Best Cities in Alaska to Buy Property: What to Know

By
Real Estate Agent

The average cost of a home in Alaska is just over $310,000, meaning that while the property value is appreciating, it's lower than the average property value in most of America.

If you're thinking of looking for houses in Alaska for sale, you're probably thinking about where to buy that will make for a good investment. The good news is that even if the property value is lower in Alaska, you can still invest well.

The key to getting a good ROI is buying a home in one of the best cities in Alaska. These are the cities that see regular population growth, offer ample job opportunities, and ultimately attract plenty of buyers.

Which cities in Alaska offer the best property investments? Read on to find out.

Do You Really Need to Think About ROI When Buying?

Whether you're buying your first home or investing in a second or third property, you might be wondering: does ROI really matter? Even if you're not intending to sell anytime soon, it is still beneficial to consider your return on investment when purchasing a home in Alaska.

Nowadays, the average length of homeownership is about ten years. In other words, most people don't remain in the home they've purchased for more than ten years. This tells us two things.

The first is that whether or not you expect to now, there's a good chance that you'll be saying, "I want to sell my house," at some point in the future. It also means that a lot of homeowners don't spend long enough in their homes to see a massive appreciation in property value.

The best way to protect your investment, then, is to buy a property in an Alaskan city that tends to see steady appreciation in property values. That way, even if you don't make a fortune, you'll still see some money back in your pocket.

The Best Cities in Alaska for Property Investment

So, where should you purchase a home in Alaska? Which cities boast the best property values and attract the most homeowners? Let's take a closer look.

Anchorage

Anchorage is one of the best cities in Alaska for young people and families. Anchorage isn't the biggest city in Alaska, but it does offer some of the most job opportunities in the widest array of industries.

Anchorage also has one of the most consistent home value appreciation rates in Alaska. This isn't too surprising when you consider that the supply of homes for sale in this mid-sized city can be on the lower side. That means that while it can prove difficult to find a house for sale in Anchorage, it will prove easy to sell a house in Anchorage at a nice price.

Eagle River

Whether or not you've purchased a home before, you're probably familiar with the value of metropolitan suburbs. Safe family neighborhoods situated on the outskirts of a city--in this case, Anchorage--have a lot to offer. It's easy for the employed household members to commute to the city while the youngsters can enjoy the safety and ample space of their own neighborhood.

All of that said, it's unsurprising that Eagle River is another great city in Alaska for property investors. Eagle River homes see a home value appreciation rate that is comparable to that of Anchorage. Plus, you may find that it's easier to purchase a home--new or existing--outside of the city.

Homer

If you know any lifelong Alaskans, you've probably heard of Homer already. Homer is one of the most beloved cities in Alaska and it attracts a lot of vacation-goers and new residents, alike. However, it's important to recognize that unless you're a professional angler, Homer is better-suited to retirees than working people.

Homer is a somewhat rural fishing community with some of the best opportunities for outdoor adventuring in the state. Homer boasts glaciers, mountains, and ocean views. To make matters even better, Homer's average annual precipitation is on the low end for Alaska, which means you can enjoy all the views without the constant cloud cover.

Soldotna

Are you looking for a well-priced property in a rural area known for its beauty? Soldotna is one of the more unusual options on our list of best cities in Alaska for property investment. The truth is that while the home value appreciation rate isn't the highest, Soldotna still offers a unique investment opportunity.

One of the biggest hardships for rural Alaskan residents is the high price of goods. Oftentimes, rural Alaskan cities offer few stores that have to pay steep importing prices and can resell those goods at an even steeper rate. In Soldotna, there are plenty of opportunities to shop and a robust summer tourist season, keeping the cost of living on the lower end--and the property value on the higher end.

Wasilla

Last on the list is Wasilla, another suburban city (at least by Alaskan standards) that offer a few key advantages. If you've heard of Wasilla before, it's likely due to the fact that it's the hometown of a former Vice Presidential candidate. However, it has more to offer than this claim to fame.

Wasilla is located about 45 minutes outside of Anchorage. As a result, it does attract quite a few Anchorage workers who don't mind the semi-lengthy commute. Unlike Eagle River, Wasilla also offers natural features that make residents feel like they're much farther from the city than they actually are.

Choose Your Next Alaska Home Wisely

No matter where you're thinking of buying a home, it's important to think about your next property as a true investment. If you're heading to Alaska, consider buying a home in one of these best cities in Alaska for home value appreciation.

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