Alaskanomics's Blog: Alaska Housing Market Remains Steady
A recent article in Alaska Economic Trends outlines the state of the housing market in Alaska. While the recession has slowed growth in the housing market, it remains healthy. Fewer homes are being built, but sale prices are stable, rising 2.6 percent from 2015 to 2016. Like many things in Alaska, homes are more expensive than in the rest of the U.S., averaging 40 percent more for a single-family home.
Experts note that the fact that prices haven’t dropped during the first year of the recession in Alaska is a sign of a relatively stable market, even with the job losses seen throughout the state. This is in direct contrast to the housing bust that was seen during the recession in the 1980s in Alaska.
Another piece of the market that has remained relatively stable is affordability. This is measured by the number of average paychecks required to afford the average single-family home. It’s determined by area’s wages, sales prices and interest rates, which continue to be near historic lows. In 2015 and 2016, affordability was the same with 1.24 average paychecks needed to afford a typical home. While wages have remained flat, low interest rates have offset the slight increase in prices to remain in at the same level of affordability. Purchasing a home in Fairbanks, Juneau and Kodiak became more affordable, while it because less affordable in Anchorage, Mat-Su, Kenai and Ketchikan.
For more information on the Housing Market or Alaska Economic Trends, visit the State of Alaska's Department of Labor.