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Cost of Living in
Alaska

Living cost is 24.84% higher than avg
Families spend upto $11,080/mo on avg
Homeowners spend $10,754/mo on avg
Renters spend $5,700/mo on avg

Cost of Living in
Alaska

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A Breakdown of the Cost of Living in Alaska

U.S. Avg.

Alaska

Difference Diff

Home Price

$532,491

$652,578.4

23%

Apartment Rent (per month)

$1,367

$1,722.6

26%

U.S. Avg.

Alaska

Difference Diff

Phone (per month)

$219.4

$195.86

11%

Total Energy (per month)

$200.23

$346.77

73%

U.S. Avg.

Alaska

Difference Diff

Grocery Staples

Corn Flakes (per box)

$6.79

$8.11

19%

Frozen Corn (per bag)

$2.41

$2.7

12%

Frozen Meal (per package)

$4.85

$4.72

Cooking Oil (per bottle)

$6.16

$10.57

72%

Detergent (per bottle)

$19.51

$23.4

20%

Facial Tissues (per box)

$2.85

$3.05

Sweet Peas (per can)

$1.83

$2.11

15%

Sugar (per bag)

$4.66

$6.17

32%

Bread (per loaf)

$3.87

$5.67

46%

Frying Chicken (per lb)

$1.64

$2.94

79%

Meat & Poultry

Chicken (per lb)

$1.71

$2.87

68%

Steak (per lb)

$14.54

$19.2

32%

Sausage (per lb)

$5.23

$6.1

17%

Ground Beef (per lb)

$8.61

$9.26

Snacks & Beverages

Soft Drink (per bottle)

$3.45

$4.24

23%

Potato Chips (per bag)

$5.54

$5.47

Coffee (per lb)

$6.55

$7.95

21%

Fresh Orange Juice (per half gallon)

$5.22

$5.93

14%

Fruits & Vegetables

Peaches (per can)

$4.40

$3.26

26%

Lettuce (per head)

$1.98

$2.45

24%

Bananas (per lb)

$0.64

$1.06

66%

Potatoes (per bag)

$5.58

$6.82

22%

Dairy & Eggs

Parmesan Cheese (per lb)

$4.69

$5.24

12%

Margarine (per lb)

$1.30

$2.1

61%

Eggs (per dozen)

$3.98

$4.55

14%

Whole Milk (per gallon)

$4.08

$5.24

29%

Seafood

Chunk Light Tuna (per can)

$1.22

$2.07

70%

U.S. Avg.

Alaska

Difference Diff

Tire Balance (per tire)

$70.23

$77.38

10%

Gasoline (per gallon)

$2.9

$3.94

36%

U.S. Avg.

Alaska

Difference Diff

Doctor Visit (per visit)

$116.03

$308.76

166%

Dentist Visit (per visit)

$145.11

$167.77

16%

Ibuprofen (per bottle)

$12.38

$12.95

Prescription Drug (per month)

$20.8

$19.7

Optometrist Visit (per visit)

$95.27

$296.1

211%

U.S. Avg.

Alaska

Difference Diff

Women’s Slacks

$35.43

$44.59

26%

Boys’ Jeans

$29.47

$28.26

Men’s Shirt

$39.36

$48.8

24%

Wine (per bottle)

$7.51

$13.67

82%

Beer (per 6-pack)

$11.17

$13.04

17%

Veterinary Services (per visit)

$65.33

$92.07

41%

Tennis Balls (per pack)

$3.59

$5.15

43%

Yoga (per class)

$12

$17

42%

Movie (per ticket)

$11.67

$14.99

28%

Newspaper (per copy)

$19.31

$11.24

42%

Washer Repair (per service)

$109.47

$106.83

Women Slacks

$34.88

$42.29

21%

Boy Jeans

$29.51

$28.33

Man Dress Shirt

$39.05

$45.83

17%

Dry Cleaning (per item)

$13.45

$20.55

53%

Shampoo (per bottle)

$1.55

$1.44

Toothpaste (per tube)

$3.64

$4.12

13%

Beauty Salon (per visit)

$47.5

$64.39

36%

Haircut (per cut)

$27.08

$30.11

11%

Fried Chicken (per serving)

$4.37

$9.67

121%

Pizza (per pizza)

$11.99

$15.26

27%

Hamburger (per serving)

$5.28

$7.03

33%

The cost of living in Alaska is 24.84% higher than the national average, and it shows up in nearly every receipt. Groceries in Alaska travel by barge or cargo plane. Heating bills aren't optional. Bargains are hard to come by. Still, thousands choose to trade lower costs for the unparalleled lifestyle in the Last Frontier. The wide-open skies, glacier-fed rivers and the northern lights make the higher prices worth the while.

Housing is 23% higher than the US average. The median home price in Alaska is approximately $652,578.40, compared to the US average of $367,969. Cities like Anchorage and Juneau tend to have higher prices due to limited inventory, while smaller towns may offer more affordability. A 20% down payment lands near $74,500, and monthly mortgage payments also trend higher due to energy efficiency needs and location-related premiums.
Rent in Alaska is 26.0% higher than the national average. A one-bedroom home in Alaska costs $1,722.60 per month, while a two-bedroom costs $1,900. Heat is often charged separately, and older units may lack dishwashers or in-unit laundry. Amenities vary by area, but expect to pay more for basic comforts like parking or updated appliances.
Utility costs are 31% higher than the national average. Electricity bill costs $346.77 per month, and heating oil often exceeds $3.74 per gallon. The internet ranges from $195.86 per month, and water bills cost around $87. Condo residents may pay $300 to $500 monthly in HOA fees, for shared services like snow removal.
Food and groceries are 23% higher than the US average. With most goods shipped in, Alaska grocery prices are high. The price of milk in Alaska is over $5.24, eggs $4.55, and bread $5.67. A family of four spends $1,400 to $1,800 per month, while a single adult can expect $450 to $600. Moreover, produce availability drops in winter, especially outside urban areas.
Transportation costs are 19.51% higher than the national average. The cost of gas in Alaska is $3.94 per gallon, and insurance averages $169 to $203 per month. Snow tires, engine heaters, and winter maintenance drive up costs. Outside Anchorage, public transit is minimal, and bush planes or ferries are often the only travel options.
Healthcare is 80.29% higher than the US average. Basic doctor visits cost $308.76, and ER trips cost between $2,000 to $2,500 without insurance. Dental cleanings average $167.77. In many areas, specialty care requires flying to Anchorage or out of state, which adds both cost and travel time.
Miscellaneous expenses are 16.55% higher than the national average. Gyms cost $40 to $60 a month, and child care is $1,000 to $1,200 per child. A dinner for two lands near $80 to $120, and movie tickets are $14.99. Outdoor recreation is abundant, but gear rentals and tour fees quickly add up.

Moving to Alaska? Be ready to pay more—especially for groceries and heating. But hey, the views are priceless, as long as your paycheck can handle the cold!

👉 Next Step: Compare homes for sale in Alaska. Cost of living data is sourced in part from the Council for Community and Economic Research (C2ER). Figures are provided for informational purposes only and may not reflect real-time changes.

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Is Living in Alaska Expensive?

Yes, Alaska is expensive to live in. The average cost of living in Alaska is 24.84% higher than the national average, driven primarily by elevated prices for healthcare (80.29 higher) and groceries (23 higher). Utilities, transportation, and everyday items also trend above average, largely due to the state's remote location and high shipping costs.

Housing costs are 23% higherthan the US average, which makes homeownership a challenge for many middle-class families. With a $652,578.40 budget, you could purchase a spacious single-family home in Anchorage, but that same amount might stretch further in places like Boise or Oklahoma City, where housing is significantly cheaper. For Alaskans, higher everyday costs mean that even a solid income can feel the pinch without careful budgeting.

Housing in Alaska

Housing cost in Alaska is 23% higher than the national average, influenced by the location and Alaska's unique climate demands. Mortgage rates generally hover between 6.5% and 7%, but buyers should factor in additional expenses like heating and property maintenance.

Buying a House in Alaska

If you're a young professional or single individual, homes in Anchorage are popular choices. Condos and smaller homes here range from $300,000 to $450,000, offering easy access to restaurants, shops, and public transit. Monthly mortgage payments typically fall between $2,400 and $3,500 per month. Despite public transit options, many residents rely on cars due to Alaska's vast geography.
If you're a married couple with young children, homes in Eagle River and West Anchorage stand out. Three-bedroom homes usually cost between $450,000 and $700,000. These neighborhoods offer parks, family-friendly amenities, and schools such as Birchwood Elementary and Gladys Wood Elementary, known for their strong early education programs. Mortgage payments typically range from $4,400 to $4,800 per month.
If you're a married couple with older children, larger homes in Hillside provide spacious yards and access to top schools like West Anchorage High and Bartlett High. Home prices for larger properties in Alaska typically range from $600,000 to $900,000, with mortgage payments usually falling between $5,500 and over $6,700 per month. While some commuting is required, these neighborhoods offer a balance of suburban comfort and city amenities.

Renting a House in Alaska

Rent in Alaska is 26.0% higher than the national average. While the typical US rent for a one-bedroom home is around $1,200 per month, Alaska's one-bedroom rentals range from 1,722.60. Two-bedroom homes typically cost between 1,722.60 monthly, depending on the neighborhood and amenities.<

If you're a young adult or single renter, homes in Fairview and Downtown Anchorage offer one- and two-bedroom homes ranging from 1,722.60 per month. These areas provide easy access to nightlife, local cafes, and public transit. While nightlife is more low-key than in bigger cities, Anchorage's growing craft brewery scene and cultural events help liven up these neighborhoods.
If you're a married couple with young children (under 6), consider renting two- or three-bedroom homes in Spenard or Russian Jack. Rent here ranges from 1,722.60. These areas offer parks, playgrounds, and reputable schools, along with quick access to healthcare facilities, making them ideal for young families.
If you're a married couple with older children (ages 6 to 17), three- or four-bedroom homes in Eagle River or Mountain View cost between 1,722.60 per month. These neighborhoods are close to top-rated schools like Clark Middle School and West High School. Their family-friendly amenities and outdoor spaces are also perks, though public transit options can be limited.
If you're a retiree or downsizer, one- or two-bedroom homes in Airport Heights and Midtown Anchorage offer a quieter lifestyle. Monthly rents range from 1,722.60. These neighborhoods have healthcare centers nearby, easy access to shopping, and well-maintained community parks: perfect for low-maintenance living.
If you're an international student, shared apartments or smaller one-bedroom homes near the University of Alaska Anchorage typically cost 1,722.60 monthly. Student housing is limited, so many opt for rental homes in University District or Muldoon. These areas provide public transit access and proximity to campus, keeping commutes short and affordable.

Utilities in Alaska

Food and Groceries in Alaska

Transportation in Alaska

Healthcare in Alaska

Healthcare costs in Alaska are 80.29% higher than the national average, making medical expenses one of the most significant budget considerations if you're moving here. Remote locations, harsh weather, and transportation challenges all contribute to these elevated costs. Still, good healthcare access and quality care options are available across the state.

Doctor Visit — $308.76+ per visit: Routine appointments with a general practitioner can start around $308.76, covering check-ups, flu symptoms, and treatment for chronic conditions. Specialized care or urgent visits often cost more, especially given the limited number of providers outside urban centers.
Dentist Visit — $167.77+ per visit: A basic dental cleaning typically costs $167.77 or higher. Fillings can range from $250 to $350, with additional costs for X-rays or fluoride treatments. Dental care prices in Alaska are well above the national average, due to fewer clinics and higher operating costs.
Optometrist Visit — $296.10+ per visit: Eye exams average about $296.10, including vision testing and prescription updates. Contact lens fittings and treatments for specific eye conditions can add $75 to $200 more.
Prescription Drugs — $19.70+ per prescription: Medications for chronic illnesses, like Lisinopril or Metformin, may cost $40 to $60 per month without insurance. Short-term prescriptions such as antibiotics often cost between $30 and $50.
Over-the-Counter Medications — $12.95+ per package: Basics like ibuprofen, allergy medicine, and cold remedies usually cost $12.95 or more, reflecting the higher shipping and retail prices in Alaska.

The state's rugged environment and isolated communities increase healthcare delivery costs, which explains why bills tend to be steeper compared to states like Texas or Georgia. Winters can also mean more injuries from slips and falls, so having reliable healthcare and insurance is crucial.

Health insurance is recommended, with average monthly premiums ranging from $700* to $1,200*, depending on plan details and coverage. This helps manage the high cost of care, and ensures you're covered whether it's a routine check-up or an unexpected emergency.

Disclaimer: These figures are averages and can vary based on individual circumstances and specific insurance providers. Always compare plans and consult professionals to find the best fit for your healthcare needs.

Miscellaneous Costs in Alaska

Miscellaneous expenses in Alaska are 16.55% higher than the national average. Thanks to its remote geography and supply chain challenges, even everyday luxuries—from grabbing a coffee to grooming your pet—tend to come with a higher price tag.

Food and Drinks: Eating out in Alaska can get expensive fast. A basic burger will cost you around $6.25, while a full sit-down meal with sides and a drink may range from $28 to $40 per person. Tacos land in the $4.50 to $7 range, depending on the ingredients and location, and a slice of pizza usually costs between $4 and $5.50. Sushi rolls average $14 to $20, especially at mid-range spots in cities like Anchorage or Fairbanks. A brewed coffee is close to $4.50, and craft beer from a local brewery will set you back $7 to $9 per pint.
Personal Care and Grooming: A basic haircut averages $27 to $35, while salon services like shampoo, blow-dry, and styling hover around $50 to $70. Skincare treatments such as facials typically cost $75 to $130, depending on the service. Manicures fall in the $28 to $35 range, and a one-hour massage starts at $85, easily exceeding $100 in resort towns or spas.
Clothing and Laundry: Alaska’s climate means your wardrobe needs to work harder; think insulated jackets, waterproof boots, and thermal layers. A quality pair of jeans can cost $32, while a dress shirt runs about $40. Dry cleaning is slightly higher than average at $18.50 per visit. Fortunately, most homes are equipped with washers and dryers, making at-home laundry a more economical option than weekly trips to the cleaners.
Fitness and Entertainment: A yoga class ranges from $20 to $25, and a movie ticket is around $13.75. While gym memberships and indoor classes can be on the expensive side due to limited availability, Alaska’s great outdoors offer plenty of free or low-cost entertainment. Hiking, skiing, snowshoeing, and kayaking are local favorites—and while the gear may cost upfront, the adventures are endless and wallet-friendly after that.
Pet-Related Expenses: If you're moving with your furry friend, be prepared for higher vet costs. A routine visit costs $70 to $90, while emergency care can quickly reach $600 or more. The cold also means investing in extras like booties, jackets, and heated bedding for your pets. On the bright side, Alaska offers loads of pet-friendly spaces, like University Lake Dog Park in Anchorage, where pups can enjoy the snow right alongside you.

What Salary Do You Need to Live in Alaska?

The state's median income is 24.84% higher per year, slightly above the national average. But with living expenses in Alaska being significantly higher than elsewhere, most residents need $75,000 to $110,000 annually to live comfortably.

Homeowners spend $129,043.00 per year on housing, utilities, food, transportation, and healthcare. That includes mortgage payments, winter heating costs, and home maintenance specific to Alaska's harsh climate.

Renters spend $68,395.00 per year to cover rent, basic living expenses, and discretionary spending. Monthly rent and higher grocery bills account for the bulk of that cost.

Families with kids spend $132,962.00 per year, once you factor in childcare, food, healthcare, larger housing, and school-related costs. The lack of widespread services in rural areas can lead to additional travel and logistical expenses.

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What is a Cost of Living Calculator?

A cost of living calculator helps you compare the expenses required to live in a different location. The calculator factors in various living expenses like housing, food, utilities, transportation, fitness, and entertainment, etc., and helps you estimate how much salary you need to live in that city. Since the cost of goods and services varies in different cities, a Alaska cost of living calculator can help you make the decision to move to this city or not.

About Cost of Living Data

The data used to determine Alaska's cost of living is sourced from the Council for Community and Economic Research (C2ER). Published since 1968, COLI data is recognized by the U.S. Census Bureau and the Bureau of Labor Statistics. This organization regularly updates its data to offer a detailed and well-researched view of living expenses in cities across the country. An independent Advisory Board reviews C2ER’s data collection methodologies and quarterly publications to ensure consistency and quality. For more information, visit www.coli.org. Data published as of Oct 2025.

Frequently Asked Questions

How much is gas in Alaska?

The cost of gas in Alaska averages $3.94 per gallon, which is significantly higher than the national average. Remote locations and the added cost of transporting fuel drive prices up. If you're in rural areas or planning long drives between towns, you'll be refueling often, so factor that into your monthly budget.

Is Alaska a good place to live?

Yes, Alaska is a great place to live if you enjoy natural beauty, outdoor adventure, and a slower pace of life. Cities like Anchorage and Fairbanks offer access to modern amenities, while smaller towns provide close-knit communities. However, long winters, limited daylight, and a high cost of living can be challenging for some buyers.

What is the cost of living in Alaska?

The overall cost of living in Alaska is 24.84% higher than the national average. Essentials like groceries, healthcare, and utilities are all above national norms due to shipping costs and geographic isolation. While housing can be more affordable in rural parts, everyday expenses still add up fast.

What is the average rent in Alaska?

A one-bedroom apartment in Alaska rents for $1,722.60 to $1,800 per month, depending on the city. Anchorage and Juneau are on the higher end, especially if you're close to downtown or the waterfront. In smaller towns, you might find more space for less, but amenities may be limited.

How much is a two-bedroom home in Alaska?

A two-bedroom home in Alaska typically costs between $2,000 and $2,400 per month. Places like Anchorage, Eagle River, and Juneau have higher rates, particularly in well-connected or scenic areas. Utilities and heating costs are also a major consideration during long winters.

What is the Alaska minimum wage?

As of July 2025, Alaska's minimum wage has increased to $13 per hour. While it's higher than the federal minimum, it often falls short of due to Alaska's high cost of living, especially for essentials like housing, food, and healthcare.

What is the average price of utilities in Alaska?

Utilities in Alaska range from $140 to $450 per month, depending on the season and location. Winters are long and cold, so heating bills can drive up your total.

How much is childcare in Alaska?

If you're moving to Alaska, plan on spending $1,000 to $1,200 per month for toddler childcare. Costs are higher in cities like Anchorage and Fairbanks, where daycare centers are in greater demand. In more remote areas, you might pay a bit less. However, access can be limited, and options may include smaller in-home setups, rather than formal facilities. Availability is a major factor, so it's key to secure a spot early.