Denali Borough needs 150 more housing opportunities, assessment says

Denali Borough needs at least 150 more housing opportunities despite flat population, assessment finds

Denali Borough employers need at least 150 additional housing opportunities even as the permanent population stays flat or declines, a Minnesota Housing Partnership consultant told the borough Assembly and Planning Commission Wednesday. The joint work session in Healy was exploratory. No policy was adopted.

Roughly 70 of the units serve permanent, year-round employees. The other 80 serve seasonal workforce spaces, units, or beds. The consultant called the figure a documented employer-identified minimum, not a forecast of total borough demand.

The shortage is largely one of use, though the assessment also cited construction and rehabilitation needs. The census counts about 1,301 units in the borough. Only 565 are occupied year-round, and nearly 600 of the units classified as vacant are actually seasonal, recreational or occasional-use homes rather than empty units available to rent or buy. Less than 2% was listed for rent or sale recently. Employers already house roughly 1,950 seasonal workers in dormitories, bunkhouses, RVs and converted lodging, and they still report unmet need.

Census data show 42% of units lack complete plumbing. The assessment also flagged weatherization, moisture control and accessibility as residents age. An earlier Alaska Housing Finance Corporation summary named senior housing the census area's primary need, projecting the number of senior-age dependents per working-age resident would rise 2.6 times by 2030.

The average household spends about 24% of income on housing and 29% on transportation, more than $25,000 a year combined. That totals 53% of income, well above the consultant's 35% benchmark. The session builds on a 2023 borough survey, subdivision planning work and a Points Consulting housing market analysis contract awarded that year.

Presiding Officer Jared Zimmerman said he would push toward year-round housing first. He called land contribution the borough's "low-hanging fruit" and suggested deed restrictions on certain subdivisions or on housing built on borough-contributed land. "I don't want Healy to turn into a place where people stay for a week while they work at a plant," he said.

Ryan Sheldon, who runs short- and long-term rentals in Talkeetna, offered to help owners weigh converting units to year-round tenants, saying lower overhead can beat platform and cleaning fees.

Minnesota Housing Partnership will continue technical assistance through 2027 at no cost and can provide up to $50,000 for pre-development work. Comment on the 115-page assessment is open through September on the borough website.