The Municipality of Anchorage recently released its building permit summary through September 2016. As expected, it showed a continual slide in the construction of new housing units whether multi-family, duplex or single family. At the same time, according to the report, cost per unit has increased, an indication that new housing units are feeling the impact of the implementation of the new Title 21 regulations.
What is also interesting is the increase in both residential and commercial alterations. This increase is 25.65 percent greater for residential and 12.94 percent greater for commercial than for the same time last year, indicating that commercial tenants and home owners alike are not inclined to make an expensive move. Given the recent cold snap and the shut down of paving plants, not much is anticipated for new starts for the fourth quarter. Nor can we expect many new starts in the first quarter of 2017.
According to the statewide Multiple Listing Service, housing inventory is tightening up in Anchorage while at the same time, we’re seeing relocation buyers coming into the market. It’s going to be a frustrating next six months.