It costs anywhere from $300,000 to $725,000 to build a custom home in Alaska. And that’s just for construction! Land costs can add a hefty $7,000 to $100,000 per acre. Let’s not forget about the rising costs of permits, materials, and labor fees.
In contrast, buying a new construction home in the Last Frontier State is a faster and more cost-effective option. With an 8.3% increase in inventory in October 2024, now is the perfect time to find your dream home!
Cost Breakdown of Building a Home in Alaska
The average house size in Alaska is 1,910 square feet. Here is a cost breakdown:
| Cost Head | Average Costs |
| Land Cost | $7,000 – $100,000 |
| Water and Sewer Inspections | $339 – $400 fixed |
| Building Permits | $1,500 – $5,000 |
| Foundation | $7.67 – $8.54 per sq ft |
| Framing | $13 – $40 per sq ft |
| Exterior Siding | $4.00 – $9.80 per sq ft |
| Roofing | $200 – $2,300 per 100 sq ft |
| HVAC | $5,000 – $6,000 |
| Plumbing | $91 – $100 per hour |
| Electrical | $170 – $190 per sq ft |
| Drywall | $2.09 – $2.20 per sq ft |
| Painting | $0.80 – $1.60 per sq ft |
*Source: ProMatcher
What Is the Cost Per Square Foot to Build a House in Alaska?
Alaska home construction costs depend on the square footage and number of bedrooms in your home:
Material Cost of Building a House in Alaska
You can expect to spend about 50% of the total per square foot cost ($300) on material costs. Here are the material expenses you need to consider to build your home in Alaska:
- Framing Materials: Foundation, lumber, and steel beams will require about $700 to $1,000 per thousand board feet.
- Roof Installation: The roofing cost depends on the type of material you select, the roof’s slope, and the size of your home. Here are the Alaska home roofing prices per square foot for various materials:
- Exterior Finishes: Prices may vary based on your choice of exterior. On average, it ranges from $33 to $50 per square foot.
- Insulation: Fiberglass, drywall, and foam insulation help regulate the temperature inside your home. It costs $1.50 to $1.60 per square foot for the fiberglass or cellulose installation.
- Windows & Doors: If you hire a professional to install windows and doors, it will cost from $460 to $630. If you go DIY, it will be up to $10,000.
- Flooring Materials: The cost of wood flooring installation in Alaska ranges between $8 and $13 per square foot.
- Cabinets & Countertops: Features like granite countertops and teak wood cabinets in kitchens may cost between $52 and $60 per square foot.
- Plumbing Fixtures: The cost to install sinks, faucets, showers, and PVC pipes throughout a home is between $91 and $103.
Labor Cost to Build a Home in Alaska
A contractor can help you hire laborers and professionals for the construction process. Their work and associated costs include:
| Professionals | Hourly Rate |
| Flooring Installers | $47.44 |
| Roofers | $30.74 |
| Painters | $24.50 |
| Brick Masons | $28.33 |
| Landscapers | $20.09 |
| General Contractors | $25.27 |
| Plumbers | $40.75 |
| Carpenters | $30.71 |
| HVAC Technicians | $36.18 |
| Structural Engineers | $38.51 |
| Electricians | $43.15 |
*Source: Indeed.com
What Are the Indirect Costs to Build a House in Alaska?
Indirect costs are incurred before the construction starts or after you move into the house. They include land costs, permit costs, interiors, etc.
1. Land Acquisition Costs: $7,000 to $100,000 Per Acre
Before you build your house in Alaska, you need to shop for land. The costs are:
- Purchase Cost: The average price per acre in Alaska is $62,200. This depends on the size and location of the land.
- Preparation Cost: You must clear and level the land before the construction. This can cost anywhere between $5,000 and $30,000.
2. Alaska Home Building Permit Costs: $500 – $6,000
The cost per square foot to build a home in Alaska includes permit fees. Construction or building permits are legal documents that authorize the construction process.
Permit costs and building codes are usually based on the construction type, occupancy type, home building area, and project scope. Some permits you may need, along with their average costs, are:
- Building Permit: $500 to $2,000
- HVAC Permit: $100 to $250
- Plumbing Permit: $100 to $500
- Electrical Permit: $100 to $500
3. Home Interiors: $33 to $70 Per Square Foot
Before you move into your new home, you’ll need furniture, electronics, kitchen appliances, and bathroom essentials.
The costs will depend upon your preferences and the quality of the finish. You should allocate 25% to 30% of your budget to interior renovations.
How Can You Finance Your Home Construction in Alaska?
1. Home Construction Loans
You’re required to have a high credit score (above 480) and enough cash to make a 10% down payment of the project cost.
The two most prominent home construction loans are:
- Construction-to-Permanent Loan: This loan covers land purchases and home-building costs. It is converted to a conventional loan after the construction is complete, and you move into the house.
- Construction-only Loan: It only covers the cost of home building. Your entire loan amount will be due after your home is ready. You can pay back the loan in cash or take out a mortgage.
2. Home Equity Loan
If you have home equity, you can finance some or all of your new home’s construction with a home equity loan.
Your home equity is the difference between your property’s fair market value and the remaining loan amount.
Is It Cheaper to Build or Buy a House in Alaska?
It is usually cheaper to buy a home than to build a new one. However, by building your own home, you have the freedom to customize it to your needs.
The price to build a house in Alaska is between $312,500 and $712,500. It can be more if you include land costs, excavations, permits, and other expenses. Moreover, new home construction can take up to 9 to 12 months.
On the other hand, you can buy a home in Alaska for $389,000. You can also easily find homes for sale in Alaska under 300k in 1.5 to 2 months. So, buying a turnkey home is not just cheaper but also faster in the current Alaska housing market.
Cost to Build vs. Cost to Buy in Alaska Cities
Let’s compare the cost to build a house and the cost to buy a house in Alaska’s most popular cities:
| City | Average Cost to Build (Including Land) | Average Cost to Buy |
| Anchorage ($270 per sq ft) | $910,000 | $420,000 |
| Fairbanks ($250 per sq ft) | $850,000 | $264,900 |
| Juneau ($200 per sq ft) | $700,000 | $529,000 |
*The average cost for cities has been calculated for an average-sized home of 3,000 sq ft.
Clearly, the cost to build a house is higher than the cost to buy one. If you buy a home for sale in Alaska, you can move in quickly and renovate it as you wish.
Disclaimer: The content in this blog post is for informational purposes only. It should not be construed as advice or recommendation. Houzeo does not provide any legal or financial advice. The figures mentioned in this blog post are the estimated average costs for the state/city in question. They are applicable as of the date the blog was written. Actual costs may vary depending on various factors, including location, specific building plans, materials used, labor costs, permits, and other local factors.
Please consult with local builders, contractors, and architects to obtain accurate and up-to-date pricing information for your specific project.
Frequently Asked Questions
What does it cost to build a house in Alaska?
It costs $300,000 to $725,000 on average, excluding the land cost. This will vary depending on location, property type, labor expenses, material costs, etc.
How much does it cost to build a house per square foot in Alaska?
Building a house in Alaska costs about $135 to $540 per square foot. Home-building costs depend on property type, construction area, labor costs, etc.
How much does it cost to build a 3-bedroom house in Alaska?
The average cost to build a three bedroom house in Alaska is between $450,000-$600,000.
How much is the cost per sq ft to build in Anchorage, Alaska?
The house construction costs in Anchorage can be about $270 per square foot. You can check the complete cost breakdown and plan your budget.
