Alaska’s cost of living is 25.8% above the US national average due to several factors. The cost of shipping everyday goods to some of the Last Frontier’s major cities and remote towns drives up their prices. It’s recommended that a single adult makes at least $34,786 per year to live comfortably in Alaska.
If you’re looking to add an element of adventure to your life, there’s no better place to do so than Alaska. The country’s second-newest state offers one-of-a-kind sweeping scenery, vast swathes of untouched nature, and a diverse array of wildlife.
If you’re thinking of making the move north, first take a look at this guide to the cost of living in Alaska brought to you by Jerry
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How high is the cost of living in Alaska?
With a cost of living index of 125.8, Alaska is the sixth most expensive state to live in in the country. Although a lot of different things play into this, the largest contender is perhaps the cost of everyday goods.
In case you haven’t looked at a map recently, Alaska is far from the rest of the continental US, so everything from your gas station bag of Cheetos to a bottle of shampoo will cost more to account for the added cost of shipping.
But, what exactly does that 125.8 mean? To put it into perspective, the average cost of living in the United States is an even 100—meaning that it’s 25.8% more expensive to live in Alaska. Let’s take a look at this figure in terms of real-world costs with a little help from MIT’s Living Wage Calculator
. Food: $333 to $980 per month
First up on our list of essential expenses is food. Keep in mind that when we mention food here, we’re strictly talking about groceries. Your late-night DoorDash order or bottom brunch with your pals doesn’t factor into the numbers below.
The data suggest that the annual cost of food in Alaska ranges from $3,999 per year to $11,764 depending on the size of your household. A single adult living on their own in Alaska spends around $333 each month on groceries, while a family of four are nearly triple that at $980 per month. And according to a 2020 report from the Bureau of Labor Statistics, the average US household spends approximately $411 each month to stock their fridges and pantries.
Healthcare: $873 per month
Here’s one of the bitterest pills: the astronomical cost of healthcare in Alaska. At $873 per month or $10,483 per year, Alaska tops the list of the most expensive healthcare out of the fifty states.
Like the cost of everyday goods, this has to do primarily with Alaska’s remote location. Distribution costs in Alaska’s more remote parts are sky-high, and the limited number of specialty physicians also drive up the price of healthcare.
Housing: $1,095 to $3,250 per month
As far as housing in Alaska goes, it’s more common to own a home than rent. 62.4% of Alaska residents own their homes, while just 37.6% are renters.
Alaska has a median home value of $304,357, and the statewide median monthly mortgage currently sits at $1,882 each month.
If you’re looking to rent, you could end up paying more than that depending on what size apartment you’re looking for. The table below lays out the average rents of Alaska’s three most populous cities:
Transportation: $411 to $1,121 per month
We can’t say this enough: Alaska is a pretty spread-out state. At 663,000 square miles, Alaska is two and a half times larger than Texas—and all of the lower 48 states combined are just 4.7 times larger than Alaska.
We mention this to drive home an important point: public transportation is virtually nonexistent in Alaska, so if you want to get around, you’ll need your own set of wheels.
Alaskans pay between $411 and $1,121 per month in order to get around. The national average monthly transportation cost for two people is $818 a month, while in Alaska it’s just $730 per month for two.
Here are a couple of important figures that help put these larger numbers into perspective:
How much you need to live comfortably in Alaska: $34,789 to $96,146 per year
All added up, a single adult must earn at least $34,789 per year (or $16.73 per hour) in order to live in Alaska. It’s much pricier for a family of four: for that size household, you’d need to earn $96,146 per year (or $46.22 per hour).
With Alaska’s minimum wage sitting at $10.34, living comfortably in Alaska can be quite the stretch depending on your income level. After all, life costs more than just the bare minimum. Take a look at some common non-essential expenses in comparison to the national average:
Average cost of a date: $96.90 (US average: $116)
Average cost of a night at the movies: $16.89 (US average: $10.61)
Average cost of a Big Mac Combo Meal: $11 (US average: $5.99)
Average sales tax: 1.76%(US average: 5.09%)
Just because you’re earning less than the nearly $35,000 salary recommended for life in Alaska doesn’t mean that you can’t survive on less than that. However, in most cases, it’s the baseline for covering the most essential living expenses.
The Alaska cities with the lowest cost of living
Sure, Alaska may be expensive—but that doesn’t mean that you can’t find an affordable place to live! There are several Alaskan cities with lower costs of living than the statewide average, but here are our top five picks:
1. Juneau (COLI: 121.5): Alaska’s capital city is, surprisingly, also one of its most affordable! If you’re fine knowing that this waterfront city is only accessible via airplane or boat, life in Juneau may be right for you! It’s got a thriving downtown scene and sees a steady stream of tourists throughout the year.
2. Kenai (COLI: 104.5): This small fishing village is home to some of Alaska’s most breathtaking scenery. The Kenai river is world-famous for its salmon—so bring your appetite with you!
3. King Cove (COLI: 104.1): Like Juneau, King Cove is also only accessible by air or by sea. If you’re looking for a nature lover’s paradise, look no further than King Cove: with miles of coastline and active volcanoes nearby, you’ll never run out of things to explore.
4. North Pole (COLI: 113.4): While this may not be the real North Pole, you can still visit the Santa’s Workshop tourist attraction! Everything in this town has to do with Christmas–making it perfect for those looking to live out their Hallmark daytime movie fantasies.
5. Palmer (COLI: 121.8): 40 miles outside of Anchorage, you’ll find Palmer. In a recent survey, it was recently named the second-best city in Alaska for millennials for its lower housing prices and charming local businesses.
How to easily find home and car insurance in Alaska
Finding Alaska car insurance policies
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