Fewer hammers, nails and saws: down, but not out, new housing market looks to rebound.

• Author: Grenn, Ben
• Position: BUILDING ALASKA

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Ahhhhh ... Home Sweet Home. Hold everything. That old adage may not apply to homebuyers in the Anchorage area searching for new housing for very long.

The good news: The Anchorage Home Builders Association expects 450 new single-family homes to be built in Alaska's largest city this year. The bad news: That represents a decline of about 14 percent from 2006 when 525 houses were built.

"Anchorage residents are happy with their existing homes, neighborhoods and schools," said Eric Schach, first-year president of the 48-year-old organization. "Because of that, homeowners are continuing to invest in their properties and remodeling projects, increasing home equity."

AHBA members that have traditionally focused only on new construction are beginning to add remodeling services to their businesses, Schach said.

This is the second consecutive year new home construction is expected to decrease by more than 14 percent in the Anchorage area. Remodeling efforts continue to remain strong but are forecasted to plateau with 3,300 remodeling permits anticipated this year, consistent with 2006 and a more than 300 percent from two years ago.

The local chapter was established in 1959 to represent the home building and remodeling industry and promote safe, affordable housing.

"We are community builders, not just home builders," said Schach. He points to several events hosted by AHBA, including the annual spring home and remodeling show, its annual golf tournament and the Parade of Homes show are examples of community connections.

THE WHYS

In addition to home remodeling efforts, AHBA attributes the decline of new homes being built to the decrease of land availability and increase of material and insurance costs.

A shortage of land downtown has buildings becoming taller and prices rising alongside of them. Nowhere is this effect felt more in the fast-changing A Street corridor. Hot, would be the best word to describe the real estate market downtown. Condominiums are going for $1 million each. Many local folks who are or about to become "empty-nesters" are now selling their homes and buying condos because they want to travel and/or see it as a good investment.

Many realtors say that Park Plaza II, opening this summer near midtown, is the largest residential project since Park Plaza I opened in 1982.

One problem Anchorage faces as more posh properties arrive downtown, though, is a greater shortage of affordable housing. Developers say tax...