cost of living in alaska

What Are The Cost Of Living In Alaska? 

Alaska had been a topic of conversation for a long time because of the higher cost of living in Alaska. If you are a lover of outdoor roaming, are brave enough to handle below-freezing winters, and love the idea of seeing the Northern Lights in person, then there is no better place for you than Alaska. Alaska is a state located in the Western United States in the Northwest extremity of North America. The state is widely known for its wide-open spaces, abundant outdoor experiences, and Alaskan Native culture. Let’s know the cost of living in Alaska

What Is The Cost Of Living In Alaska? 

The cost of living in Alaska is 125.8, which is 25.8% more than the average cost of the nation which is 100. Alaska was once among America’s most expensive locations to buy a quarter pounder with cheese. It is because of the rising shipping costs, which raised the overall cost of living in Alaska. Here is the average cost of living in Alaska as compared with the average national cost of living of 100. 

Cost Of Living For Alaska USA 
Housing 134.3100
Grocery 141.7100
Transportation 98.2100
Utilities 169.8100
Health 113100
Miscellaneous 119.5100
Median Home Cost $293,400$291,700
Overall 125.8100

Home Rent 

As you all know, home rent has a great impact on our living costs. Comparing the cost of living in Alaska vs Texas, you will find Alaska more expensive because of expensive home rents. The average rent in Alaska varies according to the area and size of the home. In Alaska, there is a city called Anchorage, which has almost 40% of the state’s population and the cost of living in Anchorage Alaska is more because of the high cost of house rent. The table given below will give you the cost of living in different cities including the cost of living in Fairbanks Alaska, the cost of living in Juneau Alaska, etc, in terms of rental costs. 

City Approx 1 Bedroom Rent Approx 2 Bedroom Rent 
Anchorage $1295$1795
Juneau $1100$2000
Sitka $950 $1800
Fairbanks $850$1300
Ketchikan 1250 $3500

Food Cost 

Do you know the cost of living in Alaska vs California? Among Alaska and California, no one is cheaper, they both have a similar average cost. Next to house costs, food costs can be a major expense for Alaska residents. Actually, a single adult in Alaska will spend $4,153 on groceries per year. Here is the cost of food in different cities in Alaska, which will give you an idea about the cost of living in Sitka Alaska, and the cost of living in Anchorage, Alaska.  

City Approx Dinner Cost For 2 
Anchorage $32
Juneau $36
Sitka $40
Fairbanks $40
Ketchikan $48 

Travel Cost 

Besides food costs and home rental costs, travel costs also greatly contribute to the living costs. While looking at the cost of living in Alaska vs Florida, you will find Alaska more expensive. 

Other Expenses 

Next to travel costs, food costs, and rental costs, there are many other expenses. Let’s know other expenses in Alaska. 

Health Care 

The cost of living increases in Alaska, when you add the cost of healthcare to it. A single adult resident of the state of Alaska spends $2,415 on healthcare costs per year. While $8,056  is required for a family of four in the same period. 

Utility Bills 

Are there some places to live in Alaska for free? No, there is no place to live in Alaska for free. But, you can save some money by living in the rural areas of Alaska. Because the cost of living in rural Alaska is low.  The cold temperature in Alaska makes the residents spend a bulk amount on heating. The national average utility bill is just $240 while the average utility bill in Alaska is a high $270.28. 

Internet Bills

The cost of the internet is not the same but changes as per the Internet providers. There are four such cables, two by Alaska Communications and two owned by GCI. Alaska Communication cables run between Alaska and the Pacific Northwest.  

Fitness 

Staying fit in Alaska can be if you can do your own exercise at your home. With so much increased 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, Alaska is perfect. 

Entertainment 

Whether you are a rugged mountain lover or a fitness fanatic looking to break a sweat in the Alaskan winter, you have got options. Alaska is filled up with fitness and entertainment opportunities for people to take advantage of at any time. 

Taxes 

Alaska does not have a state income tax or sales tax, so residents save a significant portion of their paycheck by living in the state.

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FAQ

Is Alaska Expensive To Live In?

Unfortunately, Alaska is also known for being one of the most expensive states. As of January 2021, the cost of living in Alaska was 24.09% higher than the national average.

How Much Does A House Cost In Alaska?

In general, homes cost a little more in Alaska than the rest of the U.S. According to NeighborhoodScout, the state median home value is $265,385. Furthermore, 71.8% of the homes in Alaska fall somewhere between $108,722 and $435,285 in value.

Are Groceries Expensive In Alaska?

Because it is so remote, Alaska can be an expensive state to live in. According to the website PayScale, the overall cost of living in Anchorage, Alaska is 28 percent higher than the national average. For groceries specifically, Payscale said the cost is 26 percent higher than the average.

What Are The Dangers In Alaska?

Alaska is one of five Pacific states in the United States especially vulnerable to tsunamis, which can be triggered by earthquakes, volcanic eruptions, submarine landslides, or onshore landslides.

Can I Afford To Live In Alaska?

Can You Afford the Average Cost of Living in Alaska? Yes, you can afford the average cost of living in Alaska if you make more than $48,739 per year. With that said, Alaska is one of the most expensive states to live in.

Conclusion 

Alaska is home to the highest concentration of millionaire households in the United States. Also, it has some of the highest-paying professionals in Alaska at approximately $65,265 per year. There are some things that come to mind when you think about Alaska including the northern lights and glacier cruises. Alaska delivers many job options with a federal minimum wage of $10.34 per hour. This is all about the cost of living in Alaska.