Facts & Figures: Historic & Today

Population
Location
Government
Economy
Climate
Transportation
Historical Milestones and Related Trivia
Cost of Living
Tax Rates in Homer
Water and Sewer Service
Electric Power
Home Heating Options
Local Media Outlets
Education

2021 population and assorted demographic info
The Alaska Department of Labor & Workforce Development 2020 estimate estimates Homer's population at 5,522, a 10% increase over the 2010 Census count. Births and in-migration of new residents, primarily families and senior citizens, account for the population growth. 

Land area
15 square miles of land and 10.5 square miles of water

Location
Homer is located in south-central Alaska, 227 road miles from Anchorage (Alaska’s largest city), near the southern tip of the Kenai Peninsula, 59°38'35" North Latitude, 151°31'33" West Longitude. (Map source: Alaska Islands and Ocean Visitor Center.)

Government
The City of Homer was established as a first class municipality in March 1964 with a city manager/city council form of government. Elected officials consist of six City Council members and the mayor. Homer is part of the Kenai Peninsula Borough.

Economy
Homer has a diverse economy with commercial fishing, tourism, and government sectors being the most prominent. For more information, see the Homer Comprehensive Economic Development Strategy. See also Frequently Asked Questions about starting or relocating a business in Homer.

Climate
Homer’s climate is moderated by the Pacific Ocean, resulting in warmer winters and cooler summers than seen in places farther inland in Alaska. The average maximum temperature is 29.2 degrees F in January and 60.9 degrees F in July. The average minimum temperature is 16.7 degrees F in January and 46.3 degrees F in July. Average total annual precipitation is 24.4 inches, with 54.9 inches of snowfall, and 5 inches average snow depth in February. (Source: Western Regional Climate Center; period of record from Sept. 1, 1932 to Sept. 30, 2009; Homer Airport weather station.)

As in other parts of the world, Homer’s climate is warming. While there are large variations from year to year, a linear trend analysis of records from 1949 to 2009 reveals an average seasonal temperature increase of 5.9 degrees F in winter, 3.8 degrees in spring, 3.3 degrees in summer, and 1.8 degrees in autumn (3.8 degrees overall).  This trend is continuing and potentially growing in strength.  In 2015 alone, Alaska's mean average annual temperature was 35.3º F, a substantial 2.7º higher than the 30-year normal of 32.6º.  (Source: Alaska Climate Research Center, University of Alaska–Fairbanks.)

Since 1989, the water balance (difference between precipitation and potential evapotranspiration) has declined from 10.2 inches to 5.9 inches of water on average. Precipitation amounts vary greatly when traveling from Southeast to Arctic Alaska -- but generally shows no long-term trend. (Source: Ed Berg, U.S. Fish and Wildlife Service, “Recent Changes in the Climate of Kachemak Bay,” March 2006.)

Transportation
By road: Sterling Highway – an Alaska Scenic Byway
By sea : Alaska Marine Highway
By air: Homer Airport

Historical Milestones and Related Trivia
The following timeline is not intended to provide a complete history of Homer but rather to describe a few events which serve to illustrate Homer’s development and character as it has evolved over time. Sources include local historians Janet Klein and Dave Brann and the Alaska Department of Fish and Game.

6000 BC - Native people inhabit the Kachemak Bay area then and now.
1896 - Con man Homer Pennock promotes gold mining in the Homer area, but coal mining is much more successful.
1902 - Homer is virtually abandoned between 1902 and 1915 due to lack of coal markets.
1915 - Charlie Miller winters 95 horses at his homestead (Miller’s Landing) for the Alaska Railroad.
1917 - Delphina Woodard develops a dairy farm in what is now downtown Homer.
1919 - First school opens at Miller’s Landing.
1920 - 46 people reside in the census area designated as “Homer Spit and Vicinity.”
1925 - A rudimentary telephone system is established.
1930-40 - Commercial and civic activity increases significantly. By 1938, Homer has an airplane runway, several general stores, two restaurants, and a new dock built by the Homer Civic League. Supply ships now bypass Seldovia to deliver goods directly to Homer. Homer’s population in 1940 is pegged at 325.
1941-42 - Alaska Road Commission creates Beluga Lake by damming the slough.
1945 - Homer Electric Association is incorporated.
1946-47 - The coldest winter in history is recorded for North America. Much of inner Kachemak Bay freezes over.
1950 - Homer’s population is 307.
1948-51 - Construction of the Sterling Highway puts Homer on the road system and fuels growth.
1955 - South Peninsula Hospital opens.
1960 - The population of Homer, at 1,247, exceeds that of Seldovia for the first time.
1964 - The Good Friday earthquake causes much of Homer to subside 2-8 feet, with serious damage to the harbor. Homer incorporates as a city on March 31. The damaged harbor is rebuilt with federal funds.
1969 - Classes are offered for the first time at the Kachemak Bay Campus of UAA-KPC.
1970 - Homer’s population is 1,803.
1971 - Kachemak Bay State Park is created, contributing to the growth of tourism in Homer.
1976 - The state of Alaska sells several oil leases in Kachemak Bay. After the jack-up oil rig George Ferris gets stuck in the mud, public outcry persuades the state to buy back the leases.
1980 - Homer’s population is 2,209.
1985 - Homer gets its first fast-food chain restaurant (McDonalds).
1986 - The Homer “Bypass” is built, creating a new commercial corridor.
1989 - Homer fishermen and others are impacted by the Exxon Valdez oil spill.
1990 - Homer’s population is 3,660.
1998 - Icicle Seafoods—Homer’s only fish-processing plant and the town’s largest seasonal employer—burns to the ground.
2000 - Homer’s population is 3,946.
2002 - Homer annexes 4.6 square miles.
2009 - Homer’s population is estimated at 5,551 (Alaska Dept. of Labor).

Cost of Living
The following information is from Alaska Economic Trends, July 2018 issue, published by the Alaska Department of Labor and Workforce Development. See the entire issue, which focused on “The Cost of Living in Alaska,” at http://labor.alaska.gov/trends/jul18.pdf.

It should come as no surprise that it costs more to live in Alaska than in most places in the Lower 48 states. Alaskans, like other U.S.  consumers, spend the largest share of their consumption dollars on housing, and the cost of housing varies widely across Alaska, as it does in the rest of the U.S.  Housing prices are quite high in Anchorage and some rural off-the-highway system communities.  Homer housing prices, whether renting or buying, are generally higher than on the central Kenai Peninsula (Kenai/Soldotna) but still considerably less than in Anchorage.

In 2019, the median sale price of homes in the Homer market area listed on MLS was $269,200. When looking at housing in the Homer area, it is important to factor in the cost of transportation which can add considerably to cost of living for those who commute to Homer from outside city limits. Median monthly rent is $970.  Housing in Homer may seem expensive compared to Topeka, Kansas, but it is cheap compared to San Francisco.

To judge the relative cost of living in Homer as compared to the Lower 48, it is first helpful to look at Anchorage since most national cost-of-living surveys include Anchorage. In one well-known survey (the annual ACCRA Cost of Living Index), results for 2019 found that the overall cost of living in Anchorage (professional households) was 27.4% higher than the nationwide average. This survey breaks out grocery items, housing, utilities, transportation, health care, and miscellaneous goods and services. However, it does not measure taxation, where Alaska has a clear advantage. (There is no state income tax or state sales tax in Alaska.)

So what is the cost of living in Homer compared to Anchorage? Overall, it’s almost the same. A 2008 survey commissioned by the Alaska Dept. of Labor found that the cost of living in Homer is only 1% higher than in Anchorage.

A closer look reveals that some items in Homer are more expensive than in Anchorage and some are less expensive. The biggest discrepancy is in housing, which is less expensive in Homer (.79 price differential). On the other hand, interstate air travel is considerably more expensive for Homer residents (1.56 price differential), presumably because of the additional cost of air travel between Homer and Anchorage. (All flights to the Lower 48 from Southcentral Alaska go through Anchorage.)

While all expenditure categories were higher in Alaska than the U.S. average, eighteen U.S. cities topped Alaska's most expensive city, Juneau:  Seattle, Manhattan, San Francisco, Honolulu, Washington D.C. and Boston to name a few.

Tax rates in Homer
There is no state income tax or state sales tax in Alaska. The sales tax in Homer is 7.85% (4.85% City of Homer and 3% Kenai Peninsula Borough). Non-prepared foods are exempt from sales tax from September through May.

The property tax rate in Homer totals 11.3 mills (4.5 City of Homer, 4.5 Kenai Peninsula Borough, and 2.3 South Peninsula Hospital). This translates to a tax levy of $1,130 for every $100,000 in assessed valuation. However, the first $20,000 in valuation is tax exempt for most residents who request the exemption. In addition, senior citizens (age 65 and older) benefit from an exemption on the first $150,000 in valuation for the City of Homer portion and on the first $300,000 in valuation  for the Kenai Peninsula Borough portion. The KPB exemption applies to service area tax assessments as well; for example, the one which supports South Peninsula Hospital.

Water and sewer service and rates
The City of Homer provides clean water to the Homer community through a water treatment plant located adjacent to the Bridge Creek Reservoir. The water treatment plant came on line in 2009, replacing an older facility.

The Sewer Treatment Plant is located in the Public Works compound on the Sterling Highway. The existing plant has been in operation since 1989.

For more information on water and sewer service facilities and rates, click here.

Some households not hooked up to the City water system obtain water from commercial water haulers. Local water haulers include Moore & Moore Services and Hank’s Water Service. Contact them for information on current rates.

Electric power
Electricity is provided by Homer Electric Association, Inc. (HEA), a member-owned rural electric cooperative. HEA is part of the “Railbelt grid” which includes Anchorage and Fairbanks. Power generation is primarily from natural gas (88%), with almost all of the remainder from the Bradley Lake hydroelectric facility and a tiny but growing amount from small-scale wind and solar power installations on private property (non-commercial). Rates change frequently, mostly in response to fluctuations in the price of natural gas. For current rates, see the HEA website.

Home heating options
Home heating options in Homer are heating oil, electric, propane, wood, and natural gas. For current fuel oil and propane rates, contact HomeRun Oil, Suburban Propane or Amerigas. Contact Enstar for more information on natural gas. See link to electric rates above. A number of small businesses provide firewood in the Homer area.

Local media outlets
Local media outlets include one weekly newspaper, the Homer News, public radio station KBBI (AM 890), and commercial radio stations KWVV (FM 103.5) and KGTL (AM 620).

Education
Public schools in Homer include West Homer Elementary, Paul Banks Elementary, Homer Middle School (grades 7-8), Homer High School, and Homer Flex School (an alternative high school). Fireweed Academy (grades K-6) is operated as a charter school. The Kenai Peninsula Borough School District also supports home schooling through Connections (grades K-12).

Early childhood education and quality day care are available. Click the link to search for a list of licensed early childhood care providers in the area: http://dhss.alaska.gov/dpa/Pages/ccare/default.aspx.

Post-secondary education is available through the Kachemak Bay Campus of the University of Alaska-Kenai Peninsula College.