Why Millennials Are Choosing Northwest Arkansas

As Millennials continue to age, their role in shaping the economy has become increasingly significant. This generation, ranging in age from 28 to 43, represents about 22% of the U.S. population and plays a key role in driving economic trends.

However, not every region offers the same opportunities for economic growth. Some areas provide a better foundation for success than others. So, how does Northwest Arkansas, a thriving hub of business and innovation, stack up against the nation’s leading cities?

 

Why Millennials Love NWA

Commercial Cafe, a trusted resource for real estate professionals, ranks Northwest Arkansas as the 9th best place for Millennials to live and work. With its affordable cost of living, competitive wages, and a strong economy powered by three Fortune 500 companies, NWA stands out as a top contender. You can read the entire Commercial Cafe article here.

Wondering how NWA measures up against cities like Austin, Denver, Nashville, and San Jose? Let’s dive in and find out!

 

How We Compare Cities

Our Move Meter Tool provides an easy way to compare two cities, giving you a clear view of what each has to offer. The score is based on four key factors:

• Housing Affordability
  This includes home price, property tax, home appreciation rate, and price per square foot.
• Quality of Life
  This includes education, healthcare and fitness, weather grade, and air quality index.
• Job Market Strength
  This includes the unemployment rate, recent job growth, future job growth index, and median household income.
• Living Affordability
  This includes state income tax, utilities, food and groceries, and sales tax.

The Move Meter pulls data from over 40,000 cities and is updated quarterly. Scores range from 50 (lowest) to 100 (highest), allowing you to compare cities easily. This Coldwell Banker exclusive tool, Move Meter, is an amazing tool designed to provide you with valuable insights to help make an informed decision.

Austin, Texas

When it comes to destinations for young professionals, Austin often takes the spotlight. Home to over 60 major company headquarters, including Dell, Tesla, Kendra Scott, and Whole Foods, it’s no wonder Austin claims the top spot in Commercial Cafe’s ranking of cities for Millennials.

Austin’s rapid growth and vibrant culture, rooted in the countercultural movements of the ’60s, make it a hub for creativity and opportunity. With 673,000 Millennials calling it home—the highest per capita in the country—it’s a thriving city for both career development and enjoying a unique cultural vibe.

But for those who love the great outdoors, Northwest Arkansas (NWA) emerges as an equally compelling choice. With over 500 miles of biking and hiking trails and plans for further expansion, NWA pairs natural beauty with a strong sense of community, making it an outdoor enthusiast’s dream.

Let’s compare the two cities in terms of affordability, quality of life, job opportunities, and cost of living to see how they stack up.

Housing Affordability

• Home Prices: NWA’s average home price is $351K, significantly more affordable than Austin’s $559.3K.
• Property Taxes: NWA offers a lower property tax rate at 0.62%.
• Home Appreciation: Homes in NWA appreciate at a much higher rate (11.1%) compared to Austin (-8.2%).
• Price per Square Foot: Homes in NWA cost $91.18 less per square foot, averaging $167.07.

Quality of Life

• Education: Austin ranks slightly higher with a score of 94, compared to NWA’s 89.
• Healthcare: Austin outperforms NWA with a healthcare score of 97 compared to 72.
• Weather: NWA edges out Austin with a weather score of 68 versus 66.
• Air Quality: NWA leads with an air quality score of 75, significantly higher than Austin’s 67.

Job Market

• Unemployment Rate: NWA boasts a lower unemployment rate at 2.2% compared to Austin’s 2.9%.
• Job Growth: Recent job growth in NWA is higher (2.09%) than in Austin (1.65%).
• Future Growth: NWA leads with a future job growth score of 92, while Austin scores 87.
• Median Income: Austin takes the lead here, with a median income of $86.56K compared to NWA’s $56.88K.

Living Costs

• State Income Tax: Texas has no state income tax, whereas Arkansas’ rate is 4.9%.
• Utilities and Groceries: Utilities and groceries are more affordable in NWA.
• Sales Tax: Austin has a lower sales tax (8.25%) compared to NWA’s 10.75%.

The Bottom Line

Northwest Arkansas presents a strong alternative for Millennials considering a move. With affordable housing, lower taxes, and a thriving job market, NWA is a great option for those seeking a balanced lifestyle. While Austin may lead in healthcare and education, NWA excels in quality of life and cost of living.

If you’re a young professional drawn to Austin’s charm but want a more affordable lifestyle, Northwest Arkansas could be your ideal destination!

 

Denver, Colorado

Denver boasts the highest concentration of Millennials in the West, along with impressive educational attainment—many Millennials here hold bachelor’s degrees, reflecting the city’s emphasis on learning and growth.

Known for its relaxed lifestyle, outdoor adventures, and stunning snow-capped mountains, Denver offers a vibe similar to Northwest Arkansas, especially when it comes to its love for nature and recreation.

As the home of major companies like Coors Brewing Company, Einstein Bros. Bagels, Frontier Airlines, and Quiznos, Denver is a hub for business and innovation. But how does it compare to NWA? The Move Meter gives this matchup a score of 78, showing a closer similarity than NWA’s comparison with Austin. Let’s break it down:

Housing Affordability

Home Prices: NWA’s average home price is $351K, significantly more affordable than Denver’s $578.1K.
Property Taxes: Denver has a lower property tax rate at 0.45%, compared to NWA’s 0.62%.
Home Appreciation: NWA homes appreciate at 3.3%, outperforming Denver’s rate of 0.8%.
Price per Square Foot: NWA homes are $200.34 cheaper per square foot, averaging $167.07 compared to Denver’s $367.41.

Quality of Life

Education: Denver ranks higher with a score of 94, compared to NWA’s 89.
Healthcare: Denver outperforms NWA with a healthcare score of 81, versus NWA’s 72.
Weather: NWA scores better in weather, with 68 compared to Denver’s 61.
Air Quality: NWA has a significant lead, with an air quality score of 75, compared to Denver’s 51.
Commute & Transit: NWA ranks higher in commute and transit, scoring 59 compared to Denver’s 44.
Accessibility: NWA is more accessible, with a score of 77 versus Denver’s 70.
Culture & Entertainment: NWA slightly edges out Denver, with a score of 69 compared to Denver’s 66.

Job Market

Unemployment Rate: NWA boasts a lower unemployment rate at 2.2%, compared to Denver’s 3.4%.
Job Growth: Recent job growth in NWA is stronger at 2.09%, compared to Denver’s 0.15%.
Future Growth: NWA leads significantly in future job growth, scoring 92 versus Denver’s 74.
Median Income: Denver has a higher median income at $85.85K, compared to NWA’s $56.88K.

Living Costs

State Income Tax: Denver’s state income tax is slightly lower at 4.4%, compared to Arkansas’ 4.9%.
Utilities: Denver utilities are higher, scoring 36, compared to NWA’s 32.
Groceries: Costs for food and groceries are equal, with both cities scoring 46.
Sales Tax: Denver has a lower sales tax rate at 8.81%, compared to NWA’s 10.75%.
Transportation: Transportation costs are much higher in Denver, with a score of 70 compared to NWA’s 48.

Summary

Northwest Arkansas offers a more affordable lifestyle with advantages in housing costs, job market growth, and air quality. While Denver excels in education, healthcare, and median income, NWA’s affordability and outdoor-friendly community make it an attractive alternative for those seeking a fresh start in a vibrant, nature-rich area.

 

Nashville, Tennessee

Nashville, the heart of country music, is renowned for landmarks like the Country Music Hall of Fame and the Grand Ole Opry. But beyond the music, the city offers vibrant food scenes, a flourishing art community, great education, and classic southern hospitality.

Culturally, Nashville and Northwest Arkansas share similarities, especially in their food and art scenes. So, how do these two cities compare?

Housing Affordability

Home Prices: Nashville’s average home price is $424.2K, compared to NWA’s $351K.
Property Taxes: Both cities have a property tax rate of 0.62%.
Home Appreciation: NWA has a higher home appreciation rate of 3.3%, while Nashville’s is -0.2%.
Price per Square Foot: The price per square foot in Nashville is $199.58, while in NWA, it’s $167.07.

Quality of Life

Education: Nashville scores higher with a rating of 95, compared to NWA’s 89.
Healthcare and Fitness: Nashville’s healthcare and fitness score is 100, while NWA’s is 72.
Weather: Both cities share the same weather score of 68.
Air Quality: NWA has a higher air quality score of 75, compared to Nashville’s 65.
Commute & Transit: NWA has the edge here with a score of 59, while Nashville scores 54.
Accessibility: NWA also ranks higher with a score of 77, compared to Nashville’s 67.
Culture & Entertainment: NWA leads with a score of 69, while Nashville’s score is 53.

Job Market

Unemployment Rate: NWA has a lower unemployment rate at 2.2%, while Nashville’s rate is 2.8%.
Recent Job Growth: Nashville has a slightly higher job growth rate at 2.36%, compared to NWA’s 2.09%.
Future Job Growth: NWA outperforms with a future job growth score of 92, while Nashville’s is 78.
Median Household Income: Nashville’s median household income is $71.33K, significantly higher than NWA’s $56.88K.

Living Costs

State Income Tax: Tennessee has no state income tax, while Arkansas has a rate of 4.9%.
Utilities: Nashville has slightly higher utility costs, with a score of 35 compared to NWA’s 32.
Groceries: Both cities have similar grocery costs, with Nashville scoring 45 and NWA 46.
Sales Tax: Arkansas has a higher sales tax rate of 10.75%, compared to Tennessee’s 9.25%.
Transportation: Transportation costs are higher in Nashville, with a score of 62 compared to NWA’s 48.

Summary

While Nashville shines with its higher income, healthcare, and vibrant cultural scene, Northwest Arkansas stands out with lower housing costs, higher home appreciation, and a stronger future job growth potential. Whether you’re seeking affordability or access to higher income and healthcare, NWA offers a more balanced and promising lifestyle for long-term growth.

 

San Jose, California

San Jose, the capital of Silicon Valley, is a global leader in technology, home to renowned companies like PayPal, McAfee, and Zoom. With its proximity to Cupertino and Apple’s headquarters, it’s easy to understand why San Jose is considered a tech powerhouse.

However, Northwest Arkansas (NWA) offers a compelling alternative, providing a combination of affordability, quality of life, and growth opportunities that make it an appealing choice for many.

Housing Affordability

Home Prices: San Jose’s average home price of $1.34M is nearly a million dollars more than NWA’s $351K.
Property Taxes: San Jose’s property tax rate is 0.75%, higher than NWA’s 0.62%.
Home Appreciation: Homes in San Jose appreciate at 6.6%, compared to NWA’s 3.3%.
Price per Square Foot: The cost per square foot is significantly higher in San Jose, at $824.47, compared to NWA’s $167.07.

Quality of Life

Education: San Jose ranks slightly higher with a score of 92, compared to NWA’s 89.
Healthcare and Fitness: San Jose scores a perfect 100 in healthcare and fitness, while NWA scores 72.
Weather: San Jose enjoys more favorable weather with a score of 84, compared to NWA’s 68.
Air Quality: NWA ranks higher with an air quality score of 75, while San Jose’s score is 65.
Accessibility: NWA also has a higher accessibility score of 77, compared to San Jose’s 67.
Culture & Entertainment: NWA leads with a score of 69, compared to San Jose’s 52.

Job Market

Unemployment Rate: San Jose’s unemployment rate is 4%, compared to NWA’s 2.2%.
Recent Job Growth: San Jose’s job growth is declining at -1.13%, while NWA’s recent job growth stands at 2.09%.
Future Job Growth: NWA’s future job growth index is 92, much higher than San Jose’s 66.
Median Household Income: San Jose’s median household income is $136.01K, significantly higher than NWA’s $56.88K.

Living Affordability

State Income Tax: California has a higher state income tax rate of 9.3%, compared to Arkansas’ 4.9%.
Utilities: Utilities are similar in both cities, with San Jose’s slightly higher than NWA’s 32.
Food and Groceries: Groceries are much more expensive in San Jose, with a score of 72, compared to NWA’s 46.
Sales Tax: NWA’s sales tax is slightly higher at 10.75%, while San Jose’s is 9.38%.
Transportation: San Jose has excellent transportation infrastructure, scoring 100, compared to NWA’s 48.

Summary

While San Jose is the heart of Silicon Valley and a tech hub, Northwest Arkansas offers a more affordable and balanced lifestyle. With home prices nearly $1 million less than San Jose, NWA provides a financial advantage that’s hard to overlook.

California’s high cost of living is a barrier for many, making NWA’s budget-friendly lifestyle an attractive option. For those in the tech industry, San Jose may remain the ideal choice. However, for those looking for a high-quality lifestyle without the steep cost of living, NWA offers a compelling alternative.

 

Conclusion

When comparing Millennial hotspots, it’s clear that Northwest Arkansas is rapidly becoming a top destination for those seeking both career growth and a balanced lifestyle. With ample job opportunities and affordable living, NWA offers a community-focused alternative to larger cities.

While big metros excel in areas like education and healthcare, NWA’s appeal lies in its growth potential, booming job market, and affordability. The region also offers outdoor adventures, scenic beauty, and a vibrant arts scene, providing the best of both worlds.

NWA is becoming a hidden gem, offering Millennials the perfect mix of career opportunities and a well-rounded lifestyle.

Ready to explore your options in Northwest Arkansas? Connect with one of our skilled agents on our Agent Page, or begin your search today with our Home Search Page to find the ideal property for you.