Alaska's Unemployment Rate (Anchorage, Metlakatla: real estate, apartment, rental)

[Metlakatla]

How hard Alaska residents got hit by The Great Recession largely depended on where you were at and what industry you were in. And the rate varies wildly across the state. Right now, Juneau's even with the national rate, Sitka is a little lower,while Skagway is at something like 20 percent. You might think that Skagway is a depressed town, but the rate has more to do with over 80 percent of the workforce being seasonal and from out of state. It's that way in much of the state; the seasonals apply for unemployment with Alaska. Where I live, the rate is 11 percent, but there are jobs that aren't being filled.

[6.7traveler]

I read somewhere that the number of foreclosures in Alaska actually fell despite the job losses. I still don't think the prices here are anywhere close to being reasonable. As more job losses loom on the horizon hopefully the real estate market will be able to come down to more reasonable levels.

I'm not holding my breath though, Fairbanks just announced they have a housing crunch and need all these new apartments in FBX and NP to support all the new people coming for the f-35 programs. Everyone's crappy rundown house is still worth $200k+ for the foreseeable future it seems.

[Northrick]

I haven't looked at it, but I bet our unemployment rate is inversely tied to the price of oil. Price of oil goes up, unemployment goes down. Oil goes down, unemployment goes up.


We didn't get affected by the great recession nearly as much as the rest of the US for two reasons: 1) our real estate bubble wasn't nearly as big when things popped, and 2) the price of oil was at record highs back then.

[Metlakatla]

I thought oil crashed before The Great Recession started in earnest. It was at its highest during the summer of 2007; the same year that many of Alaska's commercial fishermen were having trouble paying their fuel bill due to inflated oil prices.

[rwjoyak]

Originally Posted by Metlakatla

I thought oil crashed before The Great Recession started in earnest. It was at its highest during the summer of 2007; the same year that many of Alaska's commercial fishermen were having trouble paying their fuel bill due to inflated oil prices.

Good chart here - Crude Oil Prices - 70 Year Historical Chart | MacroTrends - that shows the historic price of oil. Shows that the peak occurred in June 2008, at least in the price of West Texas crude. And this website - https://www.eia.gov/dnav/pet/hist/Le...F005071__3&f=M - shows the same June 2008 price peak for North Slope oil.

[Metlakatla]

Originally Posted by rwjoyak

Good chart here - Crude Oil Prices - 70 Year Historical Chart | MacroTrends - that shows the historic price of oil. Shows that the peak occurred in June 2008, at least in the price of West Texas crude. And this website - https://www.eia.gov/dnav/pet/hist/Le...F005071__3&f=M - shows the same June 2008 price peak for North Slope oil.

I have my years mixed up, thanks. It was the summer of 2008 when things were so high -- prices crashed in October of that year.

[Re3iRtH]

Originally Posted by Metlakatla

Just in case you're thinking of moving up on spec., Alaska just made the highest unemployment rate in the country.

Alaska begins 2017 with highest unemployment rate in the nation | KTVA 11

What is your thought on investing in multifamily real estate in Anchorage? 8-10 units. I have been looking into this asset class and am too chicken to invest out-of-state in apartments (at least actively). I have read that there has been job decline in all fields except health care since late 2015. One of the simple rules in RE investing is not to invest in a place where this is population decline, but the numbers seem to still pencil out.

[Re3iRtH]

Originally Posted by 6.7traveler

I read somewhere that the number of foreclosures in Alaska actually fell despite the job losses. I still don't think the prices here are anywhere close to being reasonable. As more job losses loom on the horizon hopefully the real estate market will be able to come down to more reasonable levels.

I'm not holding my breath though, Fairbanks just announced they have a housing crunch and need all these new apartments in FBX and NP to support all the new people coming for the f-35 programs. Everyone's crappy rundown house is still worth $200k+ for the foreseeable future it seems.

Investing in Fairbanks never made sense to me, due to oil heating. You can expense heating as X expense, then all of a sudden gas prices double and you are now paying 2X for heat as the owner. Sounds like playing games, not investing in real estate.

[Haolejohn]

Originally Posted by Re3iRtH

What is your thought on investing in multifamily real estate in Anchorage? 8-10 units. I have been looking into this asset class and am too chicken to invest out-of-state in apartments (at least actively). I have read that there has been job decline in all fields except health care since late 2015. One of the simple rules in RE investing is not to invest in a place where this is population decline, but the numbers seem to still pencil out.

You should contact Pitt about investing in the RE market. I bet you two would make a killing.

[pittsflyer]

Originally Posted by arleigh

i've toyed with going but not sure i can live on SS there. price of every thing is much higher .
When your my age , you really don't want to think about having to start working again ,although i must admit i miss it .
I like turning a wrench and working on equipment . or welding and fabrication , but face it , handling the heavy steel is different in a more primitive environment.
When I was young it was no big deal , but now it is.
How to live in that environment is no big trick, I can deal with cold, I prefer the snow and living in a small camper is no great challenge either , done it several times.
I even like the small town environment and being part of the village ,it's life as it should be .

Dont let people fool you, most of that work is done in a heated insulated metal building. Only idiots work outside in the winter on equipment. I dont care how hard someone talks at the bar stool, no one does that other than in very extreme situations where something is broke down and you have to get it out.


I suppose welding could get challenging in winter if you are inside you need air exchanges or to make sure your weld points are perfectly clean so your not breathing paint. Alot of project work in AK has to be planned out to account for the weather, welding simply is not done in winter unless its an emergency ... or someone is an idiot. There are always idiots no matter where you go but the consequences for idiocy are more severe up here. I suppose some people might take on less than desirable jobs but welding in the cold outside but I doubt thats the norm.


You also dont need to live in a camper just get small piece of land and put up a modular home, try to buy where you can get gas and power.


I do have to say shipping seems to be getting more and more difficult and you have to jump through your own back side to keep from getting fleeced. I am noticing amazon prime is getting skinnier on shipping to AK. You can still freight forward but that only makes sense on large expensive things.


If its too big to put in a flat rate box but not big enough to justify fright forwarding your kinda up the creek.