Anchorage Housing Projects Have Begun Amid New Incentives

Private developers are leveraging new municipal tax abatements and code revisions to add much-needed residential inventory.

Updated on Sept. 30, 2026 in Construction

Bold flat-color editorial illustration of a steel building frame against a plain background, representing municipal housing development. — Private developers in Anchorage have launched new residential housing projects, aided by municipal tax incentives to address a decade-long inventory shortage. AI Illustration. Upload story photo >

Live Poll

Do you support using tax breaks to encourage private developers to build more local housing?

Private developers have launched new residential projects across Anchorage after the city assembly approved tax incentives to spur construction. These initiatives aim to address a municipal housing deficit estimated at 9,600 units over the next decade.

Why it matters

The city faces a significant shortage of available housing types that was previously exacerbated by regulatory burdens and project costs. New tax exemptions and land-use code revisions are designed to make development economically viable for private builders.

Developers are now building 58 market-rate townhomes in Southwest Anchorage and renovating a vacant Spenard building into eight residential units and two commercial spaces. The city has authorized property-tax exemptions ranging from 10 to 28 years to facilitate these projects.

The players

Anchorage Assembly

This is the primary legislative body for the Municipality of Anchorage responsible for enacting land-use policy and tax code adjustments.

Debenham LLC

This private development firm is currently constructing 58 market-rate rental townhomes in Southwest Anchorage.

St. Mary's Episcopal Church

This local religious organization is planning a $50 million housing development project on its campus to serve 120 families.

Eight Stars Enterprises

This company is leading the renovation of a formerly vacant building in Spenard into new housing and commercial spaces.

The details

Projects include the Raspberry Townhomes and a St. Mary's Episcopal Church development expected to house 120 families near Tudor Road and Lake Otis Parkway. The municipality is also clearing obstacles for private builders by abating prior penalties on distressed properties and modernizing Title 21 land-use codes.

April 22, 2025: Assembly approved AO 2025-35(S-1) multifamily tax incentives.
August 12, 2025: Assembly created 10-year tax exemption for vacant property renovations.
Fall 2027: Expected completion of Raspberry Townhomes development.

Market Landscape

These projects represent a pivot toward high-density residential development spurred by recent amendments to the Anchorage Title 21 land-use code. By lowering the financial barrier to entry, the city is positioning itself to compete for private developer interest against regional constraints.

Residents can expect a gradual increase in available market-rate and family housing stock as these projects reach completion. These incentives are intended to stabilize the local market, potentially tempering the long-term housing deficit and associated rental pressure.

The takeaway

The move demonstrates a strategic shift toward using municipal tax policy to bridge the gap between private development costs and community housing needs. Successful completion of these units is essential for the city to reach its goal of 9,600 new or renovated residences over the next decade.