A South Central Round Up on Housing

Published by Anchorage Daily News 3.26.25

By Connie Yoshimura

Sometimes, I forget that by definition the Municipality of Anchorage includes Girdwood/Turnagain Arm, Chugiak/Peters Creek and Eagle River. Today, there are 169 residential properties for sale in the MOA of which Anchorage proper has only 129 , a rather dismal number compared to the cities of Wasilla with 181 and Palmer with 70. That total of 251 residential units is more than twice the number in Anchorage. But to make numbers even more complicated to analyze, the US census borough groups them all together as Southcentral Alaska, married by the Glenn Highway, soon to be slowing and rerouting tens of thousands of vehicles to repair the Knik River bridge- Southcentral’s only access to the Mat-Su Borough.

I live and work in a transactional environment where people buy and sell homes based upon changes in their life almost always as a result of marriage, birth, death, divorce and job change. More than a decade ago I served on the Planning and Zoning Commission when the ‘Bridge’ was before us. And unfortunately, I lacked the foresight to see the growth and need for more access to the Mat-Su land because Anchorage is landlocked by water, mountains, an important military base and a beloved Chugach State Park. Not all of today’s buyers want to live on an acre of land but those who do are flocking to the Mat-Su Valley, not just to Wasilla/Palmer but all the way to Willow and Talkeetna where there is a plethora of acre plus lots starting at $77,000 and according to Valley realtors increasing to $90,000 plus. A Valley 2400 square foot two story single family home with a triple car garage and maybe an RV pad can sell for $650,000 plus, depending on the amenity package. I can say with certainty it would be nearly impossible to find that size new home and lot for less than $950,000 in Anchorage. With AHFC’s 2025 announcement of a $10,000 credit for buyers who buy a new construction home which foundation was excavated after January 1, 2025, multiple Valley builders are dropping five to ten foundations at a time in various subdivisions.

Some of these homes are priced as low as $450,000—an unheard opportunity in Anchorage where there are only 24 homes for sale between $400,000 and $500,000. What the Mat-Su and MOA market both have in common is the need for more townhouse style low density multi family units. Whether a duplex, triplex or four-plex configuration; whether 20 or 24 feet wide with or without a double or even a single car garage, this type of housing is the future not only for Anchorage but the Mat-Su Valley as well. It is the first step on the housing ladder and both communities need to create that housing for not only first time homebuyers but also the aging boome r—demographically the two largest home buyers and sellers in the United States. On any given day, the Mat-Su has only one, maybe two condo/town- houses for sale. No wonder they have double or triple digit increases in value and will continue to do so as that market grows stronger. Anchorage on the other side of the mountains averages over a 100 condos for sale per month. But many are over 20 to 30 years old and buyers must take extra care to make sure there are no pending assessments or repairs in the near term. In fact, some condo developments lack adequate re- serves which makes their traditional financing impossible to obtain and can only be sold for cash.

My next article will take a deep dive into the Anchorage market and will appear on April 8, 2025.