Anchorage residential permitting increases following local zoning and tax changes

Anchorage is seeing an uptick in housing permits following recent changes to local zoning rules and municipal tax incentives, according to data presented at a Commonwealth North forum. Permitted dwellings in the municipality rose 33% from 2024 to 2025, with 2026 totals surpassing the previous year by August. In 2025, Anchorage permitted 234 multifamily units, its highest annual level in eight years, contributing to a statewide total of 2,261 new homes.

Bob Doehl, head of Anchorage’s Office of Community and Economic Development, reported that municipal code reductions and an expanded multifamily tax abatement accounted for 386 new units over two years. The municipality has also updated Title 23 to permit single-stair residential buildings up to six stories and temporarily suspended an apartment design mandate that builders estimated added 15% to construction expenses. Utility companies have also adjusted fees; Enstar now covers 50% of typical service line costs for new customers.

Despite the rise in permitting, real estate inventory remains constrained across the region. Economists and housing officials noted that high mortgage interest rates, elevated construction costs of $300 to $450 per square foot in urban centers, and an increase in single-person households continue to squeeze supply. Rental vacancy rates stood at 4.9% in Anchorage, 3.5% in the Matanuska-Susitna Borough, and 4.1% in Juneau during the spring survey period.