At Home in Arkansas: Paving a Path to Affordability & Homeownership
- Arkansas Impact Philanthropy
- Jun 1
- 4 min read
Updated: Jul 24
Housing affordability—rental and homeownership—is at a pressure point. The issue is particularly challenging for the ALICE (Asset Limited, Income Constrained, Employed) population. ALICE households work and earn above the federal poverty level (FPL) but struggle to cover basic living expenses, including housing. Arkansas’s housing opportunities look different depending on where your feet are planted in the state. As Arkansas’s population increases and housing prices rise, the need for affordable housing solutions becomes more urgent. Grantmaker efforts to advance strategic housing approaches are paramount. Arkansas Impact Philanthropy (AIP) continues to explore how philanthropy can partner for change and advance ALICE’s ability to afford housing in Arkansas. Join us as we explore the current housing crisis in Arkansas, the importance of philanthropy’s need to play a role in the solutions, and the pathways forward—zoning and policy reform, innovative housing solutions, and starter homes.
State of Housing in Arkansas
According to the National Low Income Housing Coalition (NLIHC), Arkansas currently faces a shortage of just over 53,000 affordable and available rental homes for extremely low-income renters. According to United for Alice’s 2025 The State of ALICE in Arkansas report, household costs in every county in Arkansas were well above FPL of $14,580 for a single adult and $30,000 for a family of four in 2023. Approximately 25% of Arkansas’s renters earn less than $30,000 a year, yet to afford a modest two-bedroom home, one would need at least $39,466 annually.
Meanwhile, migration surges. According to a report by the University of Arkansas Division of Agriculture (UADA), in a two-year period, 2020-2022, Arkansas saw a net migration of 42,809 individuals from across the United States and foreign-born residents. Northwest Arkansas has seen a population increase of 11.2% from 2022 to 2023, with Centerton in Benton County being a notable example. This rapid growth has led to rising home prices and a shrinking inventory of affordable housing, exacerbating financial strains on working-class families.
Philanthropic Efforts Helping to Alleviate Housing Issues
In Northwest Arkansas, Excellerate Foundation is making a powerful impact through its nonprofit development arm, Excellerate Housing. Targeting households between 30% and 80% AMI (area median income), our approach is both practical and deeply community-oriented: building long-term affordable rental housing through Low-Income Housing Tax Credit (LIHTC) developments and creating ownership pathways that empower families.
Excellerate’s HOMES program at McAuley Place is an innovative initiative that is available to Bentonville School District employees. Upon completion, families will be able to live in single-family cottages at an affordable $1,500/month and, after five years, have the opportunity to walk away with up to $50,000 in equity to use as a down payment on a permanent home.
It’s a model that emulates homeownership while helping participants prepare for buying their own home.
Currently, Excellerate Foundation is collaborating with philanthropic peers to co-fund some of the innovative housing work Excellerate Housing is leading. Once these developments are complete, they will serve as models that can be implemented in other communities. Excellerate is also active in AIP and Arkansas Funders Network, which both focus on housing issues that are impacting ALICE households.
Excellerate’s advice to funders is clear: think broadly and act boldly. Create and implement diversified strategies focusing on resources for residents, infrastructure increases, and policy change. All of these areas have to be addressed simultaneously in order for progress to be made.
Path Forward
Across Arkansas, several other philanthropic initiatives are already making a tangible impact in the state. Local nonprofits are actively forming partnerships with government agencies and developers, mobilizing resources, and making real change to address affordable housing shortages. These efforts include:
Building and Restoring Homes
Shaping Policy
Providing Financial Assistance (i.e. rental assistance, homebuyer education, low-interest loans)
Revitalizing Communities
To continue helping Arkansas’s housing crisis, philanthropy must:
Support Zoning Reform Advocacy—Zoning laws often block affordable housing development, intentionally or not. Philanthropy can support research and advocacy efforts to promote zoning changes that encourage diverse housing options.
Align efforts across funders, community leaders, and organizations—When collaborating and creating a shared purpose, stakeholders can identify systemic solutions, align resources, and accelerate impact built for long-term success.
Promote Homeownership through a Spectrum of Housing—Owning a home is a dream of many ALICE individuals. Encouraging the development of smaller, more affordable homes for first-time buyers can help ALICE households achieve stability. Philanthropy can support down payment assistance programs and builder incentives to increase the supply of attainable home ownership.
Arkansas’s housing crisis demands action. Rising costs and limited availability demand a multifaceted response with philanthropy playing a key role in funding solutions, advocating for policy changes, and supporting innovative housing models. Philanthropy is not the whole answer, but it is a powerful part of it. A home for ALICE families is more than four walls and a roof. It is security. It is dignity. By continuing to invest in innovative housing solutions, philanthropic organizations can help ensure that all Arkansans have access to affordable and sustainable housing options.
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