Alaska has a housing crisis. Nearly half of all the homes in the state are 30 years old or older and in need of a retrofit. More than 75,000 households are cost-burdened, meaning a family spends 30 percent of its income or more on staying warm and keeping the lights on. Added to that, 60 percent of homes lack adequate ventilation, making them potentially unsafe to live in.
The 2014 Alaska Housing Assessment, produced by the Alaska Housing Finance Corp. and the Cold Climate Housing Research Center, is an unprecedented look at the condition of housing across the state. With data gathered from 30 percent of Alaska's housing, it summarizes the age, affordability, energy efficiency and heating costs of homes in every region of Alaska, painting a picture of where we've come from and where we are today.
It's also a road map of where we need to go. There's no question that housing in Alaska faces great challenges -- high construction and energy costs, health and durability issues and severe overcrowding. Many homes built over the last half-century were not designed for our climate and did not incorporate sound building science principles related to energy efficiency and moisture management.
We can't afford not to build better. The average Fairbanks family spends $8,000 a year on energy for their homes, nearly four times the national average. This burden is much greater in regions like the Yukon-Kuskokwim, where families spend $6,000 a year on energy despite having the highest unemployment rate in the state and much smaller homes.
Poor housing is also an annual burden to Alaska's budget. Last year, the state spent $13 million on low-income heating assistance and $38 million on Power Cost Equalization in rural villages, according to the Office of Management and Budget. These are costs that we pay again and again. For that amount we could weatherize and retrofit another 7,000 homes a year.
In addition, one of the largest expenses to families and the state are the health costs related to poor housing. One in five Alaska Native infants are hospitalized each year for chronic lower respiratory problems like bronchitis and pneumonia, up to five times the national average in some regions. One medevac from a village to an Anchorage emergency room can exceed $20,000. Good housing would dramatically improve overall health for young people and the elderly and reduce annual costs.
Energy efficiency and healthy housing are some of the best investments we can make, for our communities and our state. AHFC's home weatherization and energy rebate programs have saved homeowners 33 percent on energy bills annually, an average of nearly $1,500 per household. Statewide, that's $50 million a year that's not going up the stack, but recirculating through the local economy in jobs, goods and services.
The return on investment is fast, with combined state and private spending projected to pay back in eight years. That's a 12 percent return on investment -- hard to beat in today's economy.
Research is another investment that pays back. CCHRC develops and tests building techniques and mechanical systems that lower construction costs, improve energy efficiency and ensure healthy environments for both buildings and the people using them.
The state and AHFC's efforts to improve the energy efficiency and quality of homes have clearly been successful, but we have farther to go. Housing should contribute to the sustainability of our communities rather than be a burden on them. Nationwide, the housing industry is an engine for the economy, creating jobs, manufacturing and investment. In Alaska, our approach to building and improving our housing stock must stimulate local economic development around the state.
Rural Alaska and Fairbanks are not alone in this crisis. Lack of affordable housing is the big issue in our largest city. Residents of Anchorage enjoy low energy costs because of the current price of natural gas, spending 40 percent less on energy each year than the average Alaskan. But in today's fickle marketplace, these costs are not something we can control. Gas prices fluctuate with production, demand, politics and many other factors. What you can control when you build or purchase a home is how much energy you will need to stay warm and comfortable in the years ahead.
The benefits of energy efficiency are clear, but we need to approach the problem with good information. The housing assessment is a tool for developing a long-term strategy to improve Alaska's housing stock -- through building practices, education, and programs that promote energy-efficient new construction and retrofits.
Let's work together as Alaskans to improve our lives and create a bright future for our neighbors, our children and grandchildren.
Jack Hebert is CEO of the Cold Climate Housing Research Center in Fairbanks.
The views expressed here are the writer's own and are not necessarily endorsed by Alaska Dispatch News, which welcomes a broad range of viewpoints. To submit a piece for consideration, e-mail commentary(at)alaskadispatch.com