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How Much Does it Cost to Build a House in Alaska? AK 2023

How much does it cost to build a house in Alaska? This is a question that many people are asking, as the state has been experiencing an economic boom in recent years. The good news is that, according to the latest data, it costs less to build a house in Alaska than in most other states.

In this article, we will break down the cost of building a house in Alaska by region and give you an idea of what you can expect to pay. We will also provide tips on keeping your construction costs down. So, if you’re thinking about becoming a homeowner in AK, read on!

How Much Does it Cost to Build in Alaska?

In 2023, the average cost of building a new house in Alaska will range from  $200,000 to $250,000. This cost includes both the price of the land and the cost of construction.

The most expensive region to build a house in Alaska is Anchorage, where the average cost is $300,000. The least expensive region is Southeast Fairbanks, where the average cost is $175,000.

Of course, these are just averages. The actual cost of building a house in Alaska will vary depending on the size and location of the property, as well as the quality of materials used.

Alaska House Building Cost Summary

On the basis of what we have calculated below, the typical cost of building a house in Alaska in 2023 could be approximate as follows:

Alaska House Building Cost SummaryPrice
Building Permit Fees$500 – $2000
Construction Cost (per square foot)$100 – $200
Land Cost$50,000 – $500,000
Material Cost$10,000 – $50,000

As you can see, the cost of building a house in Alaska is quite expensive. However, there are ways to keep your costs down. For example, you may be able to get a discount on the price of land if you buy in bulk. Additionally, using lower-cost materials can also help reduce the overall construction cost.

Cost Summary for Different Types of Houses in Alaska

Different kinds of houses are available in Alaska. Like any other place, the cost of building a house in Alaska also depends on the type of house you want to build.

The table below shows an estimate of how much it would cost to build different types of houses in Alaska:

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Type of House Cost to BuildPrice
Custom Home$400,000
Semi-Custom Home$350,000
Manufactured Home$250,000
Stick-Built Home$200,000 – $300,000

As you can see, the cost of building a custom home is the most expensive. If you want to build a less expensive home, you may want to consider a manufactured or stick-built home.

Keep in mind that these costs are only estimates. The actual cost of building a house in Alaska will vary depending on the size and location of the property, as well as the quality of materials used.

House Building Cost by Size in Alaska, Ak

House building cost vastly depends on the size of the house. The table below gives an estimate of house building costs in Alaska by size:

Size of the HouseAverage CostHighest CostLowest Cost
800 sq ft$198,000‬$256,000$130,000
1,200 sq ft$292,000$400,000$190,000
1,600 sq ft$376,000$510,000$250,000
2,000 sq ft$470,000‬$650,000$310,000
2,400 sq ft$574,000‬$778,000$390,000
2,800 sq ft$668,000‬$900,000$430,000
3,200 sq ft$752,000‬$1,074,000$490,000
3,600 sq ft$846,000‬$1,182,000$540,000
4,000 sq ft$1,034,000$1,408,000$660,000‬
4,800 sq ft$1,138,000‬$1,586,000‬$730,000
5,200 sq ft$1,416,000‬$1,832,000‬$850,000‬
5,600 sq ft$1,510,000‬$1,990,000‬$910,000‬

As you can see, the cost of building a house in Alaska varies depending on the size of the house. The larger the house, the more expensive it will be to build.

House Building Cost in Top Cities or Towns in Alaska

Some popular cities with high housing demand are  Anchorage, Juneau, Fairbanks, Badger, Homer, Palmer, Kenai, and Wasilla. The cost of building a house in these places is given below:

Cities or TownPer Sq Ft CostAverage CostHighest CostLowest Cost
Anchorage$140$290,000$500,000$100,000
Juneau$200$400,000$700,000$200,000
Fairbanks$160$320,000$600,000$100,000
Badger$120$240,000$400,000$50,000
Homer$180$360,000$650,000$150,000
Palmer $110$220,000$350,000$75,000
Kenai$115$230,000$400,000$80,000
Wasilla$130$260,000$450,000$120,000

As you can see from the table, the cost of building a house in Alaska’s popular cities varies depending on the city. The average cost of building a house in Anchorage is $290,000 while the average cost of building a house in Homer is $360,000.

Three Major Cost Factors Break Down in Alaska (AK) 2023

Here are some of the most common co-factors that affect homeowners in Alaska:

  • Pre-Building Cost Factors
  • In Building Cost Factors
  • Post Building Cost Factors

1. Pre-Building Cost Factors

Before starting the building process there are some preliminary costs that must be taken into account such as:

  • Cost of the lot or land where the house will be built
  • Cost of permits and other fees
  • Cost of hiring a professional architect or designer

These are just some of the pre-building cost factors that must be considered before starting to build a house in Alaska.

Cost of the lot or land where the house will be built

The cost of the lot or land where the house will be built is one of the most important pre-building cost factors. The price of the land will vary depending on the location. If you want to build a house in a remote area, it will cost more than building a house in a city.

Cost of permits and other fees

Another important pre-building cost factor is the cost of permits and other fees. The cost of permits varies depending on the type of permit. For example, a building permit costs more than a zoning permit.

Cost of hiring a professional architect or designer

If you want to hire a professional architect or designer, it will cost more than if you build the house yourself. The cost of hiring a professional architect or designer varies depending on the experience of the architect or designer.

2. In Building Cost Factors

There are also some building cost factors that must be considered such as:

  • Cost of materials
  • Cost of labor
  • Cost of equipment rental
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These are just some of the in-building cost factors that must be considered before starting to build a house in Alaska.

Cost of materials

The cost of materials is one of the most important buildings cost factors. The type of material you use will affect the cost of building your house. It will cost more than lower-quality materials if you want to use high-quality materials.

Cost of labor

Another important building cost factor is the cost of labor. The cost of labor varies depending on the type of worker you hire. For example, a carpenter costs more than a mason.

Cost of equipment rental

If you need to rent equipment, it will cost more than if you own the equipment. The cost of renting equipment varies depending on the type of equipment you need to rent.

3. Post Building Cost Factors

There are also some post-building cost factors that must be considered such as:

  • Cost of utilities
  • Cost of insurance
  • Cost of property taxes

These are just some of the post-building cost factors that must be considered before starting to build a house in Alaska.

Cost of utilities

The cost of utilities is one of the most important post-building cost factors. The type of utility you use will affect the cost of building your house. For example, using electric heat will cost more than using natural gas.

Cost of insurance

Another important post-building cost factor is the cost of insurance. The type of insurance you buy will affect the cost of building your house. If you want to ensure your house for its replacement value, it will cost more than if you insure it for its market value.

Cost of property taxes

The cost of property taxes is another important post-building cost factor. The amount of property tax you pay will vary depending on the value of your property. If your property is worth more, you will pay more in property taxes.

Top 7 Best Quality Home Builders in Alaska 2023

There are several companies in the market that offer their home building services in Alaska, but not all of them can be trusted to provide the best quality homes. These are the seven best quality home builders in Alaska that you can trust:

  1. Alaskan Dream Homes
  2. Arctic Star Construction
  3. Denali Home Builders
  4. Frontier Building Company
  5. Glacier View Construction
  6. High Country Log Homes
  7. North Star Construction

These are the seven best quality home builders in Alaska that you can trust to provide you with a high-quality home. If you plan to build a home in Alaska, contact one of these companies for a quote.

Estimated cost to build a house in Alaska

Depending upon the construction grade, the cost of building a house in Alaska can range from $80 to $200 per square foot.

  • Grade I: If you want your home to be built with the best quality materials and construction, it will cost you around $200 per square foot.
  • Grade II: If you are looking for a good-quality home but do not want to spend too much, it will cost you around $140 per square foot.
  • Grade III: If you are looking for a home of average quality and do not want to spend too much, it will cost you around $100 per square foot.

These are the estimated costs of building a house in Alaska, depending upon the construction grade. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

Hiring a Housebuilder In Alaska Costs

You should consult and hire a home builder before starting to build your house in Alaska. The cost of hiring a home builder in Alaska varies depending on the size and type of project you want to undertake.

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– Small projects: If you are looking to hire a home builder for a small project such as building a deck or porch, it will cost you around $50 per hour.

– Medium projects: If you are looking to hire a home builder for a medium project such as building an addition to your house, it will cost you around $75 per hour.

– Large projects: If you are looking to hire a home builder for a large project such as building a new house, it will cost you around $100 per hour.

These are the estimated costs of hiring a home builder in Alaska depending on the size and type of project. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

An Approximate Cost to build a house in Alaska

As per municipal data, the median cost to build a house in Alaska is $237,000. The average price per square foot is $100.

For building a 1,700 square foot house, you have to spend around $170,000 on the structure of the house and $67,000 on finishing. The material cost to build a house can be around  $80 to $200 per square foot.

Alaska’s land cost is around $15,000 to $50,000 per acre. The average price of a lot in Alaska is $42,500.

If you want to add a garage to your house, you have to spend an additional $20,000.

The cost of permits in Alaska is $500 to $800.

These are the approximate costs of building a house in Alaska. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

Cost to Build Mid-rise, high-rise, and commercial buildings in Alaska

The cost of building a mid-rise building in Alaska is around $350 to $450 per square foot. A high-rise building in Alaska costs around $500 to $700 per square foot.

A commercial building in Alaska costs around $300 to $400 per square foot. These are the approximate costs of building different types of buildings in Alaska. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

Types of houses in Alaska and their cost

The cost of building a house in Alaska varies depending on the type of house you want to build.

1. Single-family houses: The cost of building a single-family house in Alaska is around $80 to $200 per square foot.

2. Multi-family houses: The cost of building a multi-family house in Alaska is around $100 to $300 per square foot.

3. Commercial buildings: The cost of building a commercial building in Alaska is around $300 to $400 per square foot.

These are the approximate costs of building different types of houses in Alaska. Be sure to contact a home builder

Labor Cost of Building a House in Alaska

Qualified and experienced labor is very much needed to build your house fastly. There are several types of labor needed in the house building project.

These are the typical labor costs of building a house in Alaska:

Labor NamePrice
Carpenters$70 to $80 per hour
Masons$60 to $70 per hour
Electricians$65 to $75 per hour
Roofers$70 to $80 per hour
Plumbers$65 to $75per hour
HVAC$70 to $80 per hour
Painters$60 to $70 per hour
Framer Cost$70 to $80 per hour
Cost of other miscellaneous labor$60 to $70 per hour
Construction Manager$75 to $85 per hour
Cost of project superintendent$85 to $95 per hour
Architect & Structural Engineer$120 to $130 per hour
Land Surveyor Cost$50 to $60 per hour
Soil Test$500 to $2,000
Permits$500 to $800
Landscape Architect$120 to $130 per hour
Land Excavator And Grading$35,000 to $100,000
Tree Removal Cost$500 to $2,500
Concrete Contractor$75 to $85 per hour
Paving Cost$6 to $12 per square foot
Fencing Cost$15 to $30 per linear foot
Deck Cost$15 to $35 per square foot
Asphalt Cost$5 to $10 per square foot
Gravel Cost$20 to $60 per ton
Landscaping Cost$500 to $5,000
Sprinkler System Cost$2,500 to $5,000

Note that these are only the approximate costs of labor in Alaska. The actual cost may vary depending on the type and size of your project. Be sure to contact a home builder in Alaska to get an accurate quote for your project

Materials Cost of Building a House in Alaska

The cost of materials is one of the biggest factors that affect the cost of building a house in Alaska.

materialsCost
Lumber$300 to $400 per thousand board feet
Concrete$100 to $150 per cubic yard
Windows$200 to $400 per window
Doors$100 to $300 per door
Drywall$40 to $60 per sheet
Paint$30 to $50 per gallon
Shingles$100 to $200 per square
Brick$300 to $600 per thousand
Insulation$1 to $2 per square foot
Plumbing$50 to $250 per fixture
Electrical$200 to $1,000 per fixture
Heating and Cooling$2,500 to $5,000 per unit
Framing$15 to $25 per square foot
Siding$5 to $10 per square foot

These are only the approximate costs of materials in Alaska. The actual cost may vary depending on the type and size of your project. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

Interior Finishings in Alaska

The cost of interior finishings is another big factor that affects the cost of building a house in Alaska.

InteriorPrice
Flooring$5 to $10 per square foot
Carpeting$15 to $25 per square foot
Tile$10 to $20 per square foot
Cabinets$200 to $1,000 per linear foot
Countertops$30 to $70 per square foot
Paint$30 to $50 per gallon
Fireplace Installation$1,500 to $5,000
Built-in Bookcases$800 to $1,200 per linear foot
Drywall Installation$1.50 to $2 per square foot
Baseboards and Crown Molding$2 to $4 per linear foot
Appliance Cost$500 to $2,000 each
Bathtub Cost$500 to $5,000
Sink Cost$100 to $1,000
Toilet Cost$150 to $500
Faucet Cost$100 to $1,000
Mirror Cost$50 to $200
Lighting Cost$100 to $2,000
Ceiling Fan Cost$50 to $200

These are only the approximate costs of interior finishings in Alaska. The actual cost may vary depending on the type and size of your project. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

Other Costs of Building a House in Alaska

You need to consider other costs when building a house in Alaska.

Site preparation cost$2,500 to $5,000
Septic system cost$5,000 to $10,000
Water system cost$500 to $2,500
Well Cost$3,000 to $5,000
Driveway Cost$1,000 to $3,000

Be sure to contact a home builder in Alaska for an accurate quote for your project.

Tips to keep your construction costs down in Alaska

Here are some 20 tips to keep your construction costs down:

  • Purchase land in a less expensive region such as Southeast Fairbanks. 
  • Consider building a smaller home. The average cost per square foot is lower for smaller homes.
  • Use low-cost materials such as vinyl siding and laminate countertops.
  • Do some of the work yourself such as painting and installing flooring.
  • Shop around for the best prices on materials and labor.
  • Avoid building during the winter when prices are typically higher.
  • Get multiple bids from contractors to ensure you’re getting the best price.
  • Invest in energy-efficient features such as solar panels and insulation.
  • Choose a simple floor plan with a few corners and walls.
  • Work with an experienced contractor who has a good reputation.
  • Have a realistic budget and be willing to compromise on some features.
  • Be aware that the cost of living is higher in Alaska than in other states.
  • Use prefabricated or modular components to save on construction costs.
  • Purchase materials in bulk to get discounts from suppliers.
  • Landscaping can be done after the house is built to save on costs.
  • Wait to install high-end finishes until after the house is built.
  • Furnishings can be added slowly over time to save on up-front costs.
  • Use a construction loan to finance your project and avoid paying interest.
  • You may be eligible for tax breaks or other incentives when building in Alaska.

FAQ

Is it usually cheaper to build or buy a house in Alaska?

It is usually cheaper to build a house in Alaska because the cost of materials and labor are much lower than in most Lower 48 states.

How much does it cost to build a cabin in Alaska?

It really depends on the size and type of cabin you want to build. If you’re looking for a small, basic cabin, you can probably get away with spending around $10,000.

However, if you want a more luxurious cabin with all the bells and whistles, your costs could easily exceed $100,000. So it depends on what cabin you’re hoping to build.

Conclusion

The cost of building a house in Alaska is around $300 to $400 per square foot. The actual cost may vary depending on the type and size of your project. Be sure to contact a home builder in Alaska to get an accurate quote for your project.

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