The economy of Southeast Alaska is showing signs of growth, yet serious hurdles remain that threaten this momentum. Young families are increasingly finding it difficult to live in the region, resulting in an ongoing outmigration that is drawing attention from economists and community leaders alike.
This issue, which has lingered in the background for several years, presents a paradox. While sectors such as cruise tourism and healthcare are experiencing steady growth, the ongoing shortage of affordable housing and a lack of accessible childcare are undermining this progress.
Rachel Roy, the director of the Sitka Chamber of Commerce, shared her experiences during the recent graduation ceremony at the University of Alaska Southeast Sitka Campus. She recounted juggling responsibilities after having her first child shortly after beginning her studies and successfully pursuing her Master’s Degree.
Roy urged the graduates to remain in Southeast Alaska, highlighting the region’s need for their skills, curiosity, and resilience. “We need you,” she declared emphatically, emphasizing the necessity of their contributions across various sectors including research labs, fishing boats, classrooms, city assemblies, and boardrooms.
However, Roy’s impassioned plea underscores that sustaining young families in Southeast requires more than just determination and adaptability.
In February, Meilani Schijvens provided insight into the challenges facing the region during a presentation at the mid-session meeting of the Southeast Conference in Juneau. While her report highlighted promising statistics regarding job and wage growth, she conveyed a more complex narrative from a personal encounter.
At the gym, Schijvens recounted a conversation with a fellow attendee who highlighted the struggles faced by her four daughters in their twenties. They desperately wish to return home but feel constrained by the high costs associated with housing. Schijvens poignantly summarized the regional economic situation: “The Southeast Alaska economy is great, depending on who you are.”
The soaring rental market further complicates the situation. Once, an efficiency apartment in Sitka rented for about $750 a month; today that same unit exceeds $1,000. For families, the situation is even graver, with three-bedroom units now priced at an average of $2,100 per month.
Schijvens’s report reveals a concerning trend in Southeast over the past decade. The population of prime workforce-age residents—those between ages 20 and 59—has dwindled by 6,000, while the number of seniors has increased by 7,600. Meanwhile, job availability has surged with 1,700 new positions created.
This disparity illustrates a growing gap: while job opportunities rise, the vital workforce that sustains these positions is shrinking. School enrollment in communities like Sitka has been in a steady decline for two decades. Additionally, the turnover rate for teachers has reached alarming levels, with Sitka losing 14 teachers in the last academic year alone.
Sitka Representative Rebecca Himschoot, a former educator herself, is optimistic that new legislation (HB 78) aimed at improving teacher retirement benefits will help stabilize education in the region, attracting younger educators to the state.
“When we have teachers who come here because we have great salaries and working conditions, and we offer some sort of retirement with dignity, that can foster commitment to their communities,” Himschoot explained.
Construction efforts are underway within Southeast to alleviate housing shortages. Juneau has seen the most progress with nearly 1,200 units built in the last decade, followed by Ketchikan with 366 units, and Sitka with 291. However, despite this increased housing supply, Schijvens’s report suggests these efforts are still insufficient to meet demand or create affordability.
The economic pressures facing the region appear to outweigh the positive impacts of job and wage growth. Over the past decade, Southeast has seen a decline of more than 4,000 residents, and the recent economic upturn has yet to attract them back.
As Southeast Alaska navigates this complex landscape, the importance of innovative solutions to retain young families cannot be overstated.
image source from：alaskapublic
