Building New Homes Across Alaska

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 four-plex, 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 energy rating 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 will be 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 four-plex, 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

In addition to its New Home Construction Rebate opening in January 2025, Alaska Housing Finance Corporation is also poised to launch several federally funded energy programs later this year, including $74.6 million in home energy rebates to improve existing homes. 

• Alaska’s Home Efficiency Rebate will provide whole-house energy-saving retrofits in single-family and multi-family buildings. 

• Alaska’s Home Electrification & Appliance Rebate will provide consumer discounts on the purchase of certain high-efficiency electric home appliances and certain home electrical upgrades, insulation and air sealing.

• A statewide-residential program through Solar for All will provide low- to moderate-income households subsidized solar installations for utility grid-connected households where net metering applies.

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

To learn more and participate in the New Home Construction Rebate, and other upcoming Alaska Housing opportunities, visit ahfc.us to sign up for email updates.