ANCHORAGE, Alaska (KTUU) - The Anchorage Assembly has granted property tax exemptions for subdivided properties prior to sale, hoping to spark development and more real estate activity.
According to Spinell Homes, Inc., Anchorage is steadily losing home buyers to the Mat-Su Valley, where development costs and property values are much lower. The Valley is beginning to outpace Anchorage in new homes sold, selling 313 to Anchorage's 152 in 2018.
Home builders asked the Municipality for a tax break for developing subdivided properties, citing a need to be competitive with their rapidly expanding neighbors. According to Spinell Homes owner Andre Spinelli, this should reduce building costs, and ultimately the cost of homes.
“Incentives like this will show a sign of support for development by the Municipality," Spinelli wrote in a letter to the Assembly. "It will also increase the odds that the developer chooses to take the risk and make the investment to subdivide land and build the required infrastructure in the Municipality, making way for future homes and an increased tax base.”
Assembly member Christopher Constant says the city is pushing development of more affordable homes so future families can look towards Anchorage for a place to call home.
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