Conway ranked eleventh on RentCafe’s list of cities where you can get the most out of your income and first in income-to-rent ratio.
According to the study, the median renter’s annual household income in Conway is $45,625, and monthly rent is $855.
Sunnyvale, California, ranked number one on the list, and renters have an annual income of $145,723 and an average monthly rent of $3,013.
The City of Conway’s Communications Coordinator Bobby Kelly said Conway Corp is one of the main factors that makes Conway so affordable.
Conway Corp is an independent agency that only services Conway’s city-owned electricity and other utilities.
“The utilities, the phone, the energy bills are lower, and it’s proven,” he said.
Kelly also said Faulkner County also has lower housing prices than Pulaski County,
“A lot of folks take what we have for granted here with Conway Corp,” he said. “A lot of folks will take it for granted, but then they’ll move elsewhere, and they realize that it simply costs more to live elsewhere.
“We’ve got a phenomenal health care system,” he said. “We have two great hospital systems.”
He said, according to Pulse of Conway, Faulkner County has a $540.8 million health care industry.
Kelly said, “It’s just difficult for me to really take a victory lap because there’s still folks out there struggling.”
“There’s a lot of reasons why Conway’s grown so much, and I think this is one of the factors — just general cost of living, and people look for that,” he said.
Jeremy Horpedahl, an associate professor of economics, said a factor that makes Conway affordable “is that the city has generally allowed the supply of housing to grow as the city’s population and demand has grown.”
“In many cities, there is a strong bias in favor of single-family homes,” he said. “But in Conway, there are always new apartments under construction — for example, the new University Lofts on College Avenue near UCA and the new apartments at Lewis Ranch near Sam’s Club. By allowing new apartments and houses to be built in the city, prices can stay at a reasonable level.”
He said when considering how much to spend on rent, most suggest not spending more than 30% of your disposable income.
Horpedahl said, “I think a better approach is to clearly identify your preferences in an apartment, such as how close to campus, what amenities it offers, like swimming pools or fitness centers, and how nice you want it to be — and then find the cheapest apartment that fits your preferences. That way, you aren’t overspending just because you feel like it fits in your budget.”
He said while Conway has good housing, it could still improve certain elements, such as transportation.
“Transportation is probably relatively expensive because it’s almost impossible to get around town without a car,” he said. “The new microtransit buses are a good addition, but I don’t think many people are using it yet.”
According to the Housing and Transportation Index, which cites Conway’s annual “regional typical” household income as $54,746, Conway citizens spend an average of 24% of their income on transportation, which is $13,061.
The index gave Conway a 0% in terms of “location-efficient neighborhoods,” which are “compact, close to jobs and services, with a variety of transportation choices, allow people to spend less time, energy and money on transportation.”
“If you are recognized as affordable, it could mean that new people will see that and move to your city,” Horpedahl said. “But as long as we allow housing supply to keep growing, I don’t see that as a downside — it’s much more of a benefit.”
He said he hopes Conway maintains its ranking on RentCafe’s list in the future.
“I expect Conway’s population will continue to grow, but that means we need to continue growing the housing supply to keep rents reasonable,” he said.