While most of the country has rebounded from the economic downturn started in 2008, Zillow Research indicates that Alaska has not. Home prices in the country’s largest state have remained essentially flat over the past five years.
The number of homes for rent in the state has doubled over the past year, but has remained flat nationwide, which is causing concern among Alaskans. Zillow attributes these trends to the fact that Alaska’s housing market is tied to the ups and downs of the oil industry, which is currently producing less oil.
Although the Alaskan housing market experienced a modest recovery between 2012 and early 2014, it has been noticeably flat compared to the rest of the country. Since February 2012, the median home value in the United States has increased 19%, while the median home value in Alaska has risen only 7%. Over the same period, the median home value per-square-foot has increased 17% nationwide, but only 4% in Alaska.