Why are Houses in Arkansas so Cheap?

August 10, 2022

Montreal, Canada - September 02, 2016: Living expensive homes in Canada.

With the Covid restrictions becoming less stringent, more people are looking to purchase a house in the state of Arkansas. However, with some of the lowest property taxes in the nation, many are left wondering how it is possible for homeowners to afford a place to live. There are a couple of reasons why homes for sale in Arkansas are so cheap. Here is a summary of what you need to know.

Fully Stocked With Utilities

The first and most vital question is whether or not the area has all the utilities. If not, then there is little to no point in buying a home in that location. You certainly won't be able to use all the appliances without powering up all the utilities first. It is also essential to ensure that the water is turned on and accessible. The same goes for the sewer system. You also need to check for damage around the outside of the home, as this could be an indication of termites or other pests that may be present. Most importantly, make sure that the air conditioning is turned on to ensure that the home is comfortable. These are all important considerations because if any of them are missing, it could be harmful or even dangerous to live in the house.

Zoned For Multiple Uses

Another factor that influences how much a house cost is whether or not it is zoned for multiple uses. For example, a house that is zoned for both residential and commercial use would be much more expensive than one that is only used for residential purposes. Therefore, it is important to determine what the zoning regulations are for the area. This will help establish how much extra you may have to pay in terms of property taxes and how much for a business license if you decide to rent out the space for income purposes. For example, if you decide to use the property for commercial purposes, you may have to pay a higher business tax.

Small Property Size

Another factor that influences how much a house cost is how big the property is. If you have a small property, it will cost you less to purchase because there will be less to pay for. Similarly, if the property is sizeable, it will cost you more because you have to pay more in terms of real estate taxes. A general rule of thumb is that the more floors you have, the more you will have to pay in terms of property taxes, maintenance, and insurance. In most cases, large homes are built on larger parcels of land, which results in the property being more valuable. This is why most people choose to rent out smaller homes because they cannot justify the high cost of insurance and maintenance.

Lower Incomes

Another important factor that influences how much a house cost is the income of the residents. If your incomes are lower, it will be more expensive because you will have to pay for additional education or training in how to be an efficient business owner. This is why it is crucial to keep in mind that you may need to register with the state in which you live and provide the state with copies of your tax returns. If you decide to live in Arkansas and decide to do business there, you will have to register with the state and pay annual fees.

As you can see, there are several reasons why homes for sale in Arkansas are so cheap. Nonetheless, as the Covid restrictions get less stringent and more people are looking to buy properties there, prices may start rising as more people look to move into the state and buy a home.


I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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