Alaska Is Struggling in Affordability and Homebuilding: Can Gov. Dunleavy Jumpstart Construction?

"Alaska's housing market is facing a cold reality: high prices, limited supply, and slow construction. The state earned a C- on the Realtor.com® State-by-State Housing Report Card, part of the Let America Build campaign that measures how states balance affordability and homebuilding. But regardless of a state's rating, this is a national problem. Hoping to spur on action, President Donald Trump recently put pressure on large homebuilders to increase construction nationwide."

"In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices-likening them to OPEC, which restricts oil output to maintain high prices. "They're my friends ... but now, they can get Financing, and they have to start building Homes. They're sitting on 2 Million empty lots, A RECORD," Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and "get Big Homebuilders going" to "restore the American Dream.""

"Alaska posted a total score of 40.4, putting it just above the national failing range. The state's median listing price reached $417,738 in 2024, while the median household income stood at $86,275. That gives Alaska a Realtor Affordability Score of 0.73-decent compared with other coastal states, but still well below what's needed for most buyers to comfortably afford a home."

Alaska's housing market combines high prices, limited inventory, and sluggish homebuilding. The state earned a C- with a total score of 40.4 and a median listing price of $417,738 in 2024 versus median household income of $86,275, yielding a Realtor Affordability Score of 0.73. New construction is minimal, accounting for 0.1% of national housing permits despite representing 0.2% of the population, producing a low permit-to-population ratio of 0.5. The new-construction premium is 30.3%, indicating new homes are significantly more expensive. The scarcity and cost of new homes may further limit building in remote regions, complicating recovery after recent devastation.

Read at SFGATE