April Real Estate & Construction Update

In the first four months of 2023, Anchorage approved projects worth roughly $148 million.

Despite permitting relatively few new units, Residential permit value still exceeds the permitted value from 2019 and 2020.

Commercial permit value was off to a slow start in January and February this year. Thanks to $54 million in March alone, however, Commercial permit value so far in 2023 ($96 million) is now about halfway between the $122 million permitted January-April 2022 and the $70-75 million permitted over the same period in 2019-2021.

Finally, Government permit value in 2023 continues to have a brutal year, with total permitted value of just $5.2 million. Looking at other recent years, 2019 is the next lowest at $13.1 million, and 2020 is the highest at $58 million (more than 10x the value) thru April.

Anchorage Housing Market Studies and Land Use Plans have (for a decade) suggested Anchorage needs to be adding at least 800-900 net additional units per year to accommodate desired growth as well as our shifting demographic patterns (e.g. fewer children reducing the average number of persons per household)

Anchorage has consistently missed all housing development targets by 40-50%, and unfortunately, 2023 is so far our weakest of the past 5 years in terms of permitted new residential units through April.