We’re All Together Now in South Central Alaska

The Mat-Su Borough and the Municipality of Anchorage includes 26,314 square miles of land with a population of 401,636 which is 54.2% of Alaska’s population. With all that land and small population, there should be more than enough room for a home, large or small, for every citizen. So why do we have a housing shortage? One reason is the housing market has been controlled by the now ‘aging’ baby boomer population. Many of them built homes in the l980’s and l990’s with the larger the better idea. Now most of those boomers will, over the next five years, downsize to a ranch style home or two-stories with a primary suite on the first floor in order to save their knees. But instead of living square footage, the boomer now wants not just a triple car garage which became popular in the early l990’s but a minimum of 1,200 square feet for all their recreational equipment, motor homes, boats, snow machines, woodworking space, gyms and anything else you can think of. And above that oversized garage is a mezzanine or rec room!

Anchorage had over 42 $1 million plus homes built over the last 17 months. There is no doubt that trend will continue for the next three years as the boomers age in and out of the market. But their big surprise is that downsizing to a brand new home will cost at least $400 a square foot. But since 35% of all boomers own their home free and clear they have plenty of equity to pursue their retirement dream home in Girdwood, Big Lake, Willow, Homer—all hotspots for the well to do retirees. What we don’t want to occur is for them to opt out of Alaska for Scottsdale or Boise!

But for those buyers, whether boomers or millennials, looking in the $500,000 to $700,000 Palmer and Wasilla will need to be their choice for the foreseeable future. Borough acre and full acre lots are plentiful and depending on their soil conditions will continue to sell well. Their value range is from $55,000 to $127,000 plus well and septic systems.

On June 4, 2025 there were 254 active residential properties for sale in the Municipality of Anchorage. That’s good news with greater selection for buyers. More buyer good news is only 1.98% appreciation over the prior year. But the bad news is the average paid price is now $539,466. Of the 254 homes for sale more than half, 165, are above the average sales price.

Here and nationally, affordability still is a major issue. According to the National Association of Realtors, only about 21% of buyers can afford a $350,000 home. Anchorage has only 20 for sale between $300,000 and $400,000. But above $1 million we have 37. Their average time on the market is only 36 day! District 25, between DeArmoun and Potter Marsh, is where the average sales price is $998,811. And District 25 has had an increase of 22.62% as a result of new construction activities. So, what makes that area so special? Mountain and inlet views. And available land.

While Anchorage continues to have a tight housing market and negligible appreciation, the Mat-Su Borough has an appreciation of 5.42 percent while their average sold price is $100,000 less than Anchorage. So, what should a buyer make of all of this? Who wants to ride through the zipper on the Glenn to save a $100,000 on the price of a new home. I’ve said it before the big, bold Mat-Su is the silent elephant walking through the wilderness. You never know it’s there until you’re staring at its trunk. This weekend is Colony Days in historic Palmer with a Parade, music and local food. I hope to see you there.

Thank you for your readership over the past forty years. My next article will appear on July 9th.