Are you thinking of moving to Alaska? Famously known as America’s last frontier, Alaska is the largest state in the US by area with an estimated population of 731,158 residents. It is one of the world’s most sought-after tourist destinations because of its untamed wilderness and beautiful landscape. The state is home to the Aleutian Islands, vast tundras, the Arctic Coastal plains, Glacier Bay, the Denali National Park and Preserve, Harding IceField, and many more. Because of its natural features, Alaska tends to attract an adventure-seeking kind of crowd.
The Cost of Living in Alaska
Although it’s one of the smallest state economics in America, Alaska has one of the highest per capita incomes, $71,996, because of its diverse economy dominated by oil, fishing, tourism, and natural gas.
The cost of food, particularly in rural areas, is more than the national average. And the more rural your location is, the higher the cost of food, especially for fresh fruits and vegetables. This is because transporting food to rural areas is very expensive, and the consumer incurs this extra cost. The state’s climate is also not conducive for growing most foods, so most of the food is outsourced from other states. Despite some of its high costs, the state has no state income tax and sales tax. Looking for the cheapest place to live in Alaska? Here are our top 5 picks.
What’s the cost of housing in Alaska?
If you’re thinking of renting in Alaska, expect to pay an average of $1,458 per month. This is a little over $300 higher than the national average of $1150 per month.
If you’re undecided and planning to live on a budget, you will likely find a house that fits within your budget, depending on where in the state you’d like to live. Here’s a list of some of the most affordable places to live in Alaska.
1. Juneau
Juneau, Alaska’s capital, is the second-largest city in America by area. The city has no road networks connecting it to the rest of Alaska or North America and is only accessible by plane or boat. It also has an estimated population of 31,974 people, making it the second-most populous city in the state. The median house income of the city is $84,750 per year, and the cost of living is 121.5, lower than the cost of living in Alaska.
The average rent per month is $2,003. Renters pay about $936 for a studio apartment, $1,101 for a one-bedroom apartment, $1,457 for a two-bedroom apartment, $2,083 for a three-bedroom apartment, and $2,559 for a four-bedroom apartment.
2. Anchorage
Anchorage is the fourth-largest city in the US by area. It’s also the most populous place in the state, housing an estimated 288,000 residents, which is more than 40% of the entire Alaskan population. Anchorage is a thriving metropolis due to its convenient location and attracts many corporations and businesses. What’s more, the median household income is $82,271 per year and the cost of living is 123.5, slightly lower than the cost of living in Alaska.
Renters here pay up to $1,018 for a studio apartment, $1,102 for a one-bedroom apartment, $1,436 for a two-bedroom apartment, $2,078 for a three-bedroom apartment, and $2,524 for a four-bedroom apartment.
3. Fairbanks
Fairbanks is the largest city inside Alaska, with 7,444 miles of land. It is a Home Rule city and the county seat of the Fairbanks North Star Borough. It has an estimated population of 30,917, making it the second-most populous metropolitan area in the state, after Anchorage. The median household income in the city is $55,778 per year, and the cost of living in Fairbanks is 108.6, lower than the cost of living in Alaska.
The average rent for a 1-bedroom apartment is $950 per month. Renters pay about $1,300 for a two-bedroom apartment, and $1,600 for a three-bedroom apartment.
4. Kenai
Kenai is a city in the Kenai Peninsula Borough. It is located 187 miles south of Anchorage and is famous for salmon fishing. It has an estimated population of 7,100 residents. The median household income in the city is $66,064 per year. Also, the overall cost of living here is 104.5, lower than that of the state.
The average rent per month is $1,313. Renters pay approximately $854 for a studio apartment, $863 for a one-bedroom apartment, $1,139 for a two-bedroom apartment, $1,511 for a three-bedroom apartment, and $1,654 for a four-bedroom apartment.
5. Palmer
Palmer is a city in Alaska located 40 miles outside Anchorage. It’s part of the Anchorage Metropolitan Area and has an estimated population of 5,937. The cost of living in Palmer is 121.8, lower than in Alaska, and the median household income is $62,339 per year. It’s also a top pick for the cheapest place to live in Alaska.
On average, renters pay $1,123 per month. You can find a studio apartment for around $750, a one-bedroom apartment for $790, a two-bedroom apartment for $1,050, a three-bedroom apartment for $1,520, and a four-bedroom apartment for $1,840.
Although renting a house in Alaska may seem expensive, there are many cities in the state where you’re likely to find a house that fits your budget. With the help of a real estate expert, you can easily find a house that meets all your housing needs.
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