Still Looking for the ‘Missing Middle’?

Published in Anchorage Daily News
By Connie Yoshimura

Then, this Saturday and Sunday take a scenic fall drive north, turn off the Glenn and meander down the old Glenn road into Palmer from the back end past the airport and golf course. Stop for a late breakfast at Vagabond Blues which serves breakfast all day or enjoy the fresh baked goodies at Turkey Red. (My favorite are the rhubarb/blueberry tarts.)

And Welcome to the Mat-Su Parade of Homes! You have found Anchorage’s missing middle!

Over ten of the new construction single-family homes entered in the Mat Su Parade of homes are under $700,000. compared to only six homes at that price point in the Anchorage Parade which was last weekend. And there are ranches from 910 square feet to over 2,268. Every year the ranch floor plan has gained popularity not just with aging boomers but young families as well. Stairs take up a lot of square footage on the first and second floors that can be better used in living areas. Altogether there are seven ranches entered in the Mat-Su and only one in Anchorage at over 3,138 square feet. Not all of our older population is moving to Arizona or our millennials to Boise. The highest priced Mat-Su home is $981,1533 while Anchorage’s has over SIX one million dollar plus homes in the Parade. As an aside, there are 49 single-family homes listed for sale in the Anchorage MLS at one million or more.

The Valley has 4. The Valley is like a sigh of relief or a breath of fresh fall air. It is where Anchorage’s missing middle families chose to live. Three paved roads—Wasilla Fishhook, the Parks, and Bogard– connect Palmer to Wasilla. And along each one of these roads are new home communities. Two-story homes range from 2,000 square feet up to 2,600 on an acre plus lots with mountain views. On the Anchorage hillside, these homes would be over $1 million. In the valley, most of these homes would be under $700,000. The U.S. census borough considers the Mat-Su and the MOA as south-central Alaska. When I wonder, will Anchorage realize its neighbor to the north doesn’t just have more land but also the political ability and will to grow its community, including a modest sales tax? Its true there are 50,000 vehicles per day on Glenn with commuters and no one likes the drive, including me. But there’s something fresh about Wasilla and something nostalgic about walkable downtown Palmer. Anchorage is still the commercial and arts center of the state. But it also has a downtown filled with cannabis stores and a homeless population that makes it a city where its downtown residents question whether it’s a place they really want to LIVE WORK AND PLAY. I live downtown and I confess. I no longer walk alone.

However, neither the Mat-Su nor Anchorage’s housing stock has been immune from inflation. Anchorage’s housing inventory is old and getting older. According to the August issue of Alaska Economic Trends, 53% of Anchorage homes were built in the l970s and l980s. In the current decade, through 2022, Anchorage added just 120 new homes. Despite the loss of population and lack of new construction, prices for single-family homes continue to increase. In 2020 the average sales price was $396,000 YTD. Today, it is $512,605. An increase of 32.32% in less than four years.

Mat-Su is also no exception to inflation. In 2020 the average sales price was $328,370 and today its $478,385—- a 50.65% increase. In August 2024, Palmer’s average sales price was $516,033, the highest ever reported in MLS since June 2016.

Only one Anchorage Parade entry had a low-density multi-family development. It is the last phase of a previously developed Hultquist Home townhouse condo project with five attached units. The Mat-Su had none. Low-density multi-family development, whether attached units, pinwheels, or cottages will be for many in the future the first step on the housing ladder. Both Anchorage and the Mat-Su need to work towards that affordable housing goal.