Cost of Living in Alaska [2024]
Are you among the brave souls who wish to conquer The Last Frontier? Whether you're chasing job prospects or an adventurous lifestyle surrounded natural beauty, the state of Alaska has plenty of incentives to encourage any prospective renter to put down roots.
If you're thinking about making the move, you'll want to make sure that Alaska is within your budget. This guide breaks down cost of living, including rent prices/housing, utilities, average monthly spending in Alaska's biggest city, and more.
If you've fallen in love with Alaska's charming appeal, then it's crucial to understand what to expect financially. This guide will break down everything you need to know about the cost of living in Alaska. Let's dive in!
Cost of Living in Alaska
What Is the Cost of Living in Alaska?
The cost of living is currently 25.42% higher than the average U.S. city in our database. Note that for major cities in Alaska, the most and least expensive cities have very similar COL rates.
When talking about the cost of living in Alaska, it's important to understand that Alaska is the least densely populated state in the US. As a result, Anchorage, which is home to almost 40% of the state's population, offers a perfect sample of the state's cost of living as a whole.
Where Is Cost of Living Highest in Alaska?
The most expensive city in Alaska is Juneau, where the cost of living is 28% higher than in the rest of the U.S and 2.06% higher compared to the state average. Average monthly spending in Juneau is $5,073. However, rental listings in Juneau are very limited.
Where Is Cost of Living Lowest in Alaska?
The major city in Alaska with the lowest cost of living is Anchorage, where it's 1.05% lower compared to the state average, but still 24.1% higher than the national average. Average monthly spending in Anchorage is $4,845. You are also more likely to find an apartment rental in Anchorage than anywhere else in Alaska.
How Much Is Rent in Alaska?
Because Alaska has limited rental options, we can look at Anchorage, where most of our current apartment listings for May 2024 can be found, to see that the average one-bedroom rate is currently $1,423 a month, while two bedrooms cost around $1,794.
How Much Is Housing in Alaska?
According to the US Census Bureau, the current median home value in Alaska is $318,000, with homeowner's monthly housing spending at a median rate of $2,130 per month. That does make renting a slightly better deal than homeownership, but also, because rental options are limited, you may want to consider ownership, especially if you're looking outside of a city.
What Salary Do I Need to Live in Alaska?
The average Anchorage resident spends $4,845 a month, which comes out to around $58,000 a year. Similarly, we can use the average rent cost of a one-bedroom apartment in Anchorage, which is is $1,423, and a budgeting rule to determine what a comfortably salary would be for a renter. To have enough money to cover bills, entertainment, and savings, you would need to keep rent under 30% of your total income before taxes, which means you should earn around $57,000 a year. However, our data suggests that real residents are spending a bit more, so you should take that into consideration when you budget.
MIT uses a more complex living wage calculation to determine that you would need to earn $46,971 before taxes to live in Anchorage. However, that amount does not include entertainment or savings.
How Much Are Utilities in Alaska?
It's no secret that Alaska gets cold, but how does its extreme weather impact utility costs? In fact, Alaska's average utility cost is notably higher than the U.S. average at $310.60 a month (compared to $253.14). That includes electricity, gas, water, and fuel:
| Location | Mean Electricity ($) | Mean Gas ($) | Mean Water ($) | Mean Fuel ($) | Total Utilities ($) |
|---|---|---|---|---|---|
| US | $150.93 | $51.12 | $45.52 | $5.57 | $253.14 |
| Alaska | $152.21 | $82.50 | $38.53 | $37.36 | $310.60 |
That said, you can beat some of the extreme weather by living in a more southern city like Anchorage or Juneau. However, if you choose to live in Fairbanks, which lies in the interior of Alaska, expect more extreme weather.
For most Alaskan residents, the bulk of their utility bills stem from the necessary cost of heating their homes in the winter months.
Overall, light/electricity may be your only non-bundled out-of-pocket utility expense. You'll likely need some sort of internet connection and cell phone service, which can tack on another $121 a month to your estimated utility bill.
How Much Is Transportation in Alaska?
While Alaska does offer public transportation options, state residents are typically used to getting around in a personal vehicle. Over 90% of trips taken in Anchorage occur within a personal vehicle.
This explains the high annual transportation expense in the city. MIT's living expense data puts the annual transportation expenses for a single person at $4,938. For a family of four with two children, transportation expenses increase to $13,456 a year.
For those who prefer to forego that expense, Anchorage offers a few options that may help to offset costs. The RideShare Program offers residents a way to get around via a "vanpool," or group of five or more riders who commute and travel at the same time. Prices will vary depending on your commute.
It's also possible to hop on a bus and ride to your destination for the low fare of $2 per single trip, $60 for a monthly pass, or $660 per year via the People Mover system. Whichever way you slice it, $660 is a lot cheaper than the typical annual transportation cost of nearly $5,000.
How Much Are Groceries in Alaska?
Next to housing costs, food costs can be a major expense for Alaskan residents. In fact, the average single adult in Anchorage will spend $5,171 on food annually or $430.91 monthly. For a family of four, the budget line item for food expands to $15,198 yearly or $1,266.50 a month.
Check out these average prices for popular grocery items in Anchorage compared to the U.S. in general:
| Food Item | U.S. Price | Anchorage Price |
|---|---|---|
| Steak | $16.00 | $13.86 |
| Ground Beef | $6.62 | $5.83 |
| Sausage | $5.78 | $4.93 |
| Frying Chicken | $2.45 | $1.57 |
| Chunk Light Tuna | $1.71 | $1.23 |
| Whole Milk | $5.09 | $4.68 |
| Eggs | $4.45 | $4.12 |
| Margarine | $2.07 | $1.66 |
| Parmesan Cheese | $4.92 | $4.50 |
| Potatoes | $5.98 | $4.95 |
How Much Is Healthcare in Alaska?
The average adult resident of Alaska spends $3,218 on healthcare costs annually. A family of four spends $9,330 in the same period.
Depending on your circumstances, your relationship with healthcare may be as simple as heading in for your yearly physical, though you may require more frequent trips. Regardless, it's crucial to find an affordable health insurance plan that meets your and your family's needs.
Visit the federal Healthcare Marketplace to find an affordable health insurance plan with coverage in your state. You can also take advantage of one of the many public health centers across the state of Alaska to access affordable healthcare near you. These centers typically charge fees on a sliding scale based on family size and income.
If you’re moving from out of state, be sure to file a report via the marketplace letting them know that you’ve moved and will need to transfer your coverage or find a new plan. If not, you may be subject to a lapse in coverage.
Fitness and Entertainment in Alaska
Whether you're a rugged mountain lover or a fitness fanatic looking to break a sweat in the Alaskan winter, you've got options. Alaska is brimming with fitness and entertainment opportunities for residents to take advantage of at any time. Here are a few fitness and entertainment options in Alaska and their costs.
Fitness Costs
Staying fit in Alaska can be as simple as heading out your front door. With so much incredible natural scenery and some parts of the year boasting well over 18 hours of sunlight, whether you walk, run, bike, or skate, the Alaskan scenery will provide the perfect backdrop to your workout.
However, if you prefer to workout in a group setting or gym, memberships can be a bit costly. Here's a cost breakdown of an annual gym membership in Alaska:
- Juneau: $90
- Anchorage: $74.75
- Fairbanks:$73.75
Visit Denali State Park
One of the perks of living in a state that boasts such a robust outdoors scene, is, well, the outdoor scene. You won't find tons of cities and concrete skyscrapers dominating the landscape in Alaska, though you will find tons of forests, mountains, and bodies of water to explore. One of the most popular outdoor spots in Alaska is Denali State Park.
You can view the Alaska and Denali Ranges in all their natural glory from pretty much any vantage point in the state park.
If you fancy yourself more of an explorer, take a trail. You'll likely see some of the park's wildlife. That includes birds, flying squirrels, wolves, caribou, and more.
Keep in mind that bears, wolves, and other predatory animals are extremely dangerous. You should not approach wildlife under any circumstances.
This free state park attracts all sorts of adventurers. You’ll see fishermen, backpackers, rock climbers, kayakers, and more.
Head to a Museum
A little-known fact about Alaska is that it boasts quite an impressive collection of museums dedicated to science, art, North America, and more. These museums are dotted within the major Alaskan cities, so you and your family can take a trip to your city's local museum.
Luckily, museums are a low-cost, family-friendly attraction. Here’s a breakdown of the costs of museum tickets in Alaska.
- Alaska State Museum (Juneau): $9
- Museum of the North (University of Alaska in Fairbanks): $16
- Alaska Museum of Science and Nature (Anchorage): $8
Other Expenses to Consider in Alaska
When you're creating your Alaskan budget, it's important to be as detailed as possible. Though there are common expenses that you'll have to account for wherever you move, all locations have their own unique expenses. They can be difficult to predict without having lived there for some time.
Luckily, we've got you covered. Here are some of the hidden costs of living in Alaska.
- Taxes: Alaska does not have state income tax or sales tax, so residents save a significant portion of their paycheck by living in the state. However, some cities & municipalities may levy their own taxes, which can amount to 7.5%.
- Gas Prices: Currently, gas in Alaska is $3.58 per gallon, which is significantly higher than the national average of $3.12 per gallon.
- Permanent Fund Dividend (PFD): Though not an expense, it’s certainly an important financial detail. This dividend payment to all eligible Alaskan residents who have lived in the state for one calendar year, resulted in a $3,284 in 2022, which is among the largest payout in history.
Ready to Find an Apartment in Alaska?
Living in Alaska is definitely a unique experience in its own right. However, as long as you’ve got the right budget to live comfortably in the state, there’s no reason that you can’t make a successful move to Alaska. Take our quiz to get started on your journey to finding your Alaska dream apartment!
FAQs About the Cost of Living in Alaska
How expensive is an apartment in Alaska?
The average one-bedroom apartment currently listed in Anchorage costs $1,423. The two-bedroom average is $1,794.
What is the cheapest rent in Alaska?
The lowest listings on our website currently (May 2024) are in Anchorage, AK, where studio apartments start at $875 per month.
How expensive is it to live in Alaska?
In Anchorage, where over 40% of Alaska's population is located, the average resident spends $4,845 per month as of May 2024.
How far is Alaska from California?
Alaska is 3,178 miles away from California It takes 56 hours to get to California from Alaska by car, 275 hours by bike, and 730 hours by foot.
What is the population of Alaska?
According to the U.S. Census Bureau, the population of Alaska is 732,673. It is the largest state in the country by area, bigger than the next three states combined, including Texas, California, and Montana.
Share this Article
Explore properties in Columbus, OH
