Real Estate in Anchorage: Your Buyers’ Guide

Anchorage is, by far, the most popular place to live in Alaska. More than 288,000 people call the City of Lights and Flowers home.

If you’re considering making Anchorage your home, you’ll find everything you need to know about Anchorage’s real estate market in this article. We’ll cover topics like you how much you can expect to pay, where to look, what to expect during the buying process, and what kind of lifestyle you can look forward to as an Anchorage resident.

Our goal? To help you make a simple and easy transition to your new home in Anchorage.

Get to Know the Anchorage Real Estate Market

$375,000

Zillow figures put the average Anchorage home value right around $375,000.

$422,584

In 2022, the Alaska Department of Labor pegged the average sales price for a single-family home in Alaska at $422,584.

$419,000

In late 2023, the National Association of Realtors reported a median listing home price in Anchorage of $419,000.

Of course, every listing will be priced according to its own features and benefits, but somewhere around $400,000 is probably a good ballpark.

How Much Is a Down Payment on a House in Anchorage, Alaska?

Assuming a 20% down payment on your Anchorage home, you’re looking at something in the neighborhood of $75,000–$85,000. Of course, the final figure depends on the final price you negotiate.

You may be able to put down less than 20%. However, if you’re able to swing a 20% down payment, you’ll be able to avoid private mortgage insurance (PMI), which will save you money on your mortgage.

Is It Expensive to Live in Anchorage, Alaska?

27%

more expensive than the US average

The cost of living in the state of Alaska is high overall. The Missouri Economic Research and Information Center (MERIC) estimates that living in Alaska costs around 26% more than the national average. This number aligns neatly with Payscale.com estimates that put Anchorage at 27% more expensive than the national average.

Interesting Fact: According to MERIC, the biggest contributor to Alaska expenses is utility costs. That’s not entirely surprising, given Alaska’s frigid winters. (Keep this statistic in mind because it will come in handy later!)

Although living in Anchorage can feel expensive, there are three major factors that will help make up for the cost of living:

1. There’s no personal income tax in Alaska.
2. There’s no sales tax in Anchorage.
3. All eligible Alaska residents receive the yearly Permanent Fund Dividend (PFD).

These three won’t fully offset the cost of living in Anchorage. However, every dollar helps, right?

Do You Have to Pay Property Tax in Anchorage, Alaska?

Yes. Homeowners in Anchorage pay a property tax of 1.41%. The city does offer a few exemptions to lower the tax burden for senior citizens, veterans, and owner-occupied primary residences in Anchorage.

The Best Places to Live in Anchorage

1,961 mi2

area of the municipality of Anchorage

Anchorage is Alaska’s “big” city in more ways than one. In addition to being the state’s most populated area, the municipality of Anchorage is also large, area-wise. It covers 1,961 square miles, which is bigger than the state of Rhode Island. (!)

Anchorage’s size means you’ll have plenty of neighborhoods to choose from when house hunting. We’ll give you a quick run-down of our favorites below, but make sure to check out our full article on the eight best neighborhoods in Anchorage:

• Rogers Park – An affordable spot with a variety of amenities to enjoy.
• South Addition – A family-favorite with plenty of parks and trails.
• Portage Valley – For those who appreciate a quieter, more natural setting with easy proximity to Anchorage.
• Eagle River – A suburban enclave with plenty of trails, lakes, and gorgeous vistas.
• Rabbit Creek – The place to look if you crave a larger home—and a little more space.

Starting Your Search: Anchorage Home-Buying Tips

Now that you’ve got a solid background in Anchorage real estate, let’s talk home-buying tips. These pointers will help you understand how the process works—and what to look out for—so you can close on your ideal Anchorage home, quickly and easily.

Tip #1: Understand the Entire Process So You Know What to Expect

Let’s start with an overview of a typical home-buying process in Anchorage so you have a sense of all the steps involved—and in what order you’ll typically experience them.

Consider this a roadmap to take you from where you are now to walking into your Anchorage home. Of course, everyone’s home-buying journey will be a little different, but this will give you a solid foundation for what to expect.

The Home-Buying Process in Anchorage

1. Get pre-approval for a mortgage
2. Interview a few Anchorage real estate agents to find the right one for you
3. Start browsing listings, both online and in person
4. Locate a home you love
5. Collaborate with your agent to enter an offer
6. Negotiate with the seller to reach an agreement
7. Wrap up the details, including a home inspection, appraisal, title search, and a final walkthrough
8. Finalize your mortgage with your lender
9. Arrive to your closing, ready to pay all your closing costs and fees
10. The sale is officially recorded, a process that may not happen until the next business day
11. The sale becomes official, and you pick up your keys

All that’s left is to settle into your new Anchorage home!

Tip #2: Know All the Options for Financing Your Anchorage Home

If you’re planning on an all-cash purchase, you can skip to the next section.

Otherwise, it’s a good idea to secure financing early—before you start looking at homes or engage an Anchorage real estate agent. After all, your mortgage will set your budget. Once you know the amount you’re approved for, you’ll know exactly how much home you can afford.

Additionally, getting pre-qualified for financing demonstrates that you’re a serious buyer. It will mean that agents are more inclined to show you available properties, and it will position you well during the offer process.

When you’re financing an Anchorage home, you’ll, of course, have conventional loan options open to you. You’ll also want to be aware of:

Next, let’s talk about a key person who’s going to guide you through much of the home buying experience.

Tip #3: Choose Your Real Estate Agent Carefully

Your agent will significantly shape your Anchorage home-buying experience. Even though many Alaska residents embrace that plucky, DIY spirit, this is one of those areas in which it pays to hire a pro.

A trusted real estate agent will assist you with things like:

• Targeting your search so you don’t waste your time with the wrong properties.
• Negotiating with the seller and their agent to come up with a final price.
• Helping you avoid common mistakes, thanks to their experience in the Anchorage real estate market.
• Referring trusted professionals, like home inspectors, who you’ll need along the way

Look for someone with deep experience in the Anchorage market. This type of local knowledge will allow your agent to guide you skillfully in terms of finding the right neighborhood, viewing the best properties, staying within your budget, and more.

Finally, consider choosing a REALTOR®. These professionals are members of a national association that requires continuing education and adherence to a specific code of ethics. Not all real estate agents are REALTORS, but the ones who do have demonstrated a commitment to their profession. In what can be a crowded profession, designations like this can help you distinguish between two front-runners.

Tip #4: Don’t Rely on Alaska Seller’s Disclosures

Like many of the lower 48 states, Alaska requires every seller to make a written disclosure. As you can see in this sample form from the Alaska Department of Commerce, Community, and Economic Development, sellers are required to list items such as property defects, repairs completed in the last five years, zoning code issues, and more.

While this will give you a good start, you should also order your own, independent home inspection. The results will either confirm the seller’s disclosure or alert you to additional problems. If you haven’t used a home inspector in the past, ask your Alaska real estate for a recommendation.

A couple of Anchorage-specific speedbumps to look out for:

Surviving the Winter: Insulation

As we mentioned earlier, utility costs in Alaska can be astronomical. When you’re buying a home, be aware how well your potential new residence is equipped to survive the winter. For example, will you be cranking the heat constantly because your house isn’t well insulated? A little attention to this area—and a few potential investments on your part—can save you significant money down the road.

Radon Risks in the Last Frontier

The EPA recommends that all homes in Alaska be tested for radon, a gas with no odor that can raise the risk of lung cancer. Sellers are required to disclose known environmental hazards like radon. However, it might be worth doing your own test, just to make sure.

You can find out more about Alaska radon risks and testing on the Department of Natural Resources Geological & Geophysical Surveys website.

The 2018 Earthquake

More than 750 homes in the Anchorage area were damaged during a magnitude 7.0 earthquake on November 30, 2018. Ask your inspector to look for any undiscovered damage that may have occurred during the earthquake.

Tip #5: Research Movers to Make an Easy Transition to Your New Home

Some Alaska residents prefer to move themselves. However, hiring movers will make your transition to your new home in Anchorage much simpler—especially if you’re moving from out of state. (Read this before doing a DIY move to Alaska!)

Before hiring movers, we always recommend getting three, independent quotes to get a good sense of the going rate. Our list of the best movers in Anchorage will help you kickstart your research.

Finally, let’s talk a little about the Anchorage lifestyle you can expect after making your move.

What Is There to Do in Anchorage?

As you’re making final decisions on your Anchorage home, you might wonder what living in the area will look like. To help you start to envision your new life in Anchorage, check out a few of our other articles below:

If you’re looking for a professional moving crew to make your transition to Anchorage easy, we hope you’ll consider the Royal Alaskan Movers team. We’ve helped countless individuals and families with safe, affordable, and stress-free moves to Anchorage.

Get started today with a complimentary quote for your Anchorage move.