Anchorage Facing Severe Affordable Housing Crisis

For several years, Anchorage has been experiencing truly difficult economic conditions that are heavily impacting its population and real estate market, to the point that buying a property now is considered really unaffordable due to the high scarcity of housing.

As the largest city in the state of Alaska, Anchorage is home to a large number of families who are showing how this economic crisis and the urgency to own property are causing significant harm to their lives.

Currently, the city has a marked imbalance between supply and demand, as the increase in property prices is causing a severe housing crisis, making it increasingly unaffordable for most families, especially young families, who are seeking a place to live.

In a recent forum held in Anchorage, the affordable housing crisis and all the factors affecting the city’s real estate market were analyzed. During the discussion, it was determined that this is a crisis that can be improved if hard work is done on several aspects that the city can control, as high interest rates are decisions made by the Federal Reserve.

Among the aspects analyzed, and considering Anchorage’s infrastructure, it was concluded that it is necessary, and almost urgent, to rejuvenate the city since most properties are old. Therefore, to improve the crisis, it is important for the city and its property owners to agree on the best way to rehabilitate existing homes or build new homes on their land.

However, this is where the other aspect that exacerbates the housing crisis comes into play: the high construction costs that lead to the development of homes priced too high for current residents to afford. This situation is perhaps the most decisive point to address if the goal is to balance Anchorage’s real estate market and alleviate the housing crisis.

While it is important to generate new housing to meet the high demand and alleviate the crisis, it is crucial that builders or housing developers focus on developing properties that are affordable for all residents; in this way, they can appreciate a quicker return on investment and help improve the city’s economy.

Although it is true that the city has a high demand for housing and that new homes need to be built to improve supply, experts point out that it is important for these new developments to be basic housing designs that can accommodate the multiple families living in the city. One of the best ways to broadly address the housing crisis is through the construction of large condominiums or multifamily properties, experts say.

On the other hand, housing project builders state that while it is true that Anchorage needs more affordable housing supply to improve residents’ accessibility, they need city authorities to work hand in hand with them and provide more facilities to make construction more viable.

Among the strategies that official authorities need to work on to improve the construction of affordable housing is to improve or reduce the bureaucracy that builders face when they want to develop large properties; a clear example of this is the zoning of areas where multifamily housing construction is not allowed. If authorities improve housing construction regulations, it will encourage builders to increase construction.

Another significant strategy that the Anchorage administration can implement to incentivize more property developers to create large housing complexes is through the creation of a law that reduces sales taxes.

There are several strategies that the administration can address so that its residents can more feasibly access affordable housing and slightly reduce the current housing crisis in Anchorage.

Available foreclosure:

Anchorage: 120 homes available.

By Elías DaSilva | 25 de Noviembre de 2024