Date of Graduation

5-2025

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Economics

Advisor/Mentor

Yeager, Timothy J.

Abstract

Homeownership is a cornerstone of the American Dream. It is linked to numerous socioeconomic benefits such as social cohesion, civic engagement, imbalance in opportunities, education, and public health. However, in recent years, housing affordability across the nation and in Northwest Arkansas has become challenging.

Part I of this thesis explains the importance of homeownership nationally and the deteriorating conditions of first-time homebuyers. It explains the key drivers of housing affordability over time, and it explains the connection between zoning and affordability.

Part II focuses on the housing market in Northwest Arkansas (NWA). I forecast the NWA housing demand, which highlights the need for sustained housing development of 6,845 units per year to meet the projected population growth through 2050. The thesis concludes that addressing affordability requires targeted policies beyond general supply increases. Recommended policies include broad upzoning to enable “Missing Middle” housing, density bonuses linked to affordable for-sale unit creation, and establishing Community Land Trusts to ensure long-term affordability and broaden access to homeownership.

Keywords

Housing Affordability; First-Time Homebuyers; Northwest Arkansas; Homeownership Equity; Regional Housing Markets; Land Use and Zoning Policy

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