The median home price in Alaska is $346,818 which has increased by 0.4% since last year. The Alaska housing market has witnessed a 0.39% year-over-year decline in the number of homes listed. With only a 2-month supply left, the tight inventory is expected to drive an increase in the median sale price.
As per our research, home prices are relatively higher in southern cities like Juneau. On the other hand, as you move towards the north areas of the Last Frontier like Fairbanks, you can find cheaper housing options.
4 Reasons to live in Alaska 🏂
- Cheaper Houses: The median home sale price in Alaska is ~$346K but you can get houses between $246K and $338K in cities like Kotzebue, Fairbanks, and Valdez. This can save you thousands while enjoying better earning opportunities in the Last Frontier.
- Tax Benefits: Alaska maintains zero state tax rate for all residents.
- Affordable Grocery: Grocery in cities that are listed below is up to 7.2% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the state average and national average. You can save up to $600 per month in rent.
Cheapest Places to Live in Alaska in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Kotzebue | $95,385 | $246,400 | 3,199 | 12.2% | 14.8% |
| Fairbanks | $66,572 | $279,619 | 33,018 | 4.0% | 9.12% |
| Valdez | $99,151 | $293,947 | 3,966 | 8.2% | 4.4% |
| Kenai | $70,732 | $300,155 | 7,452 | 4.5% | 14.1% |
| North Pole | $83,524 | $301,549 | 2,825 | 5.6% | 5.25% |
| Bethel | $100,168 | $336,500 | 6,273 | 9.60% | 13.4% |
| Seward | $2,614 | $338,188 | 14,674 | 8.9% | 10.1% |
7 Cheapest Places to Live in AK
The annual population growth of 2.7% since 2010 is reflective of people’s intention to move to Alaska. If you’re considering shifting to Alaska, here are some cities that offer affordable living options:
1. Kotzebue
| 🟢 Cost of Living Compared to State Average | 1.6%⬇️ |
| 🏡 Median Home Price | $284,100 |
| 💲 Median Rent | $1,940 |
| 🌅 Known For | Northwest Arctic Heritage Center |
Kotzebue is an affordable place to live in Alaska. Its median house rent is $1,685. It also offers affordable transportation which is 26.5% lower than the national average.
Kotzebue, Alaska, has a reputation as the “Gateway to the Arctic,” and it serves as a vital transportation hub in the state’s northwest. The city showcases a rich Inuit culture and allows residents to delve into indigenous traditions and history.
Surrounded by breathtaking natural landscapes, including the tundra and the Chukchi Sea, Kotzebue provides opportunities for outdoor activities such as hiking and wildlife observation.
» Homes for Sale in Kotzebue, AK: Find your dream home in this city.
2. Fairbanks
| 🟢 Cost of Living Compared to National Average | 4%⬆️ |
| 🏡 Median Home Price | $273,517 |
| 💲 Median Rent | $1,750 |
| 🌃 Known For | Aurora Borealis |
Fairbanks is one of the most budget-friendly rental destinations in Alaska with an average home rent ranging from $600 – $2,995. It also offers affordable housing which is 17.1% lower than the national average.
Fairbanks holds renown as the state’s second-largest city and a hub of economic and cultural activity in the interior region. It is known for its extreme winter temperatures and its prime location for experiencing the Northern Lights. The University of Alaska Fairbanks also resides in the city, contributing to its vibrant academic and research community.
» Homes for Sale in Fairbanks, AK: Browse thousands of property listings in Oil City.
3. Valdez
| 🟢 Cost of Living Compared to National Average | 16.5%⬆️ |
| 🏡 Median Home Price | $300,768 |
| 💲 Median Rent | $1320 |
| 🛢️ Known For | Trans-Alaska Oil Pipeline |
With rental costs below the national average, Valdez stands as one of the most affordable cities to live in Alaska. The house rent price is between $950 to $2,000.
Valdez, Alaska, boasts stunning natural beauty, with the Chugach Mountains, glaciers, and the Prince William Sound surrounding it. The town plays a major role as a port and acts as the southern terminus of the Trans-Alaska Pipeline System.
» Homes for Sale in Valdez, AK: View all the properties for sale in this city.
4. Kenai
| 🟢 Cost of Living Compared to National Average | 1.6%⬆️ |
| 🏡 Median Home Price | $300,155 |
| 💲 Median Rent | $1,495 |
| 🏖️ Known For | Kenai Beach |
Kenai offers budget-friendly living with an average rent ranging from $1,030 – $2,400. With transportation costs being 21.9% lower than the national average, the city stands out as one of the most inexpensive places to live in Alaska.
The abundant waters of the Kenai River in Kenai, Alaska, draw anglers to its exceptional salmon fishing, making it renowned for this activity. The nearby Kenai National Wildlife Refuge offers opportunities for hiking and wildlife exploration. The vibrant Alaskan community’s cultural depth is enhanced by Kenai’s historical significance, which stems from its Russian heritage and early fur trading days.
» Homes for Sale in Kenai, AK: Browse through thousands of affordable properties.
5. North Pole
| 🟢 Cost of Living Compared to National Average | 4%⬆️ |
| 🏡 Median Home Price | $301,549 |
| 💲 Median Rent | $1900 |
| 🎅 Known For | Santa Claus House |
North Pole’s cost of housing is 8.9% lower than the national average. The average transportation expenses are 8.5% lower than the national average.
While the city is not located at the geographic North Pole, its unique theme and festive atmosphere make it a charming destination for those seeking a touch of Christmas magic. The town’s Christmas spirit is embraced, with street names such as Santa Claus Lane and a large, illuminated Santa Claus statue.
» Homes for Sale in North Pole, KY: Browse through thousands of properties in this flagship city.
6. Bethel
| 🟢 Cost of Living Compared to National Average | 33.4%⬆️ |
| 🏡 Median Home Price | $336,500 |
| 💲 Median Rent | $2,200 |
| 🏫 Known For | Outdoor Activities |
The average house rent in Bethel ranges from $1,400 to $2,500. With an average household income of $100,852, you can comfortably live in this city.
Bethel’s diverse population fosters a rich cultural experience in the city. Bethel also allows access to the natural beauty of the surrounding tundra and the Kuskokwim River. The city fosters a strong sense of community, with various events and activities like Clean Up Green Up and K300 Dog Sled Race that promote interaction and connection among residents.
» Homes for Sale in Bethel, AK: Find a home in one of the cheapest places to live in Pennsylvania.
7. Seward
| 🟢 Cost of Living Compared to National Average | 1.6%⬆️ |
| 🏡 Median Home Price | $338,133 |
| 💲 Median Rent | $2,250 |
| 🖼️ Known For | Outlet Shopping |
Seward is indeed one of the best places to live in Alaska, with a slight year-over-year median home price decline of 1.8% in December 2023. The annual expenditure on food for an individual amounts to $3,405. This makes it one of the most budget-friendly options across the country.
Seward offers abundant opportunities for outdoor enthusiasts, including hiking, fishing, kayaking, and wildlife watching, fostering an active and adventurous lifestyle.
The city also boasts breathtaking landscapes with mountains, fjords, and wildlife, providing a picturesque environment for residents to enjoy outdoor activities and stunning views.
» Homes for Sale in Seward, AK: Get yourself a home in this vibrant town.
- 🏡 Do You Need Professional Assistance While Buying a Home?
Look no further! You can access a network of top real estate professionals through Houzeo Pros. They will cater to all your needs and requirements.
The Bottom Line
The cost of living in Alaska is 30% higher than the national average. It is home to some of the most expensive cities in America. However, if you want to shift to Alaska, you can find affordable housing in cities like Fairbanks, Kenai, and Kotzebue.
Cities like Fairmont and Crookston have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
Find Homes for Sale in AK Under Your Specific Budget
Find an Affordable House With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in Alaska on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Alaska, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
FAQs
What is the cheapest place to live in Alaska?
The cheapest place to live in Alaska is Kotzebue. It offers one of the most affordable utilities in the state, which is 1.6% lower than the state average.
» 7 Cheapest Places to Live in Alaska: Find out the other cheapest places to live in Alaska
Is Alaska the cheapest place to live in?
No, it is not. The median home value is $346,818. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
.webp)
