Building Costs Per Square Foot in the State of Alaska, USA

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Alaska 5219 Morning Star Cir Wasilla AK99654 $409000_3 Bed and 2 Baths_1502 sqft Built in 2022 (2)_result

Newly Built Single Storey Home in Alaska 5219 Morning Star Cir Wasilla AK99654 Price $409000 – 3 Bedrooms and 2 Baths with 2 Attached Garages on Gross Floor Area 1502 sqft Built in 2022 (2)_result

Residential Construction Market Analysis in the State of Alaska, USA

Building costs are 23% above the national average in the state of Alaska, 3% higher than Hawaii and 11% higher than Massachusetts. Alaska is the most expensive state to build a house in the USA.

Alaska gets its name from an Aleut word that translates to “great land,” and they certainly couldn’t have chosen a more appropriate name for their stunning scenery.

From the state capital in Juneau to the North Shore, Alaskans enjoy everything from temperate rainforests to stunning snow-capped peaks. Alaska, the largest state in the union, covers more than 586,000 square miles. Don’t let this confuse you, this is not to say that the entire state is habitable, as nearly 85% of it is affected by Arctic permafrost.

If you’re thinking of buying or selling in Alaska, luckily you’ve come to the right place. In this article, we will present some predictions about what is expected to happen in the housing market and statistics on home values ​​in Alaska. This will help you see the bigger picture you’re in, and learn a little more about this state that attracts more tourists than residents, but is actually a gem in the rough for the residential real estate market.

Alaska Construction Outlook

In the capital of Alaska and its other cities such as Anchorage, the constructions are houses or small buildings that have up to 10 apartments. They are constructions prepared to face the excessive cold that is experienced during the winter, with good insulating materials and powerful heating inside. There are a few condominiums in Juneau for college students, but most choose to live in college-granted homes, or in their family’s homes.

A building that stands out above the rest in Alaska can be found in the Alaskan town of Whittier, it is truly unique, and has earned the nickname of the “town that lives under one roof”. Nearly the entire population of Whittier lives in the same building, known as Begich Towers, which also houses a school, post office, health clinic, police station, market, and church. There are 318 people who live in that tower throughout the year, and they share practically every moment of their daily life together. In that city, there are two apartment buildings in the city, but the other is very small and houses approximately 5% of the population, adding that there are no private houses because you cannot buy properties or land to build a house in the city.

Alaska Housing Market Analysis and Forecast

Currently, Alaska is going through what is known as a buyer’s market. This means that real estate prices are not excessively high and there are many properties for sale, which leaves a lot of room to negotiate a good price. While that may be the general trend, every town and city is different, and prices often vary.

Home prices in Alaska are higher than the national average, and this can be explained by the fact that Alaska is considered an “exotic” state that tends to attract more tourists than people looking to live there, so buyers must fight against investors from the tourist world.

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Houses tend to sell quickly, which means that buyers are buying good properties in a short period of time. However, with a large amount of housing inventory, the Alaska market is not as attractive as it seems for real estate investors, as there is more supply than demand.

The cheapest regions are Fairbanks, Fondo, and Juneau with the lowest prices, while the highest prices are found in Sitka, Homer, and Ketchikan. Anyway, in Alaska, it is better to play it safe than to go cheap, especially if you are moving from another state.

Alaska Average House Price (Median Home Price)

The average value of a median home in Alaska is $314,278. It is important to remember that these values ​​vary widely depending on which town or city you are in. In any case, the value of the median home in Alaska is usually quite stable, and due to its climatic conditions, the ideal is to buy a house that is in good condition even if it is a little more expensive, and not always go cheap, since it can end up costing dearly in the future.

Remember that by median home we mean a house with 3 bedrooms, 2 bathrooms, a kitchen, a living room, a garage, and a small garden. Others are cheaper, such as multi-family homes or condominiums. There the average value is $252,000.

If you’re looking for the best prices to buy, then Wasilla, Fairbanks, and Homer offer the best average prices for median homes. There the values ​​are less than $300,000. While in cities like Anchorage and Juneau the median home values ​​exceed $300,000 since they are honestly the stars of the state.

Proposed Residential Building Projects in Alaska

Most real estate projects in Alaska are related to tourism. They are luxury hotels, or cabins designed so that people can have a getaway in the Alaskan snow. There are some people who go as tourists for a couple of days, so the hotel industry is always welcoming new people.

In Juneau, there is a project to make summer houses, because its population increases by about 6,000 people a day during the summer when the cruise ships arrive. The houses are intended to be rented for the summer months, and then can be temporarily rented by university students who come to the city.

The University of Alaska Southeast in Juneau is always attracting new people: regular students, exchange students, professors, and visiting families. For this reason, around the campus, there are some projects to build condominiums or residential houses that have the same architectural style.

Alaska 7334 Zurich St Anchorage AK99507 $585000 4Bed 4Bath_2095 sqft_Built in 2021_result

Newly Built Double Storey Home in Alaska 7334 Zurich St Anchorage AK99507 – Price $585000 – 4 Bedrooms and 4 Baths with 3 Attached Garages on Gross Floor Area 2095 sqft, Built in 2021_result

Building Costs Per Square Foot for Single Family Homes in the State of Alaska, USA

Building costs are 23% above the national average in the state of Alaska, 3% higher than Hawaii and 11% higher than Massachusetts. Alaska is the most expensive state to build a house in the USA.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Alaska ranges from $424.21 per sqft to $650.30 per sqft, with the average being $500.64 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Alaska ranges from $257.82 per sqft to $395.20 per sqft, with the average being $304.25 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Alaska ranges from $166.67 per sqft to $253.15 per sqft, with the average being $195.13 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Alaska ranges from $121.63 per sqft to $186.53 per sqft, with the average being $143.55 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Alaska ranges from $98.73 per sqft to $151.20 per sqft, with the average being $116.42 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Alaska ranges from $77.87 per sqft to $119.36 per sqft, with the average being $91.86 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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List of 5 Metropolitan Areas/Cities in Alaska – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 149 municipalities and 15 special districts grouped into 15 counties in the state of Alaska. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Alaska is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Alaska:

Alaska Average 20% (20% more than X)

  • Ketchikan 999 18%
  • Juneau 998 19%
  • Alaska Average 23%
  • King Salmon 996 23%
  • Anchorage 995 26%
  • Fairbanks 997 27%

The Metropolitan Area List above as well as the Bar Graphs below shows that Ketchikan is the cheapest city to build a private home in the state of Alaska. Fairbanks is the most expensive city to build a home. Building costs are 18% above the national average in Ketchikan and 27% above the national average in Fairbanks.

Cheapest Places To Build in Alaska:

The cheapest places to build are those below 5%. There are no such places in Alaska.

Expensive Places To Build in Alaska:

If anything between 5% and 10% is considered expensive, then there are no such metropolitan areas in the state of Alaska.

More Expensive Places To Build in Alaska:

If anything between 10% and 15% is considered more expensive, then there are no such metropolitan areas in the state of Alaska.

Very Expensive Places To Build in Alaska

The most expensive places to build a house in the USA are those which are 15% + above the national average. There are 5 such places in Alaska.

Fairbanks is the most expensive city to build a home in Alaska at 27% above the US average. This is followed by Anchorage at 26% above the national average. The third most expensive city to build is King Salmon at 23% above the national average. In fourth place is Juneau at 19% above the national average, followed by Ketchikan at 18% above the national average.

Alaska State Average Costs:

Private home building costs in the state of Alaska are 23% above the US average. Building cost rates in the metropolitan area of King Salmon are equivalent to the Alaska state average. Fairbanks is the most expensive city to build a home in Alaska. The state of Alaska is the most expensive state to build a home in the USA.


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