But beyond the cities, rural areas like the Mat-Su Borough and Kenai Peninsula followed a different rhythm.
Here, buyers chased space, solitude, and affordabilityeven as infrastructure and accessibility posed challenges.
Even during the pandemic, Mat-Su kept gaining residents while other areas lost people.
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By 2022, Mat-Sus population was over 111,000, making it the second-most populous region in the state.
Anchorages population, meanwhile, shrank for several years in a row (2018 through 2022).
Each year more people left Anchorage than moved in, many going to Mat-Su.
This trend wasnt new Anchorage had experienced net migration losses for nine consecutive years up to 2021.
In 2023 alone, about 40,000 people left Alaska for elsewhere in the U.S.
Despite net outmigration, a subset of newcomers did arrive, especially during the pandemic.
Some were remote workers drawn to Alaskas lifestyle.
For example, Ketchikan in Southeast Alaska saw an influx of remote-working homebuyers in 2021.
These newcomers bought homes in Ketchikan and used available high-speed internet to work for Lower 48 employers.
Other areas popular with out-of-state remote workers included scenic spots like Talkeetna and parts of the Kenai Peninsula.
In summary, urban Alaska wasnt drawing floods of new residents in 20182023 it was actually the opposite.
That was a jump of 8.9% in one year one of the largest annual increases in decades.
In 2022, Anchorages average home price climbed to $456,000, the highest on record for the city.
Supply Shortages and Affordability Crisis
Housing supply was tight statewide, and especially in the cities.
This scarcity, combined with eager buyers, led to bidding wars.
With prices soaring, housing affordability worsened, especially by 20222023.
Anchorage officials described a housing crisis as prices outpaced incomes.
By 2023, buying a home in Alaska was the least affordable it had been since 2006.
The statewide average mortgage payment rose 52% between 2018 and 2024.
Renters felt the crunch too rents in Alaska climbed about 24% from 2018 to 2023.
Interest Rates and Market Cooling
Interest rates played a crucial role in market dynamics.
However, in 2022 rates began rising sharply.
By late 2022 into 2023, 30-year mortgage rates had doubled to around 6%.
This increase priced some buyers out and started to cool the market by 2023.
By early 2023, housing activity dropped from the 2021 peak.
Home sales volumes were down, and homes took longer to sell.
Realtors in late 2022 said Anchorage was still a sellers market.
Fairbanks
The Fairbanks area hadlower home prices and slower growththan Anchorage or Southeast Alaska.
Fairbanks is a military and university town, and population growth was pretty flat from 2018 to 2023.
Fairbanks didnt experience the double-digit price spikes that Anchorage or some Southeast communities did.
Overall, Fairbanks housing market in 20182023 was stable but not booming.
Home prices in Juneau were the highest in Alaska by 20202021, averaging in the high $400Ks.
Despite its small size, Juneaus government and professional jobs give it a relatively affluent buyer base.
During 20182023, Juneau saw strong demand and low supply, similar to Anchorage.
Other Southeast Alaska towns like Ketchikan and Sitka also saw big price gains.
From 2018 to 2023, Mat-Su attracted waves of homebuyers, including many first-time buyers and families from Anchorage.
The pandemic turbocharged this trend.
Even with those increases, Mat-Su remained more affordable than Anchorage, which continued to draw buyers.
During 20182023, the Kenai housing market also heated up, though not to the same degree as Mat-Su.
With remote work, a few people even moved to their vacation homes on the Kenai to live full-time.
These areas didnt see a boom in homebuying in the way urban and road-connected areas did.
A small trend during the pandemic was urban Alaskans investing in remote land or cabins.
The pandemic heightened the desire for single-family homes because people wanted extra rooms and outdoor space.
Statewide data indicated a shift towardlargerhomes during 202021 (more 4-bedroom houses sold).
This was a sign of upsizing families seeking room for home offices, home schooling, or multigenerational living.
Condos and Townhouses
Condominiums are primarily found in Anchorage and to some extent Fairbanks and Juneau.
During 20182023, condos made up a smaller share of sales, but served important roles.
When single-family prices surged in 20202022, condos became an attractive affordable alternative for many buyers.
Vacant Land and Cabins
A notable segment of Alaskas real estate is vacant land sales.
People often buy land either to build a home or as a long-term investment (or recreation spot).
A distinctive part of Alaska homebuying is the pursuit of the recreational cabin or second home.
Between 2018 and 2023, low interest rates made it easier for some to finance these second properties.
Travel restrictions and uncertainty caused some moves to be put on hold.
But very quickly, by summer 2020, the housing market took off.
People who had been stuck inside under hunker down orders realized they wanted more comfortable homes.
At the same time, stimulus money and reduced spending on travel meant many households had extra savings.
By 2021, many workplaces adopted hybrid schedules or full-time remote options.
This had direct effects on homebuying:
The pandemic emphasized quality of life at home.
This likely contributed to the surge in home improvement and moving.
The need for personal outdoor space made single-family homes with yards more coveted than condos.
More workers returned to offices (at least part-time), which slowed the flood to the exurbs.
Higher interest rates forced many to stay put.
Homeowners with super low mortgage rates were reluctant to sell and lose that rate.
Prices dipped slightly around 2009, then remained fairly flat or grew modestly in the early 2010s.
In contrast, 20182023 was a period of much more rapid price growth, especially during 20202022.
But around 20132014, the tide shifted and outmigration became the norm.
In 20182023, Alaska experienced 12 straight years of net outmigration by 2023.
That cumulative population loss (to other states) was unprecedented.
Role of Remote Work
In 20082017, remote work was virtually a non-factor.
Almost everyones homebuying choices were constrained by where their job was located.
In 20182023, remote/hybrid work became a significant factor for the first time in history.
This allowed much more flexibility in urban vs rural living.
Thats a fundamental change and one big reason more people moved out of the city in the recent period.
Both urban and rural markets experienced these ups and downs, though with important differences.
References
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