Anchorage sees record breaking jump in rental prices, up 14%

In 2021, rental prices were on average $1,172. However, this year, according to the Alaska Economics Trends September 2022 report, prices have increased to $1,3
Published: Sep. 13, 2022 at 6:29 PM AKDT
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ANCHORAGE, Alaska (KTUU) - Anchorage rental prices have soared since 2021, becoming the highest ever recorded for the city by the Alaska Department of Labor and Workforce Development.

In 2021, rental prices were $1,172 on average. This year, prices have increased to $1,339 on average, according to the Alaska Economics Trends September 2022 report. This is a 14.2% increase, compared to the average increase of 2% the state had been seeing since 2007.

“Pitches in ways that nobody expected,” said CEO and President of the Anchorage Economic Development Corporation Bill Popp.

The department reported that for most Anchorage residents, their rental bill is 24% of their paycheck each year. The increase in price is now coming hand-in-hand with the competitive housing market. Popp said that currently there is only a 4% rental vacancy for the city, and said he had heard from some landlords that they are seeing an availability rate of 2% and lower for specific properties.

“It’s definitely, you know, a wake-up for a lot of folks out there trying to find an apartment that they can afford,” Popp said.

Popp said the jump in rent prices was expected to occur.

“Is demonstrating a catch up from the COVID period, in which we saw rent kind of held in place, due to the protections on evictions — as well as other related factors. People just basically not moving out on their own at that point in time,” Popp said. “It’s caught up with where we should have been anyways due to the normal progression of rental rates we’ve seen in recent years.”

Despite the increase in rent seen in Anchorage, the Anchorage Economic Development Corporation reported that Anchorage rental prices are lower compared to other places in the state.

The report states that a majority of cities are seeing residents pay between 22% and 27% of their monthly paychecks towards their rent. In some areas like Sitka, they are seeing 32% of their paycheck dedicated to paying their rent.