Latest Economic Trend report: modest rental rate increase, slight increase in home buying affordability
The Alaska Department of Labor and Workforce Development published its latest economic report, which includes the results of a housing affordability survey done this spring. You can read the full report here: https://live.laborstats.alaska.gov/trends-magazine/2026/September/rental-costs-up-this-year A few key takeaways that relate specifically to Anchorage’s housing development conversations:
Rental Prices and Growth: In March, the median rent plus utilities for a two-bedroom apartment in Anchorage was $1,720, representing a modest year-over-year increase of 2.4 percent. This growth rate was notably lower than in recent years.
Rental Vacancy Rates: Anchorage's rental vacancy rate dropped to 4.9 percent in March, down from 5.6 percent in 2025 following three consecutive years of increases, though it remains slightly above its long-term median of roughly 4 percent.
Employment and Population Dynamics: Anchorage experienced slow average job growth of 0.5 percent and total wage growth of 5.1 percent from 2024 to 2025. The adult population ticked up by 0.1 percent, while the net migration rate was -0.5 percent, continuing a multi-year net migration loss streak. Anchorage’s population continues to age.
Homebuying and Mortgage Costs: Between 2019 and 2025, the estimated monthly mortgage payment for a primary residence in Anchorage jumped by 77 percent (rising from $1,185.00 to $2,093.44) due to interest rates. Consequently, new primary mortgage originations in the municipality fell by 25 percent over the same period, dropping from 3,513 to 2,643. The report identifies interest rates as the most influential factor in housing affordability, above median home values and wage increase impacts.
New Housing Construction: Anchorage permitted 404 new housing units in 2025—the highest total in eight years—consisting of 170 single-family homes and 234 multi-family units, accounting for about 18 percent of total new units statewide.
Housing Affordability: Though no Anchorage-specific figures were provided, state-wide figures show that buying a home became slightly more affordable for a second consecutive year in 2025, with the Alaska Affordability Index dropping to 1.37 from its high point of 1.40 in 2023. The index value represents the number of average monthly wage earners required to afford a mortgage on a median-valued home, meaning lower values indicate greater affordability.