"The Mat-Su fits the classic metro-suburban commuter model," Fried said. "More and more of the Anchorage labor force is beginning to rationalize the commute in relationship to the cost savings in the Valley housing market."

That cost saving is substantial. The Alaska State Department of Labor and Workforce Development's Research and Analysis Section estimates that the average sale price of a single-family home in the Valley is $169,404. The average cost of a single home in Anchorage is $217,246. That's a 22 percent differential.

According to the latest statistics provided by the Mat-Su Borough's Assessment Division, the number of new homes going up is in direct correlation to the amount of migration to the Valley. The Borough recorded 1,038 new residential structures in 2001. The number went up to 1,286 new housing starts in 2002, a 20 percent increase in just one year.

The community that saw the most overall growth in the borough was Willow. Thirty one new homes were built there in 2001, compared to 131 homes last year. Other areas that saw significant growth were Knik-Fairview, Meadow Lakes and Tanaina.

Building also continues in the city of Wasilla, which saw a 26 percent increase in new housing starts last year over 2001. The city of Palmer realized a slight decrease in new home construction, and Houston's new construction figures stayed just about the same over the past two years. The subdivisions outside these three "core area" cities accounted for 203 housing starts in 2002, an overall growth of 12 percent.

All of this new construction means a lot of new development dollars. The Mat-Su area's real estate industry continues to grow at a very healthy pace. According to the Valley Board of Realtors' Multiple Listing Service for the period January 1, 2000 through December 31, 2002, the total amount of sold homes rose by nearly 13 percent.

In 2001, the board recorded total sales of $138.9 million, which jumped to $158.5 million in 2002. The average price of single-family homes rose as well. In 2001, the average home cost $144,968; in 2002, the average price was $158,473.

Valley Board of Realtors President Jean Kay said the reason for the continued growth is an improving quality of life in the area. "We're seeing more and more builders, subcontractors, retail stores and small businesses growing in larger numbers all the time," she said. "More paved roads are also becoming a reality, some from developers, from local improvement projects, and through state and federal funding."

New schools in the Mat-Su have added to the lure of new home buyers. Teeland Middle School, Meadow Lakes Elementary School and Larson Elementary School, have all been completed and are running at capacity. All three of these schools are quickly being surrounded by new subdivisions.

There is also a growing demographic that is creating a high demand for new housing: Valley seniors. A prime example of just how fast this pre-baby boomer group is growing can be found at the Wasilla Senior Center Campus.

The 10-acre campus currently has 140 homes. The executive director of the center, Tim Anderson, said those numbers will soon change. "We have $15 million in new housing projects that are scheduled for completion by the end of 2003," he said. "Two more new housing projects totaling $3.5 million are scheduled for completion at the end of 2004."

According to Anderson, what's driving all this supply of new housing is the demand. Right now, the Wasilla Senior Center has a list of 150 seniors who are waiting to move into those new homes as soon as they are completed.

"The demand is so high that we are already looking for an addition to our existing 10 acre campus," Anderson said. "Hopefully we'll be able to secure another ten acres that would connect to our campus so we can keep meeting the needs of our seniors."

Given the fact that within the next few years the first wave of baby boomers will officially become seniors, the demand might just get a lot bigger than it is now.