Alaska’s housing market tells a story unlike any other state—where choosing between urban and rural often means more than just location. From 2018 to 2023, Anchorage, Fairbanks, and Juneau saw steady demand and limited inventory, driving up prices and competition. But beyond the cities, rural areas like the Mat-Su Borough and Kenai Peninsula followed a different rhythm. Here, buyers chased space, solitude, and affordability—even as infrastructure and accessibility posed challenges. Whether it was a modern condo in downtown Anchorage or an off-grid home in the interior, Alaskans were guided by priorities as varied as the landscape itself.
Alaska’s Urban and Rural Landscape
Alaska is the largest state in the U.S., but its population is small and concentrated. Just over half of Alaskans live in the Anchorage/Mat-Su region, which had about 55% of the state’s population as of 2022. Anchorage, by far the biggest city (population ~290,000), and its suburban Mat-Su Borough (over 110,000 people) form the state’s main urban hub.
Other “urban” areas include the Fairbanks region (around 100,000 people) and the capital city, Juneau (~32,000). The rest of Alaska’s population is spread across small towns, rural boroughs, and remote villages, from the Kenai Peninsula to the Arctic coast.
In Alaska, rural can mean a small road-connected town (like those on the Kenai Peninsula or in the Mat-Su Valley) or truly remote communities off the road system. For this analysis, “urban” refers to the larger cities and boroughs (Anchorage, Fairbanks, Juneau), while “rural” encompasses smaller communities and outlying areas.
Population Shifts: City to Suburb and Out of State
Mat-Su Growth, Anchorage Decline
The Mat-Su Valley (including towns like Wasilla and Palmer) has been Alaska’s fastest-growing area for years. Even during the pandemic, Mat-Su kept gaining residents while other areas lost people. In 2021, nearly 3,000 people moved from Anchorage to Mat-Su, while about 1,500 went the other direction, making for a big net gain for Mat-Su. By 2022, Mat-Su’s population was over 111,000, making it the second-most populous region in the state.
Anchorage’s 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 wasn’t new – Anchorage had experienced net migration losses for nine consecutive years up to 2021.
Rural Outmigration and Remote Workers
Many rural parts of Alaska lost population in this period, continuing a decades-long trend of people from small villages and remote areas moving to road-system communities or out of state. From 2012 to 2023, Alaska had more people moving out than moving in every single year – an unprecedented stretch of net outmigration. 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 Alaska’s 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 wasn’t drawing floods of new residents in 2018–2023 – it was actually the opposite. The state’s modest population growth came almost entirely from natural increase (births minus deaths) and from the growth of the Mat-Su suburbs fed by people leaving Anchorage.
Housing Market Boom During 2018–2023
Record Home Prices
Even with slow population growth, Alaska’s housing market saw a major boom in demand from 2020 to 2022, affecting both urban and rural areas. Several factors came together: historically low interest rates, limited housing supply, and lifestyle changes during COVID-19 led to rapid price increases and fierce competition for homes.
By 2021, the average sale price of a single-family home in Alaska hit an all-time high of about $389,000. That was a jump of 8.9% in one year – one of the largest annual increases in decades. In 2022, Anchorage’s average home price climbed to $456,000, the highest on record for the city.
Juneau, which has some of the priciest real estate in Alaska due to limited land and many government jobs, saw its average house price top $475,000 in 2021, the highest of any city in the state. Smaller markets saw spikes too: Ketchikan’s average price jumped 16% in 2021 (to about $440,000) – the biggest increase of any area that year. Even traditionally affordable markets rose: Fairbanks had the lowest average price, around $314,000 in 2021, but was also up from prior years.
Supply Shortages and Affordability Crisis
Housing supply was tight statewide, and especially in the cities. In Anchorage, realtors reported that by late 2022 there were fewer than 200 single-family homes listed for sale – only about a one-month supply, which is very low. This scarcity, combined with eager buyers, led to bidding wars.
It wasn’t uncommon in 2020–2021 for homes to sell above asking price or for sellers to get multiple offers within days of listing. Nearly 45% of homes sold in Anchorage during 2020–21 had four or more bedrooms (larger, more expensive homes), a slightly higher share than in pre-pandemic years. This suggests many families were upsizing or seeking bigger homes, likely because they wanted more space while working or schooling from home.
With prices soaring, housing affordability worsened, especially by 2022–2023. 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. In 2020 and 2021, mortgage rates fell to historically low levels (under 3% for a 30-year loan). These low rates were a big reason so many people jumped into the market – cheap credit meant buyers could afford more expensive homes for the same monthly payment.
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. Homes in Anchorage, for instance, started to stay on the market longer (about a month on average, whereas in 2021 many sold in days).
By early 2023, housing activity dropped from the 2021 peak. Home sales volumes were down, and homes took longer to sell. However, prices did not crash; they generally leveled off or saw slight growth, largely because inventory was still tight.
Urban Markets: Anchorage, Fairbanks, and Juneau
Anchorage
The state’s largest city had high demand but very limited supply of homes. There is a well-known land shortage in Anchorage (the city is bounded by water and mountains, and much land is set aside as park or military use), which means building new homes is challenging.
During 2018–2023, Anchorage homeowners mostly bought traditional single-family houses, but condos and townhouses also catered to singles, young couples, or downsizing seniors. Realtors in late 2022 said Anchorage was still a seller’s market. Urban homebuyers in Anchorage also faced competition from investors and landlords, as rental demand stayed high (rents jumped over 14% in Anchorage in 2022 alone).
Fairbanks
The Fairbanks area had lower home prices and slower growth than Anchorage or Southeast Alaska. An average home in Fairbanks was around $300K–$340K in the early 2020s, the lowest among Alaska’s “urban” regions. Fairbanks is a military and university town, and population growth was pretty flat from 2018 to 2023.
Homebuying trends in Fairbanks saw steady activity – families buying single-family houses with yards, modest levels of new construction – but not the extreme bidding wars seen in Anchorage. Fairbanks didn’t experience the double-digit price spikes that Anchorage or some Southeast communities did. Overall, Fairbanks’ housing market in 2018–2023 was stable but not booming.
Juneau and Southeast Cities
Juneau has a unique housing market because it’s landlocked by mountains and sea with very little room to expand. Home prices in Juneau were the highest in Alaska by 2020–2021, averaging in the high $400Ks. Despite its small size, Juneau’s government and professional jobs give it a relatively affluent buyer base.
During 2018–2023, Juneau saw strong demand and low supply, similar to Anchorage. Other Southeast Alaska towns like Ketchikan and Sitka also saw big price gains. These increases were partly due to locals competing for a very limited number of listings, and partly due to outside buyers purchasing vacation homes or investment properties for summer tourism rentals.
Suburban and Rural Trends
Mat-Su Valley: Anchorage’s Suburbia
The Mat-Su Borough exemplifies rural housing growth in Alaska. From 2018 to 2023, Mat-Su attracted waves of homebuyers, including many first-time buyers and families from Anchorage.
The data is striking: on average, wages for an Anchorage job were about 32% higher than Mat-Su’s in 2021, yet Mat-Su’s average home price was 18% lower than Anchorage’s. This gap made it very appealing for someone who works in Anchorage (or remotely for an Anchorage employer) to buy a home in Mat-Su and commute.
The pandemic turbocharged this trend. Suddenly, daily commuting was less necessary for many jobs, so people felt freer to live further from the city. Some affluent buyers who couldn’t find new houses or large lots in Anchorage looked to Mat-Su to build custom homes on acreage.
Mat-Su’s population kept climbing and so did home construction: by 2022, more than half of all new homes built in Alaska were being built in Mat-Su. Home prices in Mat-Su rose significantly – the average price around Wasilla went from roughly $327K in 2020 to $369K in 2021. Even with those increases, Mat-Su remained more affordable than Anchorage, which continued to draw buyers.
Kenai Peninsula
The Kenai Peninsula, south of Anchorage, includes towns like Soldotna, Kenai, Homer, and Seward. During 2018–2023, the Kenai housing market also heated up, though not to the same degree as Mat-Su.
Kenai Peninsula Borough saw modest population growth and a lot of local shuffling – some Anchorage residents purchased second homes or cabins on the Kenai for recreational purposes. With remote work, a few people even moved to their “vacation” homes on the Kenai to live full-time.
Home prices on the Kenai rose alongside the rest of the state, although the starting point was lower than Anchorage/Juneau. Builders in Kenai/Soldotna put up new homes to meet demand, but construction was limited by high material costs and labor shortages.
Remote Rural Areas
In truly remote rural Alaska (villages in Western and Northern Alaska, off-road settlements), the homebuying “market” operates very differently. Much of the housing in these areas is not bought and sold on the open market but passed through families or managed by regional housing authorities.
From 2018 to 2023, conditions in many rural villages remained challenging: there is a well-documented housing shortage in rural Alaska, with overcrowded homes and a lack of new construction. These areas didn’t 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. Some people, perhaps prompted by COVID-19, sought the ultimate social distancing by acquiring cabins in the woods or land in remote corners of Alaska.
Types of Homes and Buyer Preferences
Single-Family Homes
The bread and butter of Alaska homebuying was the single-family detached house. The pandemic heightened the desire for single-family homes because people wanted extra rooms and outdoor space. Statewide data indicated a shift toward larger homes during 2020–21 (more 4-bedroom houses sold). This was a sign of upsizing – families seeking room for home offices, home schooling, or multigenerational living.
In the Mat-Su and Kenai, some buyers from the city specifically chose homes with acreage, or even small farms, since remote work allowed a more rural lifestyle. By contrast, in Fairbanks and smaller communities, single-family homes were often the only option (few apartments or condos are available there).
Condos and Townhouses
Condominiums are primarily found in Anchorage and to some extent Fairbanks and Juneau. During 2018–2023, condos made up a smaller share of sales, but served important roles. For young professionals or smaller families, condos were often the entry point to home ownership, since they tended to be cheaper than single-family homes.
When single-family prices surged in 2020–2022, condos became an attractive affordable alternative for many buyers. At the same time, some downsizing seniors and empty-nesters in Anchorage chose high-end condos – there was interest in luxury condo developments where older homeowners could sell the big family house and move into a nice apartment-style home with an elevator and security.
Vacant Land and Cabins
A notable segment of Alaska’s real estate is vacant land sales. People often buy land either to build a home or as a long-term investment (or recreation spot). From 2018 to 2023, land sales in the Mat-Su and Kenai areas were brisk, as those boroughs have plenty of subdivided lots.
Land in Alaska can be relatively affordable (though prices were rising here too), but the cost to develop (bring in power, well/septic, construction) is high. During the pandemic, interest in land ownership ticked up – some Alaskans felt more urgency to secure a piece of property. Real estate sources noted that Lower 48 buyers were also looking for land in Alaska, viewing it as a refuge and investment.
A distinctive part of Alaska homebuying is the pursuit of the recreational cabin or second home. Many residents of Anchorage or Fairbanks own (or aspire to own) a cabin somewhere to enjoy fishing, hunting, or simply the wilderness on weekends. Between 2018 and 2023, low interest rates made it easier for some to finance these second properties.
COVID-19’s Impact and Remote Work Revolution
From Slowdown to Surge
In early 2020, when COVID-19 first hit, Alaska’s migration and home sales briefly slowed. 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 mid to late 2020, buying a home became a top priority for many, and with interest rates at rock-bottom, it looked achievable.
Remote Work and Housing Flexibility
One of the pandemic’s biggest housing impacts was the work-from-home (WFH) revolution. In Alaska, a state with many office jobs in government, oil, and professional fields, remote work suddenly became normal in 2020. By 2021, many workplaces adopted hybrid schedules or full-time remote options.
This had direct effects on homebuying:
- People sought houses with home offices or extra rooms, driving the upsizing trend.
- Those who no longer needed to be in the city core could consider living farther out. We saw how Anchorage workers moved to Mat-Su in large numbers, partly thanks to telework.
- Some Alaskans relocated within the state because of remote work – for example, a state employee in Juneau might move to a smaller community and work remotely.
- A few Lower 48 remote workers chose to move to Alaska because they could now live anywhere.
The pandemic emphasized quality of life at home. In Alaska, many people who lived in small apartments or condos pre-2020 felt the squeeze when stuck 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.
Market Cooldown Post-Pandemic
By late 2022 and into 2023, as life normalized, some pandemic effects began to fade. 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.
In essence, COVID-19 jolted Alaska’s housing trends – accelerating moves and purchases in 2020–2021 – and introduced remote work as a lasting factor that tends to blur the urban-rural divide. An Anchorage job can now, in some cases, be done from a cabin in rural Alaska or from a home in a small town.
Comparing 2018–2023 to 2008–2017
Home Prices and Market Heat
The 2008–2017 era was relatively tame for Alaska home prices. After the 2008 financial crisis, Alaska’s housing market cooled; but unlike some Lower 48 states, it didn’t crash dramatically. Prices dipped slightly around 2009, then remained fairly flat or grew modestly in the early 2010s.
In the mid-2010s (2015–2017), Alaska went through an oil-price-driven recession – state employment and incomes dropped, which put downward pressure on housing demand. Anchorage actually saw a small population decline starting around 2015, and housing prices in some areas stagnated or fell slightly.
In contrast, 2018–2023 was a period of much more rapid price growth, especially during 2020–2022. For example, the statewide average house price in 2011 was around $268,000 and rose gradually to about $300,000 by 2017 (roughly 12% increase over six years). But from 2018 to 2023, the jump was far larger – from roughly the low-$300Ks up to nearly $400K statewide.
Migration Patterns
In 2008–2017, Alaska still had some years of net population inflow in the late 2000s and early 2010s, especially when oil projects were booming. But around 2013–2014, the tide shifted and outmigration became the norm.
In 2018–2023, Alaska experienced 12 straight years of net outmigration by 2023. That cumulative population loss (to other states) was unprecedented. The Mat-Su suburban surge itself began earlier (Mat-Su was booming in the 2000s too), but it accelerated in 2018–2023 as Anchorage proper lost people each year.
Role of Remote Work
In 2008–2017, remote work was virtually a non-factor. Almost everyone’s homebuying choices were constrained by where their job was located. In 2018–2023, remote/hybrid work became a significant factor for the first time in history.
This allowed much more flexibility in urban vs rural living. For example, in 2010 an office worker in Anchorage had to live within commuting distance; by 2021 that same worker might feasibly live in a cabin two hours away and commute occasionally or not at all. That’s a fundamental change and one big reason more people moved out of the city in the recent period.
Final Thoughts
The 2018–2023 period saw Alaska’s housing market swing from hot to hotter, then begin to cool off as interest rates went up. Both urban and rural markets experienced these ups and downs, though with important differences.
Urban centers like Anchorage and Juneau faced severe housing shortages with little room to grow, pushing prices to record highs. Meanwhile, suburban areas like Mat-Su boomed as remote work enabled residents to move farther from city centers while maintaining their urban jobs.
COVID-19 accelerated existing trends, particularly the desire for larger homes with more space and the movement from urban to suburban or rural areas. As we move forward, the blurring of the urban-rural divide through remote work may continue to reshape Alaska’s housing landscape.
References
Here are all the references used in the article, with titles hyperlinked to their sources:
- The Resilient Mat-Su Borough – Alaska Economic Trends, June 2023
- Anchorage’s average home price rose to a record $456K, but higher interest rates are starting to cool the market – Anchorage Daily News
- Alaska housing prices jumped last year to a new record of $389,000 – Anchorage Daily News
- Soaring rents, mortgages and home prices: What new data shows about Anchorage’s housing crunch – Anchorage Daily News
- With Alaska outmigration continuing, community members contemplate responses – Anchorage Daily News
- Housing Affordability – Alaska Economic Trends, June 2022
- Alaska Homeowners Cashing In: High demand, low supply creating chaotic real estate market – Alaska Business Magazine
- How Alaska’s Most Affluent Homebuyers Are Reshaping the Market – HomeStratosphere
- Alaska Housing Market: House Prices & Trends – Redfin
- Remote Recreational Cabin Sites Staking Program – Alaska Department of Natural Resources
- Low-wage states with cheap housing dominated the post-pandemic jobs boom – Alaska Beacon
- The cost of living in Alaska – Alaska Department of Labor
- The Economic Impacts of COVID-19 on Alaska’s Visitor Industry – Alaska Tourism Industry Association
