Shortage of affordable single-family homes in Anchorage
Newly built single-family homes are in big demand here in Anchorage, but local home builders say they can't build them because of too many regulations. Several homes currently under construction in the Anchorage area, are built right next to homes that are also on the market.
"Home prices are going up, so there's demand for additional building, but we're not seeing a lot of single-family construction nationwide," said Robert Dietz, Chief Economist for the National Association of Home Builders.
He says first-time home buyers are the one getting priced out when they search for a home.
Thursday morning, KTVA's Patrick Moussignac talked to Dwell Realty owner, Connie Yoshimura, to find out what the housing situation is like here in Anchorage.
"Our inventory is stable. Our sales are stable," said Yoshimura.
She went on to say, "We have a little bit of a decline in price points, but I attribute that not to an oversupply of inventory, but rather the aging housing stock that we have here."
According to Yoshimura, the average home in Anchorage is about $362,000, even as Alaska's economic downturn is having an impact on new home construction.
"You know we have an active market until about $1 million or $800,000."
Yoshimura also blames certain regulations that continue to put a halt in the building of new single-family homes.
"If you want to have more affordable housing, we need to work on the over regulation and eliminate some of the barriers that's preventing residential land developers and builders from bringing homes on the market more quickly."
Homes these experts say millennials, who are almost in their 30s, would like to purchase as they begin to have families of their own.
As for custom homes costing over $1 million, local real estate experts say there are plenty of them on the market in Anchorage. The only problem with selling some of them is the fact that these homes are built to their owner's tastes, which often times don't appeal to potential buyers.