 412 bypass north of Springdale are completed, according to John McLarty, the transportation planner for the regional planning commission. “But it’s not too early to begin planning the road.”
The western freeway is a great idea, and it’s encouraging to note that planners are starting to think in longer terms. It takes years to go from identifying the need to completing the project, and it is essential to get this project in place while there is still sufficient, undeveloped land available. The 412 bypass has been delayed again and again by impact studies while the areas where the original three proposed routes might have been built have been filled up with new homes. And since the 412 bypass won’t be built for many years due to funding deficits, maybe these planners can begin getting their proposal to legislators so that when the project is ready, the funding will be there.
In the meantime, there will have to be improvements and additions to I-540. Twenty-five years is a long time for the western bypass to become a reality. But knowing that planners are even thinking about it is a start.
For more information: http://nwanews.com/adg/News/147123/
The Northwest Arkansas Council, which includes some of the region’s wealthiest and most influential people, has placed the proposed highway on its list of road projects it deems important to the region’s future. And a committee of the Northwest Arkansas Regional Planning Commission has included the highway, known as the western bypass, in the draft of a 2030 long-range transportation plan the commission will hand over to the Arkansas Highway and Transportation Department next month.
The proposed highway wouldn’t be constructed until after a western bypass of the Bella Vista stretch of I-540 and a U.S. 412 bypass north of Springdale are completed, according to John McLarty, the transportation planner for the regional planning commission. “But it’s not too early to begin planning the road.”
The western freeway is a great idea, and it’s encouraging to note that planners are starting to think in longer terms. It takes years to go from identifying the need to completing the project, and it is essential to get this project in place while there is still sufficient, undeveloped land available. The 412 bypass has been delayed again and again by impact studies while the areas where the original three proposed routes might have been built have been filled up with new homes. And since the 412 bypass won’t be built for many years due to funding deficits, maybe these planners can begin getting their proposal to legislators so that when the project is ready, the funding will be there.
In the meantime, there will have to be improvements and additions to I-540. Twenty-five years is a long time for the western bypass to become a reality. But knowing that planners are even thinking about it is a start.
For more information: http://nwanews.com/adg/News/147123/
GROWTH - Outward or Upward?
OUTWARD GROWTH is the current norm along the Interstate 540 corridor in Benton and Washington counties, and this worries some city planners and elected officials. They want to see developers build upward, filling in existing city space with denser developments such as multistory apartments.
Dense, upward development leads to more people living per square mile, less cost to the cities to provide water, roads and other services, and less need for outward development of rural land, said Steve Luoni, director of the Community Design Center in the School of Architecture of the University of Arkansas at Fayetteville.
But people have been slow to embrace UPWARD GROWTH according to Fayetteville’s Senior Planner Jeremy Pate, “It’s going to take a while to slow down outward development. People want to live at the end of a cul-de-sac.”
Developers say they are building houses outward from the cities instead of upward with denser apartments and condominiums because that’s what people want and that’s where they can make a profit. They built 36,201 new housing units in the four major cities from 1990 to 2004. About 63 percent of those were single-family dwellings, according to statistics from the Northwest Arkansas Regional Planning Commission.
“Primarily, that’s what the market demands. People don’t want ‘up’ — not around here,” said Gary Brandon, who is building several subdivisions on the western edge of the I-540 corridor, including one of 117 acres between Lowell and Cave Springs and another of 54 acres on the outskirts of Tontitown. “They’re not that keen on condos yet.”
Kathy Deck, associate director of the UA Center for Business and Economic Research, said the growing population will continue to demand homes on the outskirts of town. Condos will not appeal to families until the price of gasoline becomes too high or traffic becomes too congested to commute from outlying communities, she said.
Richard Alexander, a developer of condominiums and mixed-use buildings in central Fayetteville, would agree. He said his market is based on the downtown location of the projects and will appeal to people because they won’t have to drive to go shopping or to the university. “There is that niche looking for a lack of a commute,” said Alexander.
Even though cities are spreading, some officials say the finite supply of land and market forces eventually will make upward growth the norm in Northwest Arkansas. “Our land space is dwindling,” said Rogers Alderman Mark Kruger. “At some point we will run out of space, and up will be the only way to go.”
For more information: http://nwanews.com/adg/News/147079/
Dense, upward development leads to more people living per square mile, less cost to the cities to provide water, roads and other services, and less need for outward development of rural land, said Steve Luoni, director of the Community Design Center in the School of Architecture of the University of Arkansas at Fayetteville.
But people have been slow to embrace UPWARD GROWTH according to Fayetteville’s Senior Planner Jeremy Pate, “It’s going to take a while to slow down outward development. People want to live at the end of a cul-de-sac.”
Developers say they are building houses outward from the cities instead of upward with denser apartments and condominiums because that’s what people want and that’s where they can make a profit. They built 36,201 new housing units in the four major cities from 1990 to 2004. About 63 percent of those were single-family dwellings, according to statistics from the Northwest Arkansas Regional Planning Commission.
“Primarily, that’s what the market demands. People don’t want ‘up’ — not around here,” said Gary Brandon, who is building several subdivisions on the western edge of the I-540 corridor, including one of 117 acres between Lowell and Cave Springs and another of 54 acres on the outskirts of Tontitown. “They’re not that keen on condos yet.”
Kathy Deck, associate director of the UA Center for Business and Economic Research, said the growing population will continue to demand homes on the outskirts of town. Condos will not appeal to families until the price of gasoline becomes too high or traffic becomes too congested to commute from outlying communities, she said.
Richard Alexander, a developer of condominiums and mixed-use buildings in central Fayetteville, would agree. He said his market is based on the downtown location of the projects and will appeal to people because they won’t have to drive to go shopping or to the university. “There is that niche looking for a lack of a commute,” said Alexander.
Even though cities are spreading, some officials say the finite supply of land and market forces eventually will make upward growth the norm in Northwest Arkansas. “Our land space is dwindling,” said Rogers Alderman Mark Kruger. “At some point we will run out of space, and up will be the only way to go.”
For more information: http://nwanews.com/adg/News/147079/
Sunday, February 26, 2006
My Take on the New Millken Report (see below)
The new Millken Report has NW Arkansas continuing in the top 10 nationally as a vibrant economic zone. However, there were two areas of concern for possible future trends in the area: a low rating on technology output growth (a positive rating on this factor leads to higher paying professional and high-skill jobs) and increased housing values, which are now at the national average. The two trends, together with the strong job growth rating, points to a strong economy with low unemployment. But that job growth is and will continue to be of lower paying jobs which require less education. This, in my mind, hints at salaries for the average working person not keeping up with the cost of housing, thus creating a potential crisis in affordable housing.
When NW Arkansas topped the Millken Report a few years ago ahead of Las Vegas, the region catapulted to the top of the national radar in many respects. In the real estate market all of a sudden, in addition to local investors, there appeared investors from all over the country looking for “reasonable” investment property, beginning the upward exponential curve in prices for low-end homes and multi-family properties.
What happened was that many of the older existing homes, previously priced under $100K, began creeping upward in price as investors competed with first-time and low-income home buyers. Homes in that price range became smaller and shabbier as prices continued to rise significantly over the past couple of years. Now it is almost impossible to find a livable home for under $130K. Most homes in that price range either need work or are very small or both.
Sometimes these small fixer-uppers are even priced higher per square foot than nicer, larger homes. As recently as 3-4 years ago (before NW Arkansas was #1 according to the Millken Report), an older home in Springdale usually was listed for and sold for under $55 per square foot in the under $100K price range. Now these same homes—many in barely livable condition—are listed for and sell for over $85 per square foot. Some even sell for over $100 per square foot if they are in excellent condition.
On the other hand, larger, older homes in the $150K-$200K price range--completely remodeled--are being listed and sold at between $75 and $85 per square foot. But a home like this is not a suitable “rent house” and there is still a lot of building going on in this price range. The law of supply and demand applies here.
A contributing factor is that because of escalating land prices and higher construction and development costs, almost no builders are making small “starter” homes any more. As these costs increase, the new starter homes are now larger than they were previously, but they also have significantly higher price tags. It is no longer possible to acquire a home like this for under $100K, whereas about 3-4 years ago there were several builders offering such new homes as low as $75K. But such homes are also great rent houses. With the increased competition from investors as well as the lack of construction of new homes at affordable prices, first-time and low-income home buyers are having a tougher time finding adequate housing.
Even rental prices are rising as a result. In 2002 an average newer duplex with 3 bedrooms on each side in east Springdale was listed and sold for about $120K or less, depending on condition. Rents for those duplexes were about $550-$575. Now rents have risen to between $600-$650 for those units, and those same duplexes are listed for sale at $175K or above and selling for a minimum of $165K. Even some 2-bedroom units are selling for $165K. And the new duplexes being built are listed at $200K or above. Supposedly these can be rented at $850 per side per month, but I wonder….
In any case, because home prices on the low end and multi-family properties are now so expensive due to increased demand and low supply, rents are also rising as units are sold.
Is affordable housing in NW Arkansas a thing of the past? I hope not.
When NW Arkansas topped the Millken Report a few years ago ahead of Las Vegas, the region catapulted to the top of the national radar in many respects. In the real estate market all of a sudden, in addition to local investors, there appeared investors from all over the country looking for “reasonable” investment property, beginning the upward exponential curve in prices for low-end homes and multi-family properties.
What happened was that many of the older existing homes, previously priced under $100K, began creeping upward in price as investors competed with first-time and low-income home buyers. Homes in that price range became smaller and shabbier as prices continued to rise significantly over the past couple of years. Now it is almost impossible to find a livable home for under $130K. Most homes in that price range either need work or are very small or both.
Sometimes these small fixer-uppers are even priced higher per square foot than nicer, larger homes. As recently as 3-4 years ago (before NW Arkansas was #1 according to the Millken Report), an older home in Springdale usually was listed for and sold for under $55 per square foot in the under $100K price range. Now these same homes—many in barely livable condition—are listed for and sell for over $85 per square foot. Some even sell for over $100 per square foot if they are in excellent condition.
On the other hand, larger, older homes in the $150K-$200K price range--completely remodeled--are being listed and sold at between $75 and $85 per square foot. But a home like this is not a suitable “rent house” and there is still a lot of building going on in this price range. The law of supply and demand applies here.
A contributing factor is that because of escalating land prices and higher construction and development costs, almost no builders are making small “starter” homes any more. As these costs increase, the new starter homes are now larger than they were previously, but they also have significantly higher price tags. It is no longer possible to acquire a home like this for under $100K, whereas about 3-4 years ago there were several builders offering such new homes as low as $75K. But such homes are also great rent houses. With the increased competition from investors as well as the lack of construction of new homes at affordable prices, first-time and low-income home buyers are having a tougher time finding adequate housing.
Even rental prices are rising as a result. In 2002 an average newer duplex with 3 bedrooms on each side in east Springdale was listed and sold for about $120K or less, depending on condition. Rents for those duplexes were about $550-$575. Now rents have risen to between $600-$650 for those units, and those same duplexes are listed for sale at $175K or above and selling for a minimum of $165K. Even some 2-bedroom units are selling for $165K. And the new duplexes being built are listed at $200K or above. Supposedly these can be rented at $850 per side per month, but I wonder….
In any case, because home prices on the low end and multi-family properties are now so expensive due to increased demand and low supply, rents are also rising as units are sold.
Is affordable housing in NW Arkansas a thing of the past? I hope not.
Expanded Region Slips to 8th Place in Milken Rating
Northwest Arkansas’ slip from No. 7 to No. 8 in the Milken Institute’s rating of the nation’s most vibrant economies for 2005 is a cause for celebration rather than concern, state economists say.
In the rankings released February 22, the Fayetteville-Springdale-Rogers Metropolitan Statistical Area (MSA), which includes Bentonville, ranked in the top 10 of the largest 200 cities for the third year in a row. The area made the No. 1 spot in 2003, then dropped to No. 7 in 2004. In 2002, the MSA ranked 23 rd in the top cities list.
The nonprofit Santa Monica, Calif.-based think tank ranks the nation’s metropolitan statistical areas for the best overall economies each year. Researchers base the rankings on several criteria, including job and wage and salary growth over the past five years. The institute helps business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity, according to its Web site.
Lorna Wallace, a Milken Institute research fellow and senior staff member, attributed the drop to No. 8 to the U. S. Census Bureau’s addition of Madison County and McDonald County, Mo., to the MSA. The two counties were not considered in the Milken study last year. The Milken Institute relies on the Census Bureau’s definition of metropolitan statistical areas for its study groupings.
“The Fayetteville-Springdale-Rogers MSA has a robust economy that outshines the rest of the state and most of the country,” Wallace said. “Its job growth rate by far exceeds the national pace.”
Wallace cited Bentonville-based Wal-Mart Stores Inc. ’s heavy influence on the regional economy for both positive and possible future negative factors. She also cited the presence of other national-level employers such as J. B. Hunt Transport Services Inc. and Tyson Foods Inc. and the University of Arkansas, a strong research university, as positives for the area.
The next-highest ranked larger metropolitan area in Arkansas was Little Rock-North Little Rock, ranked No. 94 overall and up from No. 106 in 2004. The city’s lowest sector ranking was in job growth, at No. 168 with 0. 24 percent. Fort Smith also ranked higher this year, moving up to No. 154 from No. 155 in 2004.
Three Arkansas MSAs were included in the Milken listing of the best 179 small cities. Hot Springs was ranked at No. 69. It was not ranked in 2004. Jonesboro ranked No. 99, down from No. 64 in 2004. Pine Bluff was ranked at No. 144, down from No. 94 in 2004.
Mitch Chandler, director of communications for the Arkansas Department of Economic Development, said Northwest Arkansas ’ ranking for the third year shows that the area’s growth is a proven trend. “This shows the phenomenal and consistent growth of the area.” he said.
Job and wage growth are the strongest contributors to the listing, said Jeff Collins, director of the Center for Business and Economic Research at the Sam M. Walton College of Business.
The Walton College is part of the University of Arkansas at Fayetteville. “Job and wage growth is a 15- to 20-year trend, not a one- to two-year trend,” Collins said. “Given that this measures the entire country on the same data, it gives a lot of validation to be listed in the top 10 from year to year.” He predicts that the region will continue to do well with those growth drivers in place. The region scored its highest ranking in the five-year wage and salary growth category, taking the No. 3 spot. It was ranked 14th in one-year wage and salary growth. The five-year job growth ranking was 7th and the one-year job growth was ranked 23 rd.
WEAKEST LINK:
The region’s lowest ranking — No. 154 — was in the area of technology output growth. Collins said the high-tech industry is one in which the state traditionally performs poorly. “Employment opportunities for Arkansas seem to be overly weighted to the lower educated and lower-paying jobs,” he said. And added that even the University of Arkansas ’ efforts to push technology-based business is not enough to push the state out of the lowest levels of technology development. “We still don’t attract a lot of research and development activity, which is the precursor to higher-wage industries,” Collins said. “The UA is still too small in this area. Larger universities can get concentrations of engineers and scientists who can cooperate and collaborate on research.”
HOUSING CONCERNS:
Milken’s Wallace also cited the increased housing values as a growth factor in the region, a positive indicator of the present economy but a possible future concern. “Housing rates and values are near the national level,” she said. “That may pose a risk going forward.” Unless other economic indexes also rise to the national level, increased interest rates or a slowing of the construction rate will influence the affordability of housing in the region. Collins said the housing component is a relatively small sector in the Milken Institute’s ranking data. “But there is some disconnect between supply and demand in housing,” he said. “While I have some concerns about segments in the market, there is still opportunity for growth and profit in housing after careful planning and consideration.” He said the national housing values really don’t contribute much to the local housing market. “The people who are moving in here and buying houses are already paying the national rates,” he said. “This doesn’t affect them.”
Condensed from: NWA News, Arkansas Democrat Gazette, February 23, 2006
In the rankings released February 22, the Fayetteville-Springdale-Rogers Metropolitan Statistical Area (MSA), which includes Bentonville, ranked in the top 10 of the largest 200 cities for the third year in a row. The area made the No. 1 spot in 2003, then dropped to No. 7 in 2004. In 2002, the MSA ranked 23 rd in the top cities list.
The nonprofit Santa Monica, Calif.-based think tank ranks the nation’s metropolitan statistical areas for the best overall economies each year. Researchers base the rankings on several criteria, including job and wage and salary growth over the past five years. The institute helps business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity, according to its Web site.
Lorna Wallace, a Milken Institute research fellow and senior staff member, attributed the drop to No. 8 to the U. S. Census Bureau’s addition of Madison County and McDonald County, Mo., to the MSA. The two counties were not considered in the Milken study last year. The Milken Institute relies on the Census Bureau’s definition of metropolitan statistical areas for its study groupings.
“The Fayetteville-Springdale-Rogers MSA has a robust economy that outshines the rest of the state and most of the country,” Wallace said. “Its job growth rate by far exceeds the national pace.”
Wallace cited Bentonville-based Wal-Mart Stores Inc. ’s heavy influence on the regional economy for both positive and possible future negative factors. She also cited the presence of other national-level employers such as J. B. Hunt Transport Services Inc. and Tyson Foods Inc. and the University of Arkansas, a strong research university, as positives for the area.
The next-highest ranked larger metropolitan area in Arkansas was Little Rock-North Little Rock, ranked No. 94 overall and up from No. 106 in 2004. The city’s lowest sector ranking was in job growth, at No. 168 with 0. 24 percent. Fort Smith also ranked higher this year, moving up to No. 154 from No. 155 in 2004.
Three Arkansas MSAs were included in the Milken listing of the best 179 small cities. Hot Springs was ranked at No. 69. It was not ranked in 2004. Jonesboro ranked No. 99, down from No. 64 in 2004. Pine Bluff was ranked at No. 144, down from No. 94 in 2004.
Mitch Chandler, director of communications for the Arkansas Department of Economic Development, said Northwest Arkansas ’ ranking for the third year shows that the area’s growth is a proven trend. “This shows the phenomenal and consistent growth of the area.” he said.
Job and wage growth are the strongest contributors to the listing, said Jeff Collins, director of the Center for Business and Economic Research at the Sam M. Walton College of Business.
The Walton College is part of the University of Arkansas at Fayetteville. “Job and wage growth is a 15- to 20-year trend, not a one- to two-year trend,” Collins said. “Given that this measures the entire country on the same data, it gives a lot of validation to be listed in the top 10 from year to year.” He predicts that the region will continue to do well with those growth drivers in place. The region scored its highest ranking in the five-year wage and salary growth category, taking the No. 3 spot. It was ranked 14th in one-year wage and salary growth. The five-year job growth ranking was 7th and the one-year job growth was ranked 23 rd.
WEAKEST LINK:
The region’s lowest ranking — No. 154 — was in the area of technology output growth. Collins said the high-tech industry is one in which the state traditionally performs poorly. “Employment opportunities for Arkansas seem to be overly weighted to the lower educated and lower-paying jobs,” he said. And added that even the University of Arkansas ’ efforts to push technology-based business is not enough to push the state out of the lowest levels of technology development. “We still don’t attract a lot of research and development activity, which is the precursor to higher-wage industries,” Collins said. “The UA is still too small in this area. Larger universities can get concentrations of engineers and scientists who can cooperate and collaborate on research.”
HOUSING CONCERNS:
Milken’s Wallace also cited the increased housing values as a growth factor in the region, a positive indicator of the present economy but a possible future concern. “Housing rates and values are near the national level,” she said. “That may pose a risk going forward.” Unless other economic indexes also rise to the national level, increased interest rates or a slowing of the construction rate will influence the affordability of housing in the region. Collins said the housing component is a relatively small sector in the Milken Institute’s ranking data. “But there is some disconnect between supply and demand in housing,” he said. “While I have some concerns about segments in the market, there is still opportunity for growth and profit in housing after careful planning and consideration.” He said the national housing values really don’t contribute much to the local housing market. “The people who are moving in here and buying houses are already paying the national rates,” he said. “This doesn’t affect them.”
Condensed from: NWA News, Arkansas Democrat Gazette, February 23, 2006
Academies Reinvent Local High Schools
Bentonville, which will soon be the largest high school in Arkansas with 3,000 students and a 600,000-square foot behemoth school, has decided to adopt the concept of the career academy to structure classes for students. This concept is important in an area striving to achieve excellence in public education. Many people move here from elsewhere and ask about the private schools. Our best schools are the public schools.
The academies come in two forms: wall-to-wall, where every student must enroll in an academy and there are many choices, and pocket academies, where enrollment is optional and there are fewer academies from which to choose. The Bentonville School District is following the wall-to-wall model for its academies. Ninth-graders will start in the freshmen academy, and will attend classes on the same floor and work with the same core group of 40 teachers. The program will focus on helping students decide which academy to join in their sophomore year. Some of the available disciplines are business, fine arts, mathematics, and human life sciences.
The career academy model for high schools has existed since 1969, but the concept wasn’t pioneered in Arkansas until 1998 when the Springdale School District opened a medical academy with 30 students. The trend spread in Northwest Arkansas, with Rogers and Fayetteville adopting the model. Administrators of at least 15 of the state’s biggest high schools are reinventing their schools through the academy approach, a trend educators say will continue. More than 1,500 career academies nationwide create schools within schools by centering students and instruction in focused, career-themed clusters. But they have not universally succeeded. The system floundered in Fayetteville, and it may be on the way out in Fort Smith.
There are pros and cons of academy models. Many principals and superintendents say that as a school grows larger, it becomes necessary to find ways to connect to individual students. Otherwise, it’s too easy for students to slip through the cracks. Large schools must search for ways to create smaller learning communities within the schools. The smaller learning communities allow students to take classes with the same group of peers and teachers. Proponents say career academies offer an alternative to the isolation that can accompany a mega-high school. Students become more interested in their courses and have greater success after graduation.
Opponents say career academies are too much like vocational programs, which traditionally do not receive a lot of community support. Some parents think the academies would not be good preparation for college. Other parents don’t want their kids to have to decide too early on a career path. However, a 2004 study by MDRC, a nonprofit, nonpartisan social policy organization based in New York, found that “Career academies are one of the few youth-focused interventions that have been found to improve the labor market prospects of young men.”
Administrators at Fayetteville High School introduced pocket academies in 2003, but then dropped the program two years later. Principal Randy Willison said only 80 students enrolled in an academy during the program’s second year. The academy needed a minimum of 120 participants to justify keeping it, Willison said.
Source www.nwanews.com February 12, 2006
The academies come in two forms: wall-to-wall, where every student must enroll in an academy and there are many choices, and pocket academies, where enrollment is optional and there are fewer academies from which to choose. The Bentonville School District is following the wall-to-wall model for its academies. Ninth-graders will start in the freshmen academy, and will attend classes on the same floor and work with the same core group of 40 teachers. The program will focus on helping students decide which academy to join in their sophomore year. Some of the available disciplines are business, fine arts, mathematics, and human life sciences.
The career academy model for high schools has existed since 1969, but the concept wasn’t pioneered in Arkansas until 1998 when the Springdale School District opened a medical academy with 30 students. The trend spread in Northwest Arkansas, with Rogers and Fayetteville adopting the model. Administrators of at least 15 of the state’s biggest high schools are reinventing their schools through the academy approach, a trend educators say will continue. More than 1,500 career academies nationwide create schools within schools by centering students and instruction in focused, career-themed clusters. But they have not universally succeeded. The system floundered in Fayetteville, and it may be on the way out in Fort Smith.
There are pros and cons of academy models. Many principals and superintendents say that as a school grows larger, it becomes necessary to find ways to connect to individual students. Otherwise, it’s too easy for students to slip through the cracks. Large schools must search for ways to create smaller learning communities within the schools. The smaller learning communities allow students to take classes with the same group of peers and teachers. Proponents say career academies offer an alternative to the isolation that can accompany a mega-high school. Students become more interested in their courses and have greater success after graduation.
Opponents say career academies are too much like vocational programs, which traditionally do not receive a lot of community support. Some parents think the academies would not be good preparation for college. Other parents don’t want their kids to have to decide too early on a career path. However, a 2004 study by MDRC, a nonprofit, nonpartisan social policy organization based in New York, found that “Career academies are one of the few youth-focused interventions that have been found to improve the labor market prospects of young men.”
Administrators at Fayetteville High School introduced pocket academies in 2003, but then dropped the program two years later. Principal Randy Willison said only 80 students enrolled in an academy during the program’s second year. The academy needed a minimum of 120 participants to justify keeping it, Willison said.
Source www.nwanews.com February 12, 2006
Arkansas Existing Home Sales up 30%
Arkansas continues to experience record growth in existing home sales, outpacing every other state in the country in the fourth quarter, according to a study by the National Association of Realtors. It was the second consecutive quarter that Arkansas’ rate was the best in the country. Arkansas has been among the top 10 states in sales of previously owned homes for each of the past five quarters.
Arkansas’ sales of previously owned homes were up almost 30 percent in the fourth quarter from a year earlier, the study showed. The third quarter of 2005 was also strong, with 32 percent growth. Nationally, existing home sales were flat in the fourth quarter, up just 0.3 percent.
In NW Arkansas, one explanation of these statistics could be the rapid increase in new-home prices, putting most of them beyond many people’s reach. Builders are no longer constructing small “starter” homes due to skyrocketing land costs and increased construction and development costs. As recently as about 3-4 years ago, the typical starter home was about 1000-1200 square feet and could be purchased for under $100K. The new starter home in NWA (particularly in the major towns of Fayetteville, Springdale, Rogers and Bentonville) is larger than that of the past, but prices are also significantly higher, starting at about $180K and going up from there. Salaries are not increasing at the same rate as home prices. Thus for people of modest means who don’t qualify for a new home of this type, the purchase of an existing home or paying rent are their only choices.
Source: Northwest Arkansas Times, February 17, 2006
Arkansas’ sales of previously owned homes were up almost 30 percent in the fourth quarter from a year earlier, the study showed. The third quarter of 2005 was also strong, with 32 percent growth. Nationally, existing home sales were flat in the fourth quarter, up just 0.3 percent.
In NW Arkansas, one explanation of these statistics could be the rapid increase in new-home prices, putting most of them beyond many people’s reach. Builders are no longer constructing small “starter” homes due to skyrocketing land costs and increased construction and development costs. As recently as about 3-4 years ago, the typical starter home was about 1000-1200 square feet and could be purchased for under $100K. The new starter home in NWA (particularly in the major towns of Fayetteville, Springdale, Rogers and Bentonville) is larger than that of the past, but prices are also significantly higher, starting at about $180K and going up from there. Salaries are not increasing at the same rate as home prices. Thus for people of modest means who don’t qualify for a new home of this type, the purchase of an existing home or paying rent are their only choices.
Source: Northwest Arkansas Times, February 17, 2006
Hispanic Parents Weigh in on New Rogers High School
The times, they are a-changing. Spanish-speaking parents gathered February 12 at St. Vincent de Paul Catholic Church for a question-and-answer session about a second high school scheduled to open in Rogers in August 2008. The meeting was the fifth held by the Rogers school district to gather input from the community and the first to be delivered entirely in Spanish.
The information meeting was scheduled to present to Hispanic parents the latest developments on facility plans for the new high school. Parents viewed a computer-generated model of what the new school will look like. According to an information sheet distributed at the meeting, the campus will grow from about 190,000 square feet to 325,000 square feet.
Feedback from the parents will be given to committees for consideration. The various committees will then report to the School Board, which will make final decisions about the new school.
To my knowledge, this is the first meeting of this type conducted totally in Spanish, and other school systems and public entities should follow suit. NW Arkansas’ Hispanic community continues to grow larger every day and is becoming an integral part of the fabric of NW Arkansas. The Rogers School system is to be commended for reaching out to the Spanish-speaking parents and listening to their concerns.
Source: Rogers Hometown News, February 15, 2006
The information meeting was scheduled to present to Hispanic parents the latest developments on facility plans for the new high school. Parents viewed a computer-generated model of what the new school will look like. According to an information sheet distributed at the meeting, the campus will grow from about 190,000 square feet to 325,000 square feet.
Feedback from the parents will be given to committees for consideration. The various committees will then report to the School Board, which will make final decisions about the new school.
To my knowledge, this is the first meeting of this type conducted totally in Spanish, and other school systems and public entities should follow suit. NW Arkansas’ Hispanic community continues to grow larger every day and is becoming an integral part of the fabric of NW Arkansas. The Rogers School system is to be commended for reaching out to the Spanish-speaking parents and listening to their concerns.
Source: Rogers Hometown News, February 15, 2006
Architects studying possibility of light rail in Northwest Arkansas
Studies through the University of Arkansas School of Architecture are being conducted to research how a light rail system might alter development in Northwest Arkansas. Teams have recently studied the Dallas Area Rapid Transit, the Fort Worth Transportation Authority, and the possibility of establishing a light rail system in the Washington, D. C. area.
A concept posed in the past for NW Arkansas would traverse 41.27 miles of rail with about 10 stations along the Interstate 540 corridor and a loop to the Northwest Arkansas Regional Airport. Buses could be used to tie more immediate areas to the rail, and high-occupancy lanes could be established along the interstate.
NW Arkansas needs something like this and needs it fast. Rush hour traffic is horrendous and daytime traffic is not too much better. Studies indicate that approximately 1000 additional people move to this area every month. Unfortunately, the infrastructure isn’t keeping up. Some sort of public transportation system is needed to alleviate the congestion on our roads.
Source: Northwest Arkansas Times, February 12, 2006
A concept posed in the past for NW Arkansas would traverse 41.27 miles of rail with about 10 stations along the Interstate 540 corridor and a loop to the Northwest Arkansas Regional Airport. Buses could be used to tie more immediate areas to the rail, and high-occupancy lanes could be established along the interstate.
NW Arkansas needs something like this and needs it fast. Rush hour traffic is horrendous and daytime traffic is not too much better. Studies indicate that approximately 1000 additional people move to this area every month. Unfortunately, the infrastructure isn’t keeping up. Some sort of public transportation system is needed to alleviate the congestion on our roads.
Source: Northwest Arkansas Times, February 12, 2006
New Books Tout Fayetteville as Great Place to Live
Career Press has recently published two books that add Fayetteville as one of the best places to live in America. "50 Fabulous Places to Raise Your Family" by Kathleen Shaput and "50 Fabulous Places to Retire in America" by Mary and Arthur Griffith, join a long line of such books and articles featured in Forbes, USA Today and others. Shaput and the Griffiths studied factors such as quality of life, safety, dining options, entertainment opportunities, medical facilities, accessibility and services for seniors, crime rate, education, public safety, taxes, real estate, and educational opportunities.
Listings for each community include information such as potential drawbacks, climate charts, tax rates, and real estate averages. Contacts for utility companies, newspapers, chambers of commerce, and a listing of activities and services for seniors are also included.
Fayetteville and NW Arkansas have long appeared on “best places to live” lists in various publications. However, with the increased urbanization, paralyzing traffic jams due to lagging infrastructure, and escalating home prices, the quality of life touted in these articles may be disappearing. Growth is great for the economy, but the increasing cost of living here (like sales taxes of over 9%) may make this area a “not so great” place to live in the near future.
Source: Northwest Arkansas Times, February 9, 2006
Listings for each community include information such as potential drawbacks, climate charts, tax rates, and real estate averages. Contacts for utility companies, newspapers, chambers of commerce, and a listing of activities and services for seniors are also included.
Fayetteville and NW Arkansas have long appeared on “best places to live” lists in various publications. However, with the increased urbanization, paralyzing traffic jams due to lagging infrastructure, and escalating home prices, the quality of life touted in these articles may be disappearing. Growth is great for the economy, but the increasing cost of living here (like sales taxes of over 9%) may make this area a “not so great” place to live in the near future.
Source: Northwest Arkansas Times, February 9, 2006
City limits and school district boundaries do not always match up
Homebuyers with school age children need to check which school district their new home is in. School boundaries were drawn decades ago, long before the cities expanded. When a city boundary changes, the existing school district boundaries remain as is. There are no plans to change the school district boundaries in the foreseeable future. Fayetteville, Springdale, Farmington, and Elkins are some of the local cities caught up in this situation.
To check which area a particular home is in, buyers should check the Fayetteville and Springdale School Maps or the Rogers and Bentonville School Lookup links at the right on this blog page. Another source of information would be the county assessor’s office or the school district offices.
Source Northwest Arkansas Times, February 11, 2006.
To check which area a particular home is in, buyers should check the Fayetteville and Springdale School Maps or the Rogers and Bentonville School Lookup links at the right on this blog page. Another source of information would be the county assessor’s office or the school district offices.
Source Northwest Arkansas Times, February 11, 2006.
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