Department of Numbers

Alaska Home Affordability

The data below quantifies Alaska home affordability by using home prices and home price indices to calculate price-to-income and price-to-rent ratios.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Alaska home affordability to other states.

Alaska Home Price-to-Income Ratios

The home price-to-income ratio for Alaska comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Alaska annual median household income data. The FHFA home price series yields a dollar ratio (top chart) while the index results in an index ratio (bottom chart). Based on the latest FHFA state home prices in June 2010, the price-to-income ratio for Alaska was 4.15.

Home Price-to-Income Dollar Ratio: FHFA

Chart of Alaska home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of Alaska home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Alaska Home Price-to-Income Ratio History

Date FHFA
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 145.9
September 2013 145.6
June 2013 145.2
March 2013 143.4
December 2012 142.4
September 2012 141.2
June 2012 141.0
March 2012 135.4
December 2011 155.1
September 2011 154.6

Alaska Home Price-to-Rent Ratios

The price-to-rent ratio for Alaska is determined for both the FHFA median price and the purchase only index by calculating a ratio with the median contract rent. The price-to-adjusted rent value takes into account CPS reported household size to attempt to correct for quality differences in renter and owner occupied homes. More on that process here. Again, the median price ratio is a dollar ratio and the HPI ratio is an index ratio defined to be 100 in Q1 2000. The adjusted price-to-rent ratio for Alaska was 19.83 in June 2010.

Home Price-to-Rent Dollar Ratio: FHFA, FHFA Adjusted Rent

Chart of Alaska home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of Alaska home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Alaska Home Price-to-Rent Ratio History

Date FHFA
(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 114.1
September 2013 113.9
June 2013 113.6
March 2013 112.2
December 2012 111.4
September 2012 110.5
June 2012 110.3
March 2012 105.9
December 2011 114.7

Alaska Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for Alaska and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from median household income and average monthly mortgage rates. The amounts are not adjusted for inflation.

Inferred Affordable Mortgage

Chart of Alaska maximum affordable home loan amount

Alaska Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $321,537
January 2014 $316,634
December 2013 $315,519
November 2013 $323,069
October 2013 $325,775
September 2013 $314,409
August 2013 $315,519
July 2013 $318,883
June 2013 $330,494
May 2013 $352,596
April 2013 $356,564
March 2013 $351,288
February 2013 $353,034

1. Specifically, Home prices are from the FHFA seasonally adjusted, purchase only quarterly series. Rent data is from the Census ACS and income is from the Census CPS. Rent and income data for the previous year is carried into the following year for calculations prior to release of new data.