Housing on a budget: how does a single-income or low-income family find affordable housing with rising housing prices in Alaska?

It is one of the necessities in life, finding shelter. But who actually enjoys taking the time to search all over town for a perfect place that mandatorily fits into a budget? Anchorage isn't exactly the most expensive city around, but it's certainly not the cheapest.

In a search for almost anything these days, most will likely turn to everybody's favorite modern resource, the Internet. Unfortunately, the online listing for Anchorage apartments is slim, and the information available for those apartments is even more feeble. The best and probably most accurate aid in an apartment search is an Apartment Finder catalogue, the small, detailed pamphlets found all over town in stores like the local supermarket and other retailers. The Apartment Finder names a variety of complexes citywide, lists apartments within most everyone's budget, and even provides maps for easy directions. And it can be acquired for every consumer's favorite cost: price-free.

Apartment Finders are usually most helpful when you're familiar with the town and can visit your selected apartments easily. While details are provided for every apartment complex, they are limited and few pictures are shown. Although it is easiest to obtain one locally, they are available for order by phone or Internet. And if you are moving into Anchorage, it's by far your best source.

Even though the Apartment Finder is more comprehensive than Internet information and more detailed than a newspaper, the information isn't always accurate. Apartment Finder publishes guides seasonally, but prices can differ month to month at many complexes. Often various properties will offer special deals if a renter signs up within a specified time period, typically a certain month. For instance, in October, Alpine Apartments offered a deal for $500 off any apartment or the deposit. They and other complexes will offer various deals throughout the year, some significantly better than others. As would be expected, apartments rent/lease a lot faster when a better discount is available.

However, these specials are never published in advance so you have to be lucky enough to be searching at the right time.

MONEY MATTERS

The range of rent for apartments varies greatly, especially depending on where in Anchorage you are searching. One- and two-bedroom apartments dominate the rental market as the majority available for rent. Studio apartments exist for those looking for the cheapest possible housing. Prices on a studio can range from $550 to $800: the low and high, both belonging to the McKinley Tower Apartments, the refurbished MacKay building in downtown Anchorage, which opened its doors to tenants in late July.

The price spectrum for a one-bedroom is much larger, starting at $595 and reaching $1,600 if you chose to live in the lap of luxury. If you can afford it (and are willing to pay for it), you will certainly find extra room with one and two bedrooms at Highlands Luxury Apartments, reaching up to 1,250 square feet. However, the price of an apartment does not always reflect the square footage.

Two-bedroom apartments typically start at $800 and can run up to $2,100 for a two-bedroom, two-bathroom in Bootlegger's Cove, a quiet upscale community west of downtown overlooking Cook Inlet.

These prices are representative of apartment communities all over the Anchorage area, some dependent on neighborhood, some on the modernizes of the complex. Multiple variables determine the price of apartments. However, these reflect only the base price. Some complexes agree to pay for certain utilities, gas and water or electric; rarely will you find one that covers all three. So in addition to weighing the value of the property into costs each month, a renter must also consider utilities, an initial deposit, most of which is usually refundable given no major damage, and pet fees if you own an animal.

Finding apartments in town willing to accept pets is not too difficult, although most establish weight restrictions. Often they will not allow a pet over 35 pounds or certain breeds, ones that are believed to be aggressive by nature. Those that do welcome pets will often ask for an additional monthly payment around $25 or a nonrefundable deposit, sometimes both.

Since the majority of apartments consist of one and two bedrooms, the standard renter of an apartment is limited to mainly singles and couples.

Those with children tend to rent single-family homes, which typically run between $1,500 to $1,950 and are usually more obtainable than the minimal number of three-bedroom apartments. Candace Rockwood, a leasing consultant at Alpine Apartments, guesses most of the renters are singles and couples since she does not see many children, but says, "We are not allowed to keep demographics due to fair-housing issues."

WHERE'S AFFORDABLE HOUSING?

However, fair housing is trivial for some in comparison to affordable housing. There are many who cannot afford adequate housing. To aid their search, associations such as Anchorage Neighborhood Housing Services and Cook Inlet Housing Authority assists with housing costs. Qualifications for compensation through Cook Inlet Housing include earning a household income of 80 percent or less of the area median income. If one qualifies, rent is then 30 percent of the household's adjusted gross income. Diverse housing exists from single apartments to single-family homes, including boarding specifically for seniors. However, a critical shortage of housing remains for those who still need aid.

Some might question, for those who can afford it, why many are renting instead of purchasing a house. However, the question is not whether it is better to rent or buy. It is almost always better to buy. If one is paying $800 a month for an apartment, over 10 years he or she will spend $96,000 in rent. Obviously that money would be much better spent toward equity in a home rather than in rent to someone else. However with prices in real estate having skyrocketed in the last few years, the real question is how realistic is it for the average person to buy a home? Can one actually afford it or is he or she doomed to rent forever?

BUYER'S MARKET

The price of a house varies considerably depending on what one envisions as home. The average cost of a condo is $139,000 (not including monthly dues), a townhouse jumps up to an average price of $205,000 and a single-family home leaps to an average price of $320,000.

Dave Windsor, senior vice president of Re/Max Properties Inc., believes prices are starting to come down on affordable homes, those in the $200,000 to $300,000 range. He thinks a momentary lull exists in the market and says, "sellers are desperate and will be even more so by December or January." However, if he is correct and the temporary "buyer's market" is only ephemeral, the dream of home ownership may become only more difficult for some.

WHAT $45,000 A YEAR BUYS

The average person in Anchorage makes about $3,700 a month. Kathleen Broquet, a senior loan originator at HomeState Mortgage, estimated the type of home someone earning this salary might afford. After analyzing the average salary through three standard types of loans for first-time homebuyers, she judged someone making $45,000 a year could afford a $125,000 home. Most people forget, or aren't aware that before the monthly payments begin, closing costs and down payments are pre-requisite; a large sum of money that people don't necessarily anticipate. On a $125,000 home, closing costs and insurance (which are still required on a zero-down loan) can run between $4,000 to $6,000. Broquet says, "If the seller is willing to pay $2,500 (in closing costs), you will usually need to match those payments, even on zero-down," she said. These determine monthly payments at minimally $1,250. And this only takes into account borrower's debt up to $350, which doesn't fully include that rare breed in Alaska whose toys are too numerous to count; with trucks, snow-machines, four-wheelers and such.

If the average condo is $139,000 and the average salary can only afford $125,000, it doesn't leave much hope for buying, for a single individual anyway. Especially for those living in low-income housing now. The rental market is vast, and probably will remain so, so long as real estate doesn't lose its value.

Shana Nisenbaum, a new college grad, recently moved to Anchorage and wrote this article based on her experiences in finding an apartment to rent in the area.