Alaska Rents Rise 2.6% as Mortgage Costs Double

The average monthly rent for a two-bedroom unit plus utilities in Anchorage reached $1,720. This figure places the city among the most expensive rental markets in the state. Rents in Alaska’s largest city have increased for several consecutive years.

The statewide average rent increase was 2.6%, the smallest in the past five years. This data comes from the Alaska Economic Trends report released by the Anchorage Daily News. The report analyzes lease data from a spring survey of landlords and property managers.

Regional Rent Variations Remain Wide

Bethel recorded the highest rent at $2,030 per month, though it was slightly lower than the previous year. The Matanuska-Susitna Borough saw the fastest growth, with rents jumping 13% to $1,567. The Kenai Peninsula Borough rents rose 11% to $1,336.

Anchorage rents increased by only about 2% during the same period. This slow pace contributed to the muted statewide average. Most other communities in the state experienced similar modest increases.

Mortgage Costs Drive Rental Demand

The cost of a monthly mortgage payment in Alaska nearly doubled in recent years. The average payment hit $2,044 last year, an 84% increase from $1,110 in 2019. New mortgage applications fell by 21% over that same period.

Median home values rose by 41%, reaching $415,000 from just under $300,000. Median interest rates climbed from under 4% to 6.25%. In Anchorage, mortgage payments averaged $2,093, a 77% rise from 2019.

Wages and Inflation Shape Market Outlook

Average wages in Alaska grew by about 5% to nearly $75,000 in 2025. Higher incomes contribute to sustained demand for rental housing. The report notes that living alone has become more common, further increasing unit demand.

Inflation rates in the first half of 2026 were up nearly 3% year-over-year. This is the highest semiannual reading since early 2023. Rising energy costs for heating oil may add further pressure on rental prices next year.