The borough assessor’s office watches real estate sales trends. And like elsewhere in Alaska and the country, home prices have gone up. Borough Mayor Bryce Ward says property owners will see that reflected in their assessment notices that were just mailed out.
We have seen a pretty significant increase in values over the last year, based on the market conditions. and we're seeing around a 10% increase for residential values.
The average home value in the borough went from $273,000 to $304,000 – about 11%. There are neighborhoods near schools or where homes have been well-maintained that are in a hotter market and may have values that have gone up 15%.
Um, we're potentially seeing as high as 15% for commercial properties. And again, this is based on what we've seen for active sales over the last year.
The market is constrained with not enough supply. There is not enough affordable housing, which tends to mean high-density buildings with 5 or more units. Most in the borough are from the Pipeline Era population boom.
In the city of Fairbanks and the city of North Pole, five-unit and greater developments have really not been built over the last 20 to 30 years. The last time we saw a large number of these developments being built was back in the 1970s and the early 80s.
and Ward says changing demographics are shifting to need more senior housing.
“The senior needs assessment that was done in 2019 called for an additional 150 units between 2020 and 2025.”
And there’s an immediate press around Eielson Air Force Base. The area is at the tail end of population growth connected to the F-35 fighter jet squadrons being moved to Eielson. All those folks will have arrived in Alaska by this April.
“But the next thing that's on the horizon is the KC 135s. That's an additional four Stratotankers and an active association to Eielson Air Force Base, which brings 220 to 250 additional personnel.”
The KC-135 deployment is expected to bring another 500 people to the area.
An ordinance on the Borough Assembly’s agenda Thursday night will allow for a short-term tax exemption for new multi-family housing in North Pole.
The City of North Pole has been designated by the state as a Military Facility Zone, or MFZ. It means builders can incentives like better terms on construction loans.
The borough ordinance adds another. It will give builders and homeowners a property tax reprieve for 2-5 years, depending on how the property helps economic development in the area.
A draft of the ordinance is on the borough website.
The Mayor reminds folks getting an increase in assessed value doesn’t mean they will get a tax increase. The administration put out a short video about it. Ward says he’s looking to put downward pressure on the mill rate.
When we look at things like the tax base increasing by roughly 10%, we look at the cost of doing business in the borough, which has not increased that same amount. What it means is a Delta, which allows us to be able to push down that rate.
Chief of Staff Jim Williams says homeowners can come to the assessor’s office to make sure their property was correctly valued, but do it quickly. There is a March 4 deadline for appeals.
