Rising interest rates are taking a toll on single-family housing starts, Metroplan noted last month in its report on the Little Rock regional economy.
Construction “was unusually strong during 2021 and into early 2022,” the report said. “Once the federal prime rate rose above the 5-6 percent range, however, construction swooned. From a peak of 228 single-family starts in April of 2021, single-family activity has been at or below 100 units per month since August, although the total climbed a bit to 119 in January 2023.”
Metroplan is the planning agency for central Arkansas.