OPINION: Ignore the national housing headlines. Alaska is unique.

Alaskans aren’t like residents of the Lower 48. Our housing market isn’t either. So, when you read headlines about national housing trends, they don’t tell the story of what’s happening in Alaska.

Nationwide, economists predict the U.S. could be headed toward a recession in 2023. During an economic downturn, typically fewer people buy homes. Mortgage interest rates also rose in recent months. Traditionally, these factors cool off the housing market. But Alaska doesn’t follow national trends. Historically, Alaska’s housing and homebuilding markets are significantly off-cycle from the Lower 48.

Between 1991 and 1998, homebuilding in the U.S. grew by 50% while in Alaska it grew by 221%, according to the National Association of Home Builders, or NAHB. In 2014, homebuilding in Alaska grew significantly faster than in most areas around the country. Yet between 2018 and 2020, fewer homes were popping up in Alaska than in most areas in the U.S.

The lack of new homes is one of the biggest predictors of what to expect in the housing market. Alaska is currently underbuilt, meaning it has too few homes for its residents. Anchorage has a deficit of 740 homes for sale, according to November 2022 estimates from NAHB.

People always need a place to live. A recession doesn’t change that, which is why experts predict Alaska’s housing market will remain strong. There are additional contributing factors. Mortgage interest rates have gone up from recent historic lows, but interest rates are still within the normal range. The Anchorage Assembly recently made changes to its attached dwelling unit regulations.

ADUs add more housing to the same property. These changes will allow homeowners to add much-needed housing despite a shortage of available land.

Owning a home is a smart investment. Alaska’s homeowners enjoy tax benefits, they’re building equity and get to belong to a community. Don’t let national market trends determine your decisions. Alaska’s housing market remains strong and now is a great time to become a homeowner.

Nikki Giordano is the CEO of the Anchorage Home Builders Association. For more than 10 years, Giordano has been working with industry leaders and advocating for attainable housing in our community.

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