Alaska has small fishing villages like King Cove, Santa’s house in the North Pole, and super great, super affordable places to call home.
Whether on the side of Alaska’s Denali or a bay town like Sand Point, Alaska has an affordable place to live that will fit any lifestyle. And that’s where we come in. We used Saturday Night Science to look at the US Census data on home prices, rents, and cost of living for every town in The Last Frontier.
If you’re looking to become an Alaskan and don’t want to be left out in the cold, check out the most affordable places in Alaska for 2024.
Table Of Contents: Top Ten | Methodology | Table | FAQs | Summary
The 10 most affordable places to live in Alaska
So, what is the cheapest place to live in Alaska? The cheapest place to live in Alaska is Kenai according to the most recent Census data.
Did we mention the Alaska kickback? Yes, every Alaskan gets a certain percentage of the state’s oil revenue- the Alaska Permanent Fund. That is probably why Alaska’s statewide median income is nearly $73,000.
Check out some more reading about Alaska and the cheapest places in the country:
The 10 Cheapest Places To Live In Alaska For 2024
/10
Population: 7,477
Overall Cost Of Living Index: 117
Median Income: $77,335
Median Home Price: $304,984
Median Rent: $1,114
On the Kenai Peninsula near Anchorage, Kenai stands as the most affordable city in Alaska. It has a cost of living index of 117, as low as you can go against the state average, coupled with a competitive $77,335 median income. The housing market reflects Alaskan affordability with a median home value of $304,984, not bad for the Frozen Frontier.
Looking for an affordable adventure in Kenai? You can explore the Kenai National Wildlife Refuge, visit the Holy Assumption of the Virgin Mary Church, or enjoy the views of the Kenai River and the Kenai Mountains.
More on Kenai: Data | Crime | Cost Of Living | Real Estate
/10
Population: 6,091
Overall Cost Of Living Index: 118
Median Income: $68,929
Median Home Price: $384,706
Median Rent: $1,101
By the standards of Alaska, Palmer counts as a suburb of Anchorage. Sure, it’s more than a 45-minute drive to the state’s largest city. But given the distances involved in the Last Frontier, that’s practically next door. Plus, Palmer comes in at number 2 on the list of most affordable places to live in Alaska.
Palmer is built along the Matanuska River, just off a key highway intersection. This makes it an important regional hub. The position gives the community an economic boost, with median incomes of $68,929. Meanwhile, the unemployment rate hovers at 9.63%.
The 6,091 residents of Palmer get good value for their home-buying buck. The median home value for the area comes in at $384,706. At the same time, the median rent is $1,101 per month.
Overall, the cost of living is about 10% above the national average. But Alaska tends to rank high in those categories, so compared to the rest of the state that’s relatively moderate.
This affordability comes with a high standard of living. Along with the natural splendor of the region, there are other amenities that come with living in Palmer. For example, schools in the area are good, with many scoring a 7/10 or more on Great Schools.
More on Palmer: Data | Crime | Cost Of Living | Real Estate
/10
Population: 8,168
Overall Cost Of Living Index: 122
Median Income: $73,512
Median Home Price: $380,964
Median Rent: $1,214
Ketchikan ranks as the third cheapest city, with a cost of living index at 122. The city pairs a median income of $73,512 with a median home value of 380,964 and a 5.06% unemployment rate.
Some of the things you can do around Ketchikan are visiting the Totem Bight State Historical Park and the Totem Heritage Center.
More on Ketchikan: Data | Crime | Cost Of Living | Real Estate
I love this place. It’s a safe place to raise your children.
The prices of groceries is pretty high. Even though the cost of living is high, it’s awesome to live here.
/10
Population: 9,267
Overall Cost Of Living Index: 123
Median Income: $69,534
Median Home Price: $363,621
Median Rent: $1,105
Would you believe that Wasilla ranks as the fourth cheapest place to live in Alaska? It’s a city where you can learn about the history and culture of Alaska, enjoy the scenic views and wildlife, and experience the thrill of dog sledding or flightseeing.
With the sixth best income-to-rent ratio reflecting efficient use of residents’ earnings for housing costs. The city’s $363,621 median home value aligns well with a $69,534 household income, presenting a balanced cost of living.
More on Wasilla: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,623
Overall Cost Of Living Index: 126
Median Income: $69,757
Median Home Price: $369,327
Median Rent: $1,180
Homer, the fifth most affordable place to live in AK for 2024, has a $1,180 median rent and a $369,327 median home value. Its affordability stems partially from current home prices being well-aligned with local salaries. This means a home here is realistically attainable for many.
Situated on the Kenai Peninsula before vast waterfronts, the overall cost of living is 2.3% lower than the state average.
More on Homer: Data | Crime | Cost Of Living | Real Estate
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Population: 32,496
Overall Cost Of Living Index: 129
Median Income: $69,914
Median Home Price: $281,546
Median Rent: $1,404
Fairbanks, the 2nd most populous city in Alaska, offers a fairly affordable living experience.
Renters benefit from a competitive $1,404 median rent, the state’s eighth lowest. Fairbanks maintains a hot job market despite its cold climate, with a 6.95% unemployment rate. Food and utilities are also relatively cheap in Fairbanks compared to the rest of Alaska. So you’ll have more money in your piece of Fairbanks.
More on Fairbanks: Data | Crime | Cost Of Living | Real Estate
/10
Population: 290,674
Overall Cost Of Living Index: 132
Median Income: $95,731
Median Home Price: $373,986
Median Rent: $1,405
Anchorage ranks seventh in Alaska for affordability based on our 2024 cost of living data. The city’s $95,731 median income, which is the 2nd highest in the state, lets you retain more of your income even after paying for housing.
Despite a cost of living index at 132, Anchorage still offers more affordable living than other pricier Alaskan metros. It also has access to $5 fun at the Alaska Native Heritage Center or hikes along the Tony Knowles Coastal Trail.
More on Anchorage: Data | Crime | Cost Of Living | Real Estate
Loved it in Anchorage, we lived just about a mile in from the ocean and about half a mile to the base of the mountains and start going up. The view was fantastic. In the winter we would get lots of snow and go snow skiing and snowmobile riding. In the summer we did a lot of fishing and hunting.
The winter was the best time of the year because of all the snow. My family and I would go to the ski resort almost every weekend and go skiing. I had a snowmobile so everyday after school I would jump on my snowmobile and go riding with my friends.
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Population: 5,584
Overall Cost Of Living Index: 133
Median Income: $76,765
Median Home Price: $419,391
Median Rent: $1,348
Kodiak, located on Kodiak Island in Alaska’s Kodiak Island Borough, is recognized for its affordability with a #8 ranking among Alaskan cities. The city scored well on transportation, utilities, healthcare, and services.
Alaska is more expensive than the rest of the country because of its location and relative isolation, but places like Kodiak are relatively more affordable. You can also take advantage of free nature instead of paying for fake nature in the lower 48.
More on Kodiak: Data | Crime | Cost Of Living | Real Estate
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Population: 8,462
Overall Cost Of Living Index: 134
Median Income: $95,261
Median Home Price: $499,205
Median Rent: $1,309
Sitka, situated on Baranof Island in southeast Alaska, is an affordable city with a reasonable cost of living index at 134. Like most places on this list, “cheap” is relative to Alaskan averages.
Services are generally expensive in Alaska, but Sitka has slightly lower relative groceries and transportation. Housing is also a significant factor; a home will cost you $499,205 in Sitka.
More on Sitka: Data | Crime | Cost Of Living | Real Estate
/10
Population: 32,108
Overall Cost Of Living Index: 135
Median Income: $95,711
Median Home Price: $465,706
Median Rent: $1,464
Juneau, located in the Alaskan panhandle and the state’s capital, is a relatively affordable city with a $465,706 median home value. Becoming something of a broken record, Juneau is relatively inexpensive for Alaska, but Alaska is expensive.
Services and transportation are relatively affordable compared to groceries and healthcare. You can also enjoy the stunning views of Mendenhall Glacier, hike the Mount Roberts Trail, or visit the Alaska State Museum on the cheap in Juneau.
More on Juneau: Data | Crime | Cost Of Living | Real Estate
Going to Juneau and not seeing the Mendenhall is like visiting Rome and skipping the Colosseum. The most famous of Juneau’s ice floes, and the city’s most popular attraction, flows 13 miles from its source, the Juneau Icefield, and has a half-mile-wide face. It ends at Mendenhall Lake, the reason for all the icebergs.
Mendenhall Glacier welcomes more than 400,000 visitors each year, and it’s easy to see why: aside from its stunning arctic beauty, the glacier is only 12 miles outside Juneau and it’s the only glacier in Southeast Alaska accessible by road. When you’re not gazing at the icebergs, the Coast Mountains will likely grab your attention. Upon arrival, your first stop should be at the visitors center, where you can watch a 15-minute film describing the changing landscape, talk with forest rangers and relax in the warmth of the glacier observation area. You can also pick up a map detailing the various hiking paths around the glacier.
Cheapest places to live in Alaska FAQs
The county in Alaska with the lowest cost of living is Kusilvak Census Area. The average living wage in Kusilvak Census Area is $75,124 according to MIT data. Kusilvak Census Area has the lowest cost of living because it has relatively less expensive childcare and housing costs compared to Alaska as a whole. Childcare costs $7,708 a year in Kusilvak Census Area for two children compared to the Alaska average of $16,624. Housing costs, defined as a blend of the average rent and average mortgage payment, are $10,356 per year in Kusilvak Census Area compared to $14,566 on average in Alaska.
The cost of living in Alaska is 0.4% higher than the US average. According to MIT, the required living wage for a family of four with two working parents in Alaska is $90,080 vs the national average for a family of four with two working parents of $89,744. The median income of a Alaska household is $77,790.
The cheapest housing market in Alaska is Mountain Village. The average home value in Mountain Village is $23,600, the lowest in the state. The average home value in Alaska is $275,600, almost 11.7 times higher than Mountain Village.
Methodology: How we determined the most affordable places to live in the Last Frontier for 2024
Determining affordability for places in Alaska boils down to how much it costs to live here.
You need to understand your costs relative to what people in the rest of the state are paying.
With that logic in mind, we derived several cost of living statistics from the latest Census American Community Survey 2018-2022 for Alaska using Saturday Night Science. We indexed the cost of living statistics across the following categories:
- Housing
- Transportation
- Services
- Groceries
- Healthcare
- Utilities
These are then weighted together to produce an overall cost of living index where 100 is the United States average. Anything below 100 is relatively affordable. Anything over 100 is relatively expensive.
We applied the biggest weight to housing as it typically accounts for 25% or more of your budget. Additionally, housing costs are the highest variant cost across a state. We then compare these cost of living metrics for each place in Alaska to figure out which is the least expensive.
The “Cost of Living Index” allows you to rank all of the 11 places in Alaska that have more than 5,000 people from least expensive to most expensive. Any ties went to the larger city.
The place in Alaska with the lowest cost of living according to the data is Kenai.
We updated this article for 2024. This report reflects our tenth time ranking the cheapest places to live in Alaska.
Alaska Affordabilility Summary
This is an accurate list of the most affordable places to live in Alaska for 2024, if you’re looking at the cost of living numbers in Alaska.
The cheapest cities in Alaska are Kenai, Palmer, Ketchikan, Wasilla, Homer, Fairbanks, Anchorage, Kodiak, Sitka, and Juneau.
Here’s a look at the most expensive cities in Alaska according to the data:
- Bethel
- Juneau
- Sitka
For more Alaska reading, check out:
Cheapest Places To Live In Alaska
| Rank | City | Population | Cost Of Living Index | Median Income | Home Prices | Rent |
|---|---|---|---|---|---|---|
| 1 | Kenai | 7,477 | 117 | $77,335 | $304,984 | $1,114 |
| 2 | Palmer | 6,091 | 118 | $68,929 | $384,706 | $1,101 |
| 3 | Ketchikan | 8,168 | 122 | $73,512 | $380,964 | $1,214 |
| 4 | Wasilla | 9,267 | 123 | $69,534 | $363,621 | $1,105 |
| 5 | Homer | 5,623 | 126 | $69,757 | $369,327 | $1,180 |
| 6 | Fairbanks | 32,496 | 129 | $69,914 | $281,546 | $1,404 |
| 7 | Anchorage | 290,674 | 132 | $95,731 | $373,986 | $1,405 |
| 8 | Kodiak | 5,584 | 133 | $76,765 | $419,391 | $1,348 |
| 9 | Sitka | 8,462 | 134 | $95,261 | $499,205 | $1,309 |
| 10 | Juneau | 32,108 | 135 | $95,711 | $465,706 | $1,464 |
| 11 | Bethel | 6,312 | 138 | $100,852 | $373,847 | $1,546 |
