How Much is an Acre of Land Worth in Alaska?

When it comes to the value of an acre of land in Alaska, several factors come into play, such as location, accessibility, and natural resources. According to the 2021 USDA Land Values Summary, the average value of an acre of farm real estate in Alaska was $1,100, which is significantly lower than the national average of $3,380 per acre. However, the value of land in Alaska can vary greatly depending on its proximity to urban areas and its potential for development. For instance, a 2019 report by the Alaska Department of Natural Resources found that the average price of an acre of land in the Matanuska-Susitna Borough, a rapidly growing area near Anchorage, was $5,000.

Overview of the Alaskan Land Market

In general, land prices in Alaska tend to be more affordable than many other states due to the remote location and lack of infrastructure development across much of the state. However, there is high demand for recreational properties, with riverfront, lakefront and ocean view parcels commanding premium prices, especially those within reasonable driving distance of cities like Anchorage and Juneau.

The average price per acre for land in Alaska is around $7,000. However, prices can range from as little as a few hundred dollars per acre for remote wilderness tracts to over $100,000 per acre for highly desirable recreational parcels in accessible areas.

Factors that impact the value of land in Alaska include:

• Location - Accessibility to roads, utilities, cities
• Views - Ocean, mountain, river, lakefront
• Recreational appeal - Hunting, fishing, wildlife viewing
• Resource potential - Mineral rights, timber harvesting
• Land characteristics - Vegetative cover, topography, buildable area

Let's take a closer look at how these factors impact per acre pricing across different regions of Alaska.

Remote Wilderness Land

In remote areas of Alaska without road access, infrastructure or development, large tracts of vacant land can be purchased for $100-$500 per acre on average. Prices tend to be lowest in the far northern and western regions of the state.

For example, 40-80 acre parcels off the road system in the Northwest Arctic region have sold recently for $150-$350 per acre. In the Yukon Flats east of Fairbanks, 200+ acre wilderness tracts have traded hands for $250-$750 per acre.

While inexpensive, purchasing remote land in Alaska comes with challenges. Without legal road access, you’ll need to charter a plane or boat to reach your property. Building will also be difficult without the ability to bring in heavy equipment. Hunting cabins or temporary structures are typically the extent of development.

Those purchasing remote wildlands are usually looking to secure hunting access, harvest natural resources, build a vacation cabin or just enjoy owning a piece of the Alaska wilderness.

Rural/Agricultural Land

In rural regions of Alaska with county road access, land prices begin to climb over $1,000 per acre. Agricultural land suitable for farming comes at a premium due to the short growing season and land characteristics needed to support crops and livestock.

For example, in the Matanuska-Susitna Valley north of Anchorage, 100+ acre farmland parcels have sold recently for $2,000-$3,500 per acre. On the Kenai Peninsula south of Anchorage, cleared land with agricultural potential has traded between $3,000-$6,000 per acre.

With rural land, you gain easier access for development, recreation and resource harvesting. Road access also makes buying and owning land in Alaska more feasible for out-of-state buyers.

Recreational Land

Prime recreational parcels with waterfront access or mountain views sell for premium prices in Alaska due to high demand. Riverfront, lakefront or ocean view tracts located within a few hours’ drive of cities routinely sell for $10,000 - $30,000+ per acre depending on the location.

For example, 5–20-acre ocean view parcels on the Kenai Peninsula have sold recently for $15,000-$25,000 per acre. Near Homer off the Sterling Highway, smaller 2–5-acre ocean view lots have traded for up to $50,000 per acre.

In interior Alaska, recreational land with lake or river access also demands a premium. Near Fairbanks and Anchorage, 5–20-acre riverfront tracts tend to sell for $10,000-$20,000 per acre. Near Talkeetna, 10–80-acre parcels on lakes like Paradise Lake have sold for $5,000-$10,000 per acre.

For savvy land buyers, targeting recreational land in Alaska’s hot spots can be a great real estate investment. Properties with water access have excellent rental potential for fishing cabins, remote vacation getaways or future development.

Residential/Commercial Land

Parcels designated for residential or commercial use near cities and infrastructure also sell for premium prices in Alaska. Within Anchorage city limits, vacant lots approved for housing sell for $50,000+ per acre on up past $100,000+ per acre. In fast growing Wasilla north of Anchorage, residential building lots sell for $30,000-$75,000 per acre.

Commercial land suitable for retail, hotels, storage units or other ventures carries big price tags in high traffic areas. In Anchorage, commercially zoned vacant land sells for $100,000+ per acre along major thoroughfares. In tourism hot spots like Homer or Talkeetna, commercial tracts sell for up to $200,000+ per acre.

For savvy investors, residential or commercially zoned land near Alaskan cities can make an excellent real estate investment. With high costs to secure these premier parcels, offering discounted cash deals can be quite profitable for sellers while still providing good long-term value.

Factors Impacting Cost Per Acre in Alaska

As you can see, pricing for Alaska land varies greatly based on the location, views, access, characteristics and intended use. When researching properties, consider how the following factors impact cost per acre:

Access/Location

• Road access vs remote
• Driving distance to cities
• Access to utility hookups
• Designated land use (recreational/residential/commercial)

Views/Frontage

• Riverfront
• Lakefront
• Ocean views/access
• Mountain views
• Forested/open

Recreation Appeal

• Fishing access (salmon/trout)
• Hunting habitat (moose/bear)
• Wildlife viewing opportunities
• Skiing, snowmobile access

Land Characteristics

• Cleared vs wooded
• Soil conditions
• Drainage/buildable area
• Mineral rights?

While list prices provide a starting point, actual sales can vary significantly based on market conditions. With over 100 land transactions closed, Land Boss purchases a wide range of remote to recreational acreage across Alaska. By dealing in cash and buying below market value, we provide a quick and lucrative exit for motivated sellers.

Estimating Value of Your Alaskan Land

If you currently own undeveloped land in Alaska, estimating the current market value involves researching recent sales of similar nearby parcels. Some key steps include:

• Check land listings on sites like Lands of America to gauge listing prices per acre based on location and attributes like your property.
• Search local assessor records to find prices of recent land sales in your county. Compare acreage, access, views and characteristics.
• For a formal appraisal, hire an accredited appraiser familiar with Alaska valuations to provide a detailed report. Cost is around $400-$500 for a basic appraisal.
• Realtors active in your local market can also provide area sales comps to estimate value. Many specialize specifically in land transactions.

Keep in mind that listing prices are not always an accurate gauge of market value. Location, views, and proposed use impact actual selling prices. And with Alaska’s volatile land market, values can change quickly in hot areas.

Professional assessments from appraisers or realtors will best estimate current market value based on recent sales around your property. Just be aware even formal appraisals are still opinions on value which can vary greatly between pros.

Challenges of Selling Land in Alaska

Trying to sell vacant land on your own in Alaska brings unique challenges compared to other real estate.

Long Timelines - Listing land with an agent or for sale by owner, expect to wait 12-24 months on average for a deal. Quick sales still happen occasionally but require significant luck and marketing.

Upfront Costs - From clearing title issues to paying for listings and advertising, expect to invest thousands upfront preparing your land for sale before seeing any return.

Volatile Values - Rapid development and changing market conditions make it hard to set an optimal price per acre to attract buyers without leaving money on the table.

Limited Buyers - The pool of buyers for vacant land is much smaller than those looking for homes. Remote parcels in Alaska see far fewer potential purchasers.

Marketing Challenges - Reaching those buyers takes extensive marketing efforts across multiple platforms from online listings to print advertising to ensure sufficient exposure.

For these reasons, selling land in Alaska on your own requires patience, savvy negotiation skills and a strong grasp of property values. Owners lacking the time, expertise or financial means often struggle getting full market price for their land.

Alternatives To Selling Your Land on The Open Market

Rather than dealing with the long timelines and upfront costs trying to sell your Alaska land parcel yourself, alternate options exist. Land buying companies like Land Boss purchase properties directly from owners using cash on an as-is basis.

Our land buying experts use extensive market data to provide fair cash offers for Alaskan properties based on location, access, views and recent sales of comparable parcels. As an established business with over 100 land deals closed, we have the resources and knowledge to buy land for a discounted price while still offering sellers more than they may get trying to sell their remote land on their own.

Frequently Asked Questions (FAQs)

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How much does an acre of remote wilderness land typically cost in Alaska?

In very remote regions of Alaska without road access or infrastructure, you can find large acres of vacant wilderness land selling for $100 - $500 per acre on average. However, these properties come with accessibility challenges unless you charter a plane or boat.

What drives higher per acre land prices in Alaska?

Desirable recreational land with waterfront access commands premium land pricing between $10k - $30k+ per acre near areas like Anchorage and Fairbanks. Cleared agricultural acreage or residentially zoned parcels near cities also sell for higher prices per acre.

What are some typical per acre prices for recreational land in popular Alaska regions?

In popular Kenai Peninsula areas near Homer and Soldotna, 2-5 acre ocean view parcels can sell for $15k - $50k per acre. Near Talkeetna and Fairbanks, 10-80 acre riverfront tracts tend to trade for $5k - $20k per acre depending on amenities.

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Does Alaska land appraise for the list price per acre?

Not necessarily. Listed land prices are often higher than appraised values or actual selling prices negotiated between buyers and sellers. Recent comparable sales around the subject property give the most accurate valuation.

What options exist besides listing land myself if I want to sell my Alaska acreage?

Companies like Land Boss buy Alaska land for cash direct from owners, avoiding commissions and marketing costs selling privately. While offers are discounted, it provides a much quicker and simpler land sale alternative over trying to sell yourself.

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