Survey Shows Building-Material Costs Higher in Rural Alaska

Apr 24, 2001, 01:00 ET from Alaska Housing Finance Corporation

    ANCHORAGE, Alaska, April 24 /PRNewswire Interactive News Release/ --
 Residents in rural areas of Alaska continue to pay two to three times as much
 for construction materials as those in urban areas, such as Anchorage or
 Juneau, according to Alaska Housing Finance Corporation's 2001 Annual
 Construction Cost Survey.
     "These costs are quite substantial when individual construction items are
 examined," said James Wiedle, AHFC Planner. "For example, a framing stud,
 which costs around $2.50 in Anchorage, can cost almost $5.00 in Barrow. These
 costs add up in rural Alaska, often pushing the price of a modest new
 1,500 square foot home to well over $230,000."
     Many of the differences in regional costs were attributed to shipping and
 transportation costs. Communities closest to Washington state recorded the
 lowest cost, while communities the furthest away were highest. Sitka and
 Ketchikan were 6-10% lower than Anchorage. Areas with the greatest distance to
 ship and the most extreme weather conditions -- Barrow, Nome, and Bethel
 -- recorded costs 63-133% higher than Anchorage.
     AHFC conducts the survey annually in conjunction with the Alaska
 Department of Labor. Regional suppliers are asked to estimate the cost of
 supplying a market basket of materials to 11 regions throughout the state.
 AHFC has sponsored the survey since 1995.
     The complete survey results can be found on AHFC's web site at
 www.ahfc.state.ak.us, click on Download.
     AHFC is a self-supporting public corporation, which provides financing for
 multi-family complexes, congregate facilities, and single-family homes, with
 special loan programs for low- and moderate-income borrowers, veterans, and
 those living in rural areas of the state. It also provides energy and
 weatherization programs; low-income rental housing; and special programs for
 the homeless and those seeking to become self-sufficient. AHFC contributes
 more than $100 million annually to Alaska's state revenues through cash
 transfers, capital projects and debt-service payments.
 
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SOURCE Alaska Housing Finance Corporation
    ANCHORAGE, Alaska, April 24 /PRNewswire Interactive News Release/ --
 Residents in rural areas of Alaska continue to pay two to three times as much
 for construction materials as those in urban areas, such as Anchorage or
 Juneau, according to Alaska Housing Finance Corporation's 2001 Annual
 Construction Cost Survey.
     "These costs are quite substantial when individual construction items are
 examined," said James Wiedle, AHFC Planner. "For example, a framing stud,
 which costs around $2.50 in Anchorage, can cost almost $5.00 in Barrow. These
 costs add up in rural Alaska, often pushing the price of a modest new
 1,500 square foot home to well over $230,000."
     Many of the differences in regional costs were attributed to shipping and
 transportation costs. Communities closest to Washington state recorded the
 lowest cost, while communities the furthest away were highest. Sitka and
 Ketchikan were 6-10% lower than Anchorage. Areas with the greatest distance to
 ship and the most extreme weather conditions -- Barrow, Nome, and Bethel
 -- recorded costs 63-133% higher than Anchorage.
     AHFC conducts the survey annually in conjunction with the Alaska
 Department of Labor. Regional suppliers are asked to estimate the cost of
 supplying a market basket of materials to 11 regions throughout the state.
 AHFC has sponsored the survey since 1995.
     The complete survey results can be found on AHFC's web site at
 www.ahfc.state.ak.us, click on Download.
     AHFC is a self-supporting public corporation, which provides financing for
 multi-family complexes, congregate facilities, and single-family homes, with
 special loan programs for low- and moderate-income borrowers, veterans, and
 those living in rural areas of the state. It also provides energy and
 weatherization programs; low-income rental housing; and special programs for
 the homeless and those seeking to become self-sufficient. AHFC contributes
 more than $100 million annually to Alaska's state revenues through cash
 transfers, capital projects and debt-service payments.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X82847429
 
 SOURCE  Alaska Housing Finance Corporation