Building New Homes Across Alaska

This article first appeared in the Spring 2025 edition of the Anchorage Home Builders Association "Building Alaska" magazine. 

Housing conversations are a trending topic nationwide with availability and affordability top-of-mind for prospective homeowners and industry professionals. As part of the 2025 capital budget, the Alaska Legislature and Governor Mike Dunleavy addressed this issue head-on allocating $7 million toward a New Home Construction Rebate to be managed by Alaska Housing Finance Corporation.

With the goal of increasing housing opportunities and housing inventory for Alaskans statewide, AHFC’s New Home Construction Rebate could support the construction of approximately 650 new homes. Participants building single-family residential homes, up to a fourplex, will be eligible for a rebate of $10,000 following completion of construction and the submission of required paperwork, including proof of a minimum 5-Star Plus or higher energy rating standard. Alaska Housing launched a similar consumer rebate program that was available from 2008 to 2016. During this timeframe, more than 3,600 energy efficient homes were built statewide.

Demand for housing across Alaska is extremely high with constrained supply and aging infrastructure being
a consistent challenge. In Anchorage, more than half of the city’s housing stock was built in the 1970s and 1980s. Smaller communities and rural areas in the state face even more drastic circumstances of aging and often dilapidated housing units. High construction and labor costs along with supply chain issues and land availability exacerbate the challenges.

“This rebate specifically targets the undersupply of new homes throughout Alaska and is a significant step aimed at jumpstarting new construction statewide,” says Bryan Butcher, CEO/executive director, AHFC. “This is a terrific opportunity to upgrade new inventory with innovative designs while simultaneously increasing the availability of more energy efficient homes.”

A Streamlined Process

The New Home Construction Rebate online application is simple and straightforward. AHFC anticipates a review and decision window of roughly 30 days once an application is submitted with all required documentation.

• Homes eligible for the rebate include those with foundations completed and inspected on or after Jan. 2, 2025.
• The online application is available at AlaskaHousingEnergy.us. After preliminary approval of the application demonstrating intention to build with a 5-Star Plus or higher energy rating standard, applicants will have 18 months to complete their work and submit supporting documentation.
• The building must be a single-family residential, up to a fourplex, and have a 5-Star Plus energy rating or higher energy rating standard. To qualify, the homeowner must live in one of the units as a primary residence.
• Participants will receive a 1099-G and should consult a tax professional for any tax consequences that result.

Energizing Alaska

As housing infrastructure in the state continues to age, the New Home Construction Rebate encourages new home builds while revitalizing existing properties.

To learn more and participate in the New Home Construction Rebate, as well as explore energy initiatives and other upcoming Alaska Housing opportunities, visit ahfc.us/efficiency to sign up for email updates.