Southeast Alaska is experiencing robust economic growth, but challenges such as housing shortages and a lack of childcare are threatening its sustainability. Young families, in particular, are finding it difficult to live in the region, leading to an outmigration of young people. Economists and community leaders are increasingly concerned about this trend.
The steady growth in sectors like cruise tourism and healthcare is being undermined by these issues. For instance, rents for efficiency apartments in Sitka have risen from $750 to over $1,000 monthly, while three-bedroom units now cost $2,100. Meilani Schijvens, presenting at the Southeast Conference, highlighted the disparity: “The Southeast Alaska economy is great, depending on who you are.”
The region has lost 6,000 residents of prime workforce age (20-59) over the past decade, despite a 1,700-job increase. School enrollments are declining, and teacher turnover is high. Sitka Rep. Rebecca Himschoot hopes that new legislation, like HB 78, will stabilize education and attract younger residents. While new housing is being built, it is insufficient to address the shortage or create affordability.
— new from Alaska Public Media