The “seller’s market” for residences in Eureka Springs poses some economic challenges and when the Mayor’s Task Force on Economic Development met last week, that issue dominated the discussion.
Realtor Kent Turner addressed the shortage of residences for sale in the city limits.
“We’re running out of inventory,” he said. “We just don’t have anything residential to sell.” He said listings that come onto the market sell quickly in the city.
Mayor Butch Berry said he hoped the high demand would stimulate some private building, and chair Sandy Martin noted the economic implications of the housing shortage. “Our focus is to grow the tax base,” she said. “It’s hard when we’re landlocked.”
Turner said the lack of residential property in Eureka Springs pushes people toward Holiday Island. “When we don’t have anything, they look for the next best thing,” he said.
Woodie Acord said the city still has lots suitable for building. “I wish we could get people to build on these nice lots around town,” he said. That led to a discussion of the shortage of quality contractors, and the possibility of attracting contractors to town from outside the immediate area.
Commercial property is not selling as briskly as residential. “Everyone thinks their commercial property is worth more than it is,” Turner said.
“There are five prime retail locations vacant downtown,” Martin said, and the others agreed that even decorating those vacant storefront windows would improve their appearance. By comparison, vacancies on Main Street fill more quickly.
Martin shared some new publications she had prepared. “Made in Eureka Springs” has a comprehensive guide to restaurants, nightlife, architecture, and outdoor activities. Turner said the publications fill a real need. “I’m going to put on the brokers’ Facebook page that these resources are available,” he said. The publications are available as hard copies, and are posted on eurekaspringsinc.org.
The Eureka Springs Chamber of Commerce also promotes economic development, but Berry said they have a more limited mission. “They’re devoted to tourism, but we need some alternative economic development that’s year-round,” he said.
Martin agreed, saying, “Some efforts need to go through the city rather than the Chamber.” She also emphasized the importance of working closely with the Chamber. “Our job is to the mayor and the city more than anyone else, but they’re invited to these meetings and they are welcome to use our materials.”
The group discussed what kind of retail businesses might fill an immediate need. Martin said the city may get a marijuana dispensary, and that might lead to related businesses. The city does not have an outlet for electronics. Martin also suggested indoor adventure businesses, and said the go-kart track will reopen this year, providing more activities for kids.
The group meets every other month, and the next meeting will be on March 20.