With its magnificent scenery and outdoor adventures, Alaska is one of the most expensive states for living.
In this state, most of its cities and towns consistently have a cost of living that is more expensive than the national average.
However, there are still cities in Alaska that are affordable.
This guide will cover everything you need to know about the cost of living in Alaska to help you create your financial budget.
Contents
Cost of Living in Alaska
As we said before, living in this state, recognized for selling the most expensive McDonald’s Quarter Pounders with Cheese, can be very expensive.
But, all of you are curious how expensive these costs can be.
Furthermore, which cities are the most costly in this state.
So, keep reading the post, and you will find your answers.
Housing costs
Housing costs contribute significantly to the overall cost of living in Alaska.
The cost of housing depends on the area you want to live, as the state includes a mix of urban, suburban, and rural atmospheres.
Anyway, the average value of houses in Alaska is $241,800.
That is 37% higher than the national average of $176,700.
As far as rent goes, Alaska is regularly so cheaper than America as a whole.
The average rent for a studio and one-bedroom apartment in Alaska is $17 and $21 cheaper than the national average.
Food Costs
Another important thing when speaking about the cost of living here is definitely the considerable distance between Alaska and most of the major food-growing regions in the US.
Almost everything needs to travel far distances to get into Alaska.
That makes costs up, especially where supermarkets are concerned.
For example, a dozen eggs costs around $5.50, and a two-liter of Coke is around $3.50.
Utility and Transportation Costs
The other element of the cost of living in Alaska is utilities or the costs associated with keeping your living space warm and comfortable.
Since Alaska is known for its long, freezing winters, it’s not too surprising that utilities are some of the highest living expenses in Alaska for citizens.
Therefore, many homes have a few sources of heat in the winter: electricity, fuel oil, natural gas, and wood.
So, most residents switch up their heating methods depending on the current cost.
As for transportation costs, the average price of a gallon of gas in Alaska is $3.36.
That’s the sixth-highest average price in America.
Moreover, there are plenty of places in Alaska that you cannot get to via road.
To make your way there, you might have to take a boat or a small plane.
The cost of these transport passes is really high.
The Top Five Expensive Cities in This State
Juneau
Juneau is The capital of Alaska and is also one of its more expensive cities.
This growing waterfront city is the only U.S. state capital where there is no road in and out.
Juneau can only be reached by airplane or boat.
As a result of that, the transportation cost here is enormously high.
Other factors, such as restaurants and food costs, also make Juneau an expensive city.
Besides, homes in Juneau tend to be more expensive than the Alaskan average.
Kenai
Kenai is one of Alaska’s most breathtaking outdoor cities.
It offers views of Mount Spurr, Mount Iliamna, and Mount Redoubt, all active volcanoes.
This city is world-famous for its salmon fishing.
King, red, silver and pink salmon are all frequently caught in the Kenai River.
But, the cost of living here is higher than the national average by about 18%.
Housing prices can be surprisingly high.
As for renting, Kenai is more affordable for renting an apartment.
The average rent for a one-bedroom apartment is $900 per month.
Lastly, food prices are also overpriced.
For example, one liter of milk is $.54, pizza is $10.49, while one Beer in a pub will cost you $12.99.
Anchorage
Living in Anchorage is about 23.5% more costly than the national average.
There are a lot of parts that go into the cost of living in a particular city.
Here, we will break down Anchorage’s cost of living to demonstrate where that money goes.
Housing is generally the most expensive single thing in most budgets.
Generally, Anchorage’s housing costs are 44.6% higher than those of the average US city, and it’s one of the biggest reasons why the cost of living is so much higher than the rest of the US.
The average price for homes is about $339.000, with an average price per square of $182.
In general, prices for car insurance are around $1501.
So, we can say that only costs for car insurance are unexpensive here.
As for other costs, such as food, restaurant prices, etc. – they are all the same as in Kenai.
Fairbanks
That puts the cost of living in Fairbanks 30% higher than the national average.
In Fairbanks, the average home value is $201,100, and the price for rent for a one-bedroom apartment is $1,016.67.
On the other side, health care is much more expensive than in other cities in this state.
For example, a doctor’s visit can cost you enormously $170, while a dentist’s visit is about $130.
So, for a single adult living in the area, average health care costs come out to $10,655 per year, compared to an average of $9,399 across Alaska and $4,266 nationwide.
Badger
Badger is a town in Alaska with a population of 18,911.
Many families and young professionals live in Badger.
However, it is a great city, but the cost of living is on a high level.
In this city the prices for child care are the highest, comparing the other prices in other cities.
For instance, the average annual cost of child care for two children — one 4-year-old and one 8 -year -old — is $22,588.
Alaska Safety Overview
READ THE FULL REPORT: Alaska Safety Review
Safety Index:
- OVERALL RISK: MEDIUM
- TRANSPORT & TAXIS RISK: LOW
- PICKPOCKETS RISK: LOW
- NATURAL DISASTERS RISK: MEDIUM
- MUGGING RISK: HIGH
- TERRORISM RISK: LOW
- SCAMS RISK: MEDIUM
- WOMEN TRAVELERS RISK: LOW
Additional Resources
Cost of Living in California Cities: These Are the Top 5
Cost of Living in Minnesota Cities: These Are the Top 5
Cost of Living in Delaware Cities: These Are the Top 5
Cost of Living in Connecticut Cities: These Are the Top 5
Cost of Living in Massachusetts Cities: These Are the Top 5
Cost of Living in Ohio Cities: These Are the Top 5
There are still affordable options, such as smaller towns like Kenai or Soldotna. The cost of housing and food are major factors contributing to the high cost of living in Alaska.