From my perspective after watching this market for decades, Little Rock has been a city where the burden of home prices relative to income has not fluctuated significantly.

Currently, the median home price according to Zillow is around $230,000, which has increased compared to pre-pandemic levels but still falls short of the national average.

Calculating under standard conditions, with a 20% down payment, the loan principal would be about $184,000, and the monthly principal and interest payment at a fixed rate of 6.75% for 30 years would be approximately $1,193. Adding property taxes (assuming 1.0% annually) of about $230 per month and insurance costs of about $150 per month, the total housing cost would be around $1,573 per month.

Applying the DTI 28% rule, the required monthly income would be about $5,619, which translates to an annual income of approximately $67,432. Considering that the median household income in Arkansas is about $55,000 according to census.gov, it appears that purchasing an average home in Little Rock requires an income somewhat higher than the state median.

Data suggests that this gap has widened compared to a generation ago, as the rate of increase in home prices has outpaced wage growth in recent years.

For dual-income households, the situation changes. If two people earn between $33,000 and $35,000 each, they can surpass the threshold, and looking at the actual income structure of Korean households that have settled in the area for a long time, it seems to be a reachable level.

• Median home price: approximately $230,000
• Total monthly housing cost: approximately $1,573
• Required annual income: approximately $67,432

Compared to nearby Memphis or Jackson, Little Rock is relatively stable. After observing for a long time, this area has experienced a gradual upward trend rather than sharp price spikes, and this trend appears to continue in recent data.

In conclusion, Little Rock is assessed as a market that can be approached without difficulty if one considers an annual income around $65,000. However, given that interest rates are still hovering in the high 6% range, it may be worth considering a strategy of saving a bit more for a down payment to reduce loan burdens rather than rushing into a purchase.