The Fort Smith metro area experienced an extraordinary surge in building permit values as the year 2025 began, marking a substantial recovery from the prior year’s downturn. Following a significant slump in 2024, the building activity in Fort Smith, Greenwood, and Van Buren saw a major resurgence. In January 2025, the combined value of building permits issued in these three cities soared to an impressive $33.31 million. This figure represents a remarkable increase of 160% compared to the $12.8 million reported in January 2024 and an even more staggering rise of 251% from the $9.49 million in permits issued in December 2024. This notable improvement highlights the dynamic and rapidly changing landscape of construction and development in the Fort Smith metro area.
Fort Smith Leads the Surge
Fort Smith played a pivotal role in the dramatic increase in building permits, with the city issuing 181 permits valued at $30.83 million in January 2025. This represents a substantial 252% increase from the $8.77 million value of 159 permits issued in December and a 232% rise from the $9.28 million value of 138 permits issued in January 2024. Among these, seven permits were dedicated to new residential construction, valued at $2.86 million. While this amount showed a slight decline of 1.7% from December’s $2.91 million for 14 permits, it also represented a 3.9% increase from the $2.75 million value of eight permits issued in January 2024.
Single-family homes and new duplex construction significantly bolstered Fort Smith’s building activity. In January, the issuance of 28 new duplex construction permits, valued at $9.98 million, marked a significant uptick. Several projects were concentrated on Olivia and Catherine streets, situated behind the Links at Fort Smith at 5100 S. Zero St. It’s notable that the entire year of 2024 saw only 48 new duplex construction permits issued, valued at $17.07 million. This comparison underscores January’s impressive and renewed construction vigor, indicating a thriving real estate market within the city.
Commercial Construction Boom
Commercial construction activity also played a crucial role in the overall increase in building permits. January’s new commercial construction permits included several high-value projects, such as a $450,000 new guard shack at Mars Petcare, a $1.1 million new Starbucks, and a $10 million new, 36,000-square-foot Hyundai car dealership for Crain Hyundai. When compared to January 2024, which only saw one new commercial project valued at $165,000, the commercial construction value in January 2025 was almost 70 times greater than the previous year. This remarkable growth highlighted the area’s potential for future commercial development and investment opportunities. Interestingly, no new commercial projects were permitted in December 2024, making January’s surge even more significant.
The substantial increase in commercial construction is indicative of a stronger economic outlook for the Fort Smith metro area. These new projects appear to signal renewed confidence among commercial developers and investors, fostering further growth within the sector. Businesses, large and small, are recognizing the potential for expansion and profitability in the region, contributing to a vibrant commercial landscape. The robust commercial activity in January 2025 sets a promising tone for the remainder of the year, painting an optimistic picture for the local economy and job market.
Van Buren’s Growth
Van Buren, the region’s second-largest city, also experienced noteworthy growth in building permit values in January 2025. The city reported 68 permits valued at $1.31 million, reflecting a substantial increase of 172% from December’s $483,900 for 73 permits. Additionally, this figure marked a 35.7% rise from January last year’s $969,500 for 58 projects. The issuance of seven residential construction permits, valued at $974,000, was particularly significant. This valuation marked a remarkable 400% increase from December’s $194,900 for eight residential projects and an 85.5% rise from January 2024’s $525,000 for three projects.
However, Van Buren’s commercial construction experienced a downturn in comparison to residential construction trends. The city issued only one commercial construction permit valued at $31,500, representing a 78.9% decrease from December’s value of three commercial permits and a 93.6% decline from January 2024’s $426,500 for two permits. This divergence between residential and commercial trends could indicate a shifting focus on enhancing residential infrastructure within the city, promoting population growth and housing development.
Greenwood’s Dramatic Increase
Greenwood witnessed a dramatic increase in building permit values in January 2025, further contributing to the region’s overall construction surge. The city issued 18 permits with a combined value of $1.16 million, which marked a tremendous 383% increase from December’s $240,289 for nine permits. Despite this notable uptick, the January figure represented a 54.5% decrease from January 2024’s $2.55 million for 19 permits. This fluctuation underscores Greenwood’s volatile construction activity, reflecting significant month-to-month and year-to-year variations.
The substantial increase from December can be attributed to renewed interest in the city’s construction prospects, potentially driven by changing economic conditions, new development projects, or shifts in population dynamics. The year-over-year decrease, however, suggests a broader trend of fluctuating construction activity in Greenwood, which may require further analysis to understand underlying factors. Nonetheless, the city’s January performance aligns with the overall regional trend of recovery and growth.
Historical Context and Trends
At the start of 2025, the Fort Smith metro area witnessed a dramatic increase in building permit values, signaling a robust recovery from the previous year’s slump. In 2024, Fort Smith, Greenwood, and Van Buren experienced a significant downturn in building activities. However, January 2025 saw a turnaround. The combined value of building permits issued in these three cities reached an impressive $33.31 million. This amount signifies a remarkable rise of 160% compared to the $12.8 million reported in January 2024. Furthermore, it represents an astonishing 251% increase from the $9.49 million in permits issued in December 2024. This impressive growth underscores the vibrant and rapidly evolving nature of construction and development in the Fort Smith metro area. The sharp rise in permit values is indicative of renewed confidence and investment potential in the region, heralding a period of economic revitalization and bustling building activity.
