Anchorage Alaska Subsidized Housing Impact?

[Ron Healy]

Fellow investors familiar with Anchorage, Alaska real estate - how do you feel about investing in small multi-family apartment buildings in the current market?  Rents seem to have been flat for several years and there has been little to no growth in the value of small apartment buildings for the last 10 years or so.  Obviously our economy has struggled with the low oil prices, but a good friend who knows the market well partly blames the subsidized housing that seems readily available.  In fact a quick search reveals several beautiful new construction apartments that are available for well under the typical rent rates (based on income, etc.)

Any thoughts?  Does this make you hesitate investing here?

Thanks!