Booming and becoming costly, Walmart's hometown is known for crafting cocktails, riding mountain bikes, and creating art.

• Bentonville, Arkansas, the hometown of Walmart, is experiencing rapid growth, featuring numerous amenities and higher prices typical of a larger city.
• According to Cushman & Wakefield/Sage Partners, the town has the highest number of cranes per capita among all U.S. cities, and prices are increasing for longtime residents as it expands.
• The largest construction project is Walmart's new headquarters, which will cover approximately 350 acres and include offices, a hotel, a food hall, and walking and cycling trails.

In 1971, when Gil Curren's family relocated to a dilapidated farmhouse in Bentonville, Arkansas, Walmart was only nine years old. Occasionally, the nearby creek would overflow, and cows would escape onto the dirt road in front of his residence.

The elderly retiree gazes outside his window and sees new homes instead of cattle. Cyclists, including mountain bikers, speed past. When he drives into town, he encounters unfamiliar buildings.

""Over the past 10 to 15 years, there has been an explosion of new construction every time he visits town," he stated."

To maintain its position as the largest retailer in the nation, Walmart is rapidly transforming into a tech-driven enterprise. In addition to selling groceries and household essentials, the company is now focusing on advertising and expanding its online marketplace.

As the company grows, its hometown is also transforming, with Bentonville now featuring many of the amenities commonly found in startup hubs such as Austin, Texas, or major cities like New York.

A members-only social club with a $255 monthly membership fee has gained popularity and now has a waiting list, while craft cocktails, hipster coffee shops, and chef-driven restaurants have proliferated throughout the city.

Walmart has contributed to the growth of its hometown by attracting talent and making the area more desirable for workers. However, the evolution of Bentonville has also led to an increase in housing costs and other issues related to affordability and displacement of residents, similar to other fast-growing cities.

In addition to Walmart, Fortune 500 companies such as Tyson Foods, J.B. Hunt, and Dole Food Company are also based in northwest Arkansas. Furthermore, many major Walmart vendors, including Procter & Gamble, Unilever, and Coca-Cola, have offices in the area to take advantage of having employees on the ground at any moment.

More million-dollar homes

The population of Bentonville has increased from 36,000 in 2010 to 58,000 in 2022 and is projected to reach 200,000 people by 2050, according to the U.S. Census Bureau. Additionally, the town has more cranes per capita than any other U.S. city, as stated by Cushman & Wakefield/Sage Partners. Several new developments are underway, including more restaurants, new hotels, and a medical school.

The largest construction project is Walmart's new headquarters, which will cover about 350 acres. The campus will feature biking and walking trails, a food hall, and other amenities. The fitness center and daycare have already opened, and other parts of the campus will be completed in phases, starting next year.

The Walmart Museum, situated in the first 5 & 10 store that Walmart founder Sam Walton named after himself, is undergoing renovations to give it a more modern look and feature tech-enabled displays, including a life-sized hologram of Walton that can answer visitors' questions.

The Walton family continues to shape Bentonville as it grows, with Steuart and Tom Walton bringing mountain bike trails and turning the town into a destination for the sport. They are also behind a real estate firm and a hospitality group that has opened high-end restaurants and built apartment complexes. Alice Walton, Sam Walton's daughter, founded Crystal Bridges, an American art museum that is free to visitors, and is now opening a medical school in Bentonville that plans to enroll its first class of future doctors next year.

The influx of newcomers in Bentonville has led to a rise in demand for million-dollar homes, making affordable housing a scarce commodity in the area.

Sotheby's Realtor Kristen Boozman assists clients in finding homes in the Bentonville area, particularly those who are moving from another city.

"Ten years ago, we had 14 homes that sold for over a million dollars," she said. "In 2023, we had 244."

According to Census Bureau data, Bentonville has a younger, wealthier, and more highly educated population than the rest of the country. Its median age is 32, seven years lower than the national average. Additionally, about 52% of its population holds a bachelor's degree or higher, compared to 36% nationally.

The median household income in Bentonville is significantly higher than both the state and national averages.

The median household income in the area increased by approximately 25% from 2017 to 2022, surpassing the national average growth rate.

Across the U.S., most Walmart employees, who primarily work in the company's stores and warehouses, would find it challenging to afford living in Bentonville, given that the median Walmart employee earns an annual salary of $27,642, as stated in the company's most recent proxy statement.

Managing a boomtown

Brandom Gengelbach, CEO of the Greater Bentonville Area Chamber of Commerce, stated that the region aims to learn from other fast-growing cities like Austin and Boise, Idaho, which have faced issues such as traffic congestion and rising housing costs, in order to avoid similar problems. Prior to his current position, he worked for a chamber in the Dallas-Fort Worth region.

"Although there may be unintended consequences of growth, the positive impacts on property values, amenities, and the education system make it worth considering."

Last month, Walmart announced that it would be relocating corporate employees from Dallas, Atlanta, and Toronto to Bentonville or other corporate hubs on the coasts, resulting in a new influx of residents to the small town that Sam Walton made famous.

The population of northwest Arkansas is growing at a rate of 36 people per day, thanks to the support of Walmart and other companies in the area, according to the Northwest Arkansas Council. By 2050, the region, which encompasses three counties, is projected to have a population of 1 million people.

A survey conducted by Walmart of new employees who relocated to northwest Arkansas revealed that the top selling point of moving to the region was the job. However, Donna Morris, Walmart's chief people officer, stated that new employees tend to warm up to Bentonville after visiting the area and their sentiment towards it grows more positive after they move there.

Morris stated that many candidates visit the area in person to search for homes, visit schools, and meet with local leaders when considering a relocation. Additionally, the company provides information about the area and connects newcomers with other employees who have recently moved, she added.

Drawing talent

Tracy Robinson never imagined she'd reside in Arkansas. The 36-year-old had previously lived in New York City, Washington, D.C., and Miami before relocating to Bentonville for a job at Walmart. She currently leads a team responsible for collaborating with manufacturers that produce baby products for Walmart's private-label brands.

Two years ago, Robinson relocated to Bentonville without having previously visited the town. She planned to remain for a year to enhance her resume by including Walmart as her work experience.

Upon her arrival, she relished the town's leisurely atmosphere and its metropolitan conveniences. Her furry companion, Stanley, also acclimated promptly - donning a bow tie while frolicking with squirrels and embarking on extended strolls amidst the sculptures at Crystal Bridges.

Miami-like dishes and prices were found in the restaurant and bar scene that surprised Robinson.

Chef Matthew Cooper leads one of the restaurants that helped launch Bentonville's upscale food scene as the executive chef of The Preacher's Son, a restaurant located in a converted former church in the downtown area. The restaurant, which has a speakeasy in its basement, is owned by Ropeswing Hospitality Group, founded by Sam Walton's grandsons, Tom and Steuart.

Cooper now owns a restaurant called Conifer, which offers dishes such as buffalo mushrooms with Gorgonzola mousse and lamb meatballs with wild rice, carrot, pistachio pesto, and goat cheese. Entrees on the current seasonal menu cost up to $60.

Business travelers and local residents have not given much resistance to the prices, according to Cooper.

"He stated that they were from areas where those prices were already commonplace, hence it hasn't been much of a struggle."

Affordability issues

Living in Bentonville has become a challenge for Conifer's restaurant workers due to rising rent and real estate costs. Despite his efforts to provide competitive wages and benefits, most employees do not reside in the town. Many commute from more affordable areas and some share living arrangements.

A unique project is set to rise in Bentonville, with a roughly $35 million development that includes 120 apartments and 40 single-family homes, many of which will be reserved for teachers and other employees of the Bentonville Schools.

The project, funded with a mix of donations and federal and state money, is expected to be completed in late 2025 and is overseen by the Excellerate Foundation, a local nonprofit.

Due to the district's difficulties in attracting and retaining teachers, some educators who were hired ultimately declined their positions after searching for suitable housing.

According to Jeff Webster, CEO of Excellerate Foundation, the bottom line is that it's not affordable, especially for those in the serving industry, including community service workers, city staff, and first responders like firefighters and police officers, as well as teachers.

School district employees who move into the development will pay $1,500 per month for their homes and receive a balance based on their monthly payments and portion of the home's equity appreciation when they depart, which they can use towards purchasing a permanent home.

The Walton Family Foundation supports affordable housing initiatives in Bentonville through funding and advocacy, while also collaborating with Excellerate on job training programs. However, the Foundation is not involved in the Bentonville housing project for teachers.

To prevent urban sprawl and encourage developers to build affordable housing, Webster led a task force for the Bentonville City Council that researched housing options in other booming cities.

Since 1971, Curren has resided in Bentonville. Currently, the city resembles cities like Austin or Houston, with heavier traffic. He laments the loss of knowing nearly everyone in town.

He stated that we won't encounter any familiar faces at the Walmart store.

Recently, But Curren and his wife, Sue, took a tour of downtown Bentonville to learn more about the new buildings, restaurants and shops after the proliferation of hundreds of miles of cycling paths in northwest Arkansas.

""Although I don't want anyone else to move here, I highly recommend our lifestyle here to others," Curren stated."

— CNBC's Jodi Gralnick and Shawn Baldwin contributed to this report.