Alaska, a state renowned for its vast expanse and sparse population, boasts a unique real estate landscape characterized by a high cost of living that surpasses even Hawaii. Understanding the dynamics of wealth and property values in this geographically distinct state requires a close examination of its most affluent areas. Utilizing Zillow’s Home Value Index and data from the Census Bureau’s 2023 American Community Survey, we delve into the most expensive ZIP codes in Alaska, offering insights into their economic profiles and recent trends in home value appreciation. This analysis considers both the latest monthly home values (November 2024) and a 12-month average of median home values spanning from December 2023 to November 2024.
While the national housing market experienced a surge in values following the pandemic-induced buying frenzy, Alaska’s most expensive ZIP codes exhibited a more measured and gradual appreciation. This contrasts with areas further down the price spectrum, which witnessed more dramatic increases in home values over the past five years. This analysis focuses on the top five most expensive ZIP codes in Alaska, exploring their geographic locations, median and average household incomes, and the trajectory of home value growth.
Topping the list is ZIP code 99516, encompassing the southeastern region of Anchorage and including communities such as Huffman/O’Malley, Rabbit Creek, Bear Valley, and Glen Alps. This area, characterized by its picturesque coastal setting, exhibits significant wealth, with a median household income of $160,341 and an average household income of $203,294, both significantly above national averages and even high for Alaska’s elevated cost of living. Home values in 99516 have experienced steady growth, appreciating by 23.9% from a median of $508,375 in November 2019 to $630,129 in November 2024. This consistent growth reflects the area’s desirability and strong economic foundation.
The second priciest ZIP code, 99540, is also located southeast of downtown Anchorage, bordering 99516 to the south. Centered around the community of Indian, but still within Anchorage city limits, this ZIP code stretches from Beluga Point to Bird Point. Interestingly, the median household income in 99540 is $82,969, lower than the state median, although the average household income reaches $103,370. Similar to 99516, home values in this area have experienced steady appreciation, increasing by 17% from $483,319 in November 2019 to $565,296 in November 2024. This suggests factors other than income, such as location and limited housing supply, contribute to the high property values.
Juneau’s expansive 99801 claims the third spot on the list. The presence of smaller pockets of high-value properties within this large ZIP code likely influences the overall average. Household incomes here, while above the national average, fall closer to Alaska’s statewide median, with a median of $101,141 and an average of $124,113. Home values in 99801 have seen a noticeable increase of 20%, rising from $407,936 in November 2019 to $489,328 in November 2024. This indicates a healthy real estate market influenced by Juneau’s role as the state capital and its unique geographical location.
Beyond the top three, an examination of the top ten most expensive ZIP codes reveals significant year-over-year growth in at least one area: 99572. This ZIP code, located in the Anchorage area and centered around Cooper Landing at the outlet of Kenai Lake, south of downtown Anchorage, saw an 11.1% increase in median home value from November 2023 to November 2024, reaching $463,151 from $416,930. Such rapid appreciation suggests increasing demand in this scenic area, potentially driven by its proximity to both urban amenities and natural beauty.
In summary, Alaska’s most expensive ZIP codes demonstrate a nuanced picture of wealth and property value appreciation. While areas like 99516 exhibit high incomes correlating with high property values, other areas, like 99540, suggest factors beyond income contribute to high housing costs. Juneau’s 99801 showcases the impact of location and the presence of high-value properties within a larger, more diverse area. The significant year-over-year growth observed in ZIP code 99572 highlights the dynamic nature of Alaska’s real estate market, influenced by a combination of factors including location, amenities, and economic conditions. The ongoing analysis of these trends provides valuable insights into the unique dynamics of Alaska’s housing market and its relationship to the broader economic landscape.
