Around 75% of Alaskas homes were built between 1970-1990. These homes are now reaching 40+ years old and they are aesthetically and functionally depreciating. In addition to normal wear and tear, Alaskan homes undergo severe weather patterns and cold temperatures that age the home more rapidly. With the majority of Alaskas homeowners in these older homes, many of them are looking to renovate and sell. But where are they going to relocate? Anchorage is running out of lots to build on, and new construction homes are not built fast enough match demand in housing stock. Try as they might, Alaska home building only produced a staggeringly low number of 200 homes in 2017, when at least 900 are needed to meet demand. According to a recent article in the Anchorage Daily News, more and more Alaskans are forced into cramped and low quality living situations to cope with low housing stock.
So how does this affect you as a homeowner?
In recognition of this housing problem, the Alaska Housing Finance Corporation provides three renovation options for homeowners:Purchase RenovationThis loans occurs concurrently with the purchase of a home. Second for RenovationThis loan involves improvements to a home you already own. Probably the most beneficial for current homeowners in Alaska who are facing the challenge of owning a home built 1970-1990.- Loan up to $100,000 w/alternative evaluation- Loan up to $318,075 w/appraisal Refinance RenovationIncorporates renovations into new loan.
Under the loan qualifications for AHFC, applicants must be Alaskan residents in an owner-occupied home. All renovations must be done by a licensed contractor or qualifications of the borrower to do such work must be provided.
Not only will renovating your older home improve Alaskas aging housing stock, it can also increase your homes value and improve energy efficiency. Rather than trying to squeeze hundreds of new homes in Anchorages limited lot space, renew your homes life and worth by renovating.