3.0 Affected Environment - Knik Arm Bridge and Toll Authority

Knik Arm Crossing DraftFinal EIS
Affected Environment
Finance Corporation 2005). In the third quarter of 2005, the average house price in
Anchorage was $264,300, as compared with $220,272 in the Mat-Su. The major reason
for this pricing difference is lower land costs in the Mat-Su because of the greater
availability of land for housing development.
The number of housing units increased in both the Mat-Su and Anchorage between 1990
and 2000. 3 However, both the growth rate and the total number of housing units added during
the period were greater in the Mat-Su than in Anchorage (Table 3-5). The rapid growth in the
Mat-Su reflects the relative availability of larger parcels of land for residential development
and lower costs of purchasing land and constructing a new home.
Table 3-5. Number of housing units in the affected area, 1990 and 2000
Anchorage
Mat-Su
Category 1990 2000 1990 2000
Total housing units (number) 94,153 100,368 20,953 27,329
Annual change — 0.64% — 2.69%
Vacant units (number) 11,451 5,546 7,559 6,773
Single-family unit portion 52.1% 57.2% 79.6% 82.5%
Vacancy rate 12.1% 5.5% 36.1% 24.8%
Median housing value $139,703 $160,700 $116,072 $125,800
Source: U.S. Census Bureau, 2005
Both Anchorage and the Mat-Su have vibrant and thriving housing markets. These markets
are, however, experiencing important changes. For example:
• For years, Anchorage has seen more housing starts than the Mat-Su, but in 2004 the
number of housing starts in the Mat-Su surpassed the number of starts in Anchorage for
the first time. 4 For the past several years more multifamily housing has been developed in
Anchorage than single-family housing. 5 In the Mat-Su, single-family home development
is likely to remain the dominant housing product, but the number of multifamily homes is
also expected to grow substantially. 6
• Sales prices in Anchorage are increasing more slowly than in the Mat-Su. The average
sales price for Anchorage homes increased by 2.7 percent annually between 1992
and 2004, while the average sales price for Mat-Su homes increased by 3.6 percent
(Alaska Multiple Listing Service, Inc. 2005).
3 The U.S. Census Bureau defines a housing unit as a house, apartment, mobile home or trailer, or a group of
rooms or a single room occupied as a separate living quarters.
4 Personal communication, Kreiger, Alaska Department of Labor and Workforce Development, Research and
Analysis Section. Lender’s survey data requested by Northern Economics, Inc.
5 Personal communication, Vicki Portwood, Anchorage Homebuilders Association, with Northern Economics,
Inc., May 24, 2005
6 Personal communication, P. Palmer, Property Specialist, Prudential Vista of Anchorage, with Northern
Economics, Inc., May 26, 2005
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