Matanuska-Susitna (Mat-Su) Borough in Palmer, Alaska
 
Magnificent view of the Matanuska River

In the 1960's the Mat-Su Borough had a population of just over 5,000 people. Then it was primarily a farming and mining community. As late as 1980, the population was only 17,816. Between 1980 and 1990, the Borough population more than doubled from 17,816 to 39,783. During the past decade, the population grew 49 percent versus 13 percent statewide and 14 percent in anchorage. This works out to a growth rate of 4.2 percent annually, versus Anchorage's 1.4 percent annual growth.

No area of the state comes close to the growth rate in the Mat-Su Borough. Stronger growth has meant the Mat-Su Borough is now home to nine percent of the state's population, up from seven percent in 1990. The percentage of Alaska residents in the combined Anchorage/Mat-su area population has been steadily growing, and is now equal to 51.7% of the total state population.

Net migration rates are also dramatically different for the Mat-Su Borough than for other areas of Alaska. During four of the past five years, the state has experience negative net migration; in other words, more people are leaving the state than moving into it. However, during the same period, the Mat-Su migration figures remained positive. It is no wonder that people and businesses seeking areas of growth are increasingly focusing on the Mat-Su area. Surprisingly, growth exists in nearly every part of the Mat-Su Borough. At present, about half of the borough population is located in the "core area." This area encompasses approximately 100 square miles between and around the cities of Palmer and Wasilla.

Different industries have helped shape the Mat-Su Borough economy. Mining and agriculture were the first major economic influences. The Mat-Su Borough was Alaska's biggest agricultural producer; now other economic forces drive the economy. For the last four decades, the single biggest reason for the Borough's growth has been its proximity to the state's largest city, Anchorage. It is commonplace in many parts of the country, but unique in Alaska, for two areas to have a strong economic link because of the daily commuters. This relationship exists because most of the Mat-Su Borough population lives within a 40 to 50 mile radius of Anchorage. In 1990, the census estimated that approximately 28 percent of Mat-Su residents could be working in Anchorage. Recent reports estimate that about one third of the Borough's force now commute to Anchorage for employment. This also helps explain the extraordinary growth in the Mat-Su population. At last count, 10 percent of the Anchorage labor force consisted of Mat-Su Borough residents. The Alaska Railroad Corporation is considering a commuter rail between the Mat-Su Borough and Anchorage, which will improve commute times and alleviate some traffic on the Glenn Highway.



I have been serving the Alaska commercial real estate industry for twenty years, providing commercial property listings, commercial property development and real estate listings. As a commercial real estate agent and associate real estate broker for Bond, Stephens & Johnson, Inc Commercial Real Estate Services I have been serving Alaska and the lower forty eight in commercial transactions of office buildings, commercial/retail/industrial land, apartments and warehouses.


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