Before you decide to relocate to Alaska, it’s important to research the exact cost of living around the state. And that’s what we’re going to help you do.
These are the places in Alaska that cost a pretty penny — the most expensive cities in the state.
We used Saturday Night Science to compare the 2019-2023 American Community Survey on cost of living for the 22 places in Alaska with more than 5,000 people.
After we saved up for months and could finally afford it, we landed on this list of the ten most expensive cities in Alaska for 2025.
Table Of Contents: Top Ten | Methodology | Summary | Table
The 10 Most Expensive Places To Live In Alaska For 2025
What’s the most expensive place to live in Alaska? Well, HomeSnacks crunched the numbers and discovered that Bethel is the most expensive place to live in Alaska.
Kenai (the cheapest place to live in Alaska) can show these guys how to live on a budget in the coming years. Read on for how these places had costs rise faster than inflation.
And if you already knew these places were expensive, check out some more reading about Alaska and the most expensive cities in the country:
The 10 Most Expensive Places To Live In Alaska For 2025
/10
Population: 6,313
Cost Of Living Index: 138
Median Income: $109,718
Average Home Price: $354,400
Home Price To Income Ratio: 3.2x
More on Bethel: Data
The overall cost of living in Bethel is 138. The median income in Bethel comes in at $109,718 and the average home value is $354,400 for 2025.
/10
Population: 31,969
Cost Of Living Index: 135
Median Income: $100,513
Average Home Price: $432,500
Home Price To Income Ratio: 4.3x
More on Juneau: Data
The overall cost of living in Juneau is 135. The median income in Juneau comes in at $100,513 and the average home value is $432,500 for 2025.
/10
Population: 5,861
Cost Of Living Index: 135
Median Income: $117,260
Average Home Price: $331,200
Home Price To Income Ratio: 2.8x
More on Steele Creek: Data
The overall cost of living in Steele Creek is 135. The median income in Steele Creek comes in at $117,260 and the average home value is $331,200 for 2025.
/10
Population: 8,393
Cost Of Living Index: 134
Median Income: $101,207
Average Home Price: $442,100
Home Price To Income Ratio: 4.4x
More on Sitka: Data
The overall cost of living in Sitka is 134. The median income in Sitka comes in at $101,207 and the average home value is $442,100 for 2025.
/10
Population: 5,497
Cost Of Living Index: 133
Median Income: $71,373
Average Home Price: $314,800
Home Price To Income Ratio: 4.4x
More on Kodiak: Data
The overall cost of living in Kodiak is 133. The median income in Kodiak comes in at $71,373 and the average home value is $314,800 for 2025.
/10
Population: 289,069
Cost Of Living Index: 132
Median Income: $98,152
Average Home Price: $375,900
Home Price To Income Ratio: 3.8x
More on Anchorage: Data
The overall cost of living in Anchorage is 132. The median income in Anchorage comes in at $98,152 and the average home value is $375,900 for 2025.
/10
Population: 19,033
Cost Of Living Index: 132
Median Income: $98,042
Average Home Price: $291,600
Home Price To Income Ratio: 3.0x
More on Badger: Data
The overall cost of living in Badger is 132. The median income in Badger comes in at $98,042 and the average home value is $291,600 for 2025.
/10
Population: 5,927
Cost Of Living Index: 132
Median Income: $140,722
Average Home Price: $411,600
Home Price To Income Ratio: 2.9x
More on Chena Ridge: Data
The overall cost of living in Chena Ridge is 132. The median income in Chena Ridge comes in at $140,722 and the average home value is $411,600 for 2025.
/10
Population: 11,730
Cost Of Living Index: 130
Median Income: $76,831
Average Home Price: $279,100
Home Price To Income Ratio: 3.6x
More on College: Data
The overall cost of living in College is 130. The median income in College comes in at $76,831 and the average home value is $279,100 for 2025.
/10
Population: 32,242
Cost Of Living Index: 129
Median Income: $72,077
Average Home Price: $255,700
Home Price To Income Ratio: 3.5x
More on Fairbanks: Data
The overall cost of living in Fairbanks is 129. The median income in Fairbanks comes in at $72,077 and the average home value is $255,700 for 2025.
Methodology: How We Determined The Most Expensive Places To Live In The Last Frontier For 2025
The two most important things to think about when it comes to being able to afford a city in Alaska are:
- How much money do I make?
- How much do I have to spend to live there?
You need to understand your costs in the context of how much money you make.
For example, if the median household earns $100,000 and spends $40,000 on housing, it’s actually cheaper to live there than a place with a median income of $50,000 and housing costs of $21,000. You might spend more on housing, but you have more money overall to play with.
With that example in mind, we derived several statistics from the latest Census American Community Survey 2019-2023 around incomes and costs. They are:
- Overall Cost Of Living Index
- Median Home Price / Median Income (lower is better)
- Median Income / Median Rent (Higher is better)
- Median Home Price
You can then compare these metrics in each of the places in Alaska to figure out which is the most expensive.
You are left with a “Cost of Living Index” by taking the average rank of each of these metrics for each city.
So we used that cost of living index to rank all of the 22 places in Alaska that have more than 5,000 people.
The place with the highest cost of living in Alaska according to the data is Bethel. We updated this article for 2025. This article is our tenth time ranking the most expensive places to live in Alaska.
Summary: Taking A Chunk Out Of Your Paycheck In Alaska For 2025
Well, there you have it, the places in Alaska that have the highest cost of living, with Bethel ranking as the most expensive city in the Last Frontier.
The most expensive cities in Alaska are Bethel, Juneau, Steele Creek, Sitka, Kodiak, Anchorage, Badger, Chena Ridge, College, and Fairbanks.
Here’s a look at the most affordable cities in Alaska according to the data:
- Kenai
- Palmer
- Meadow Lakes
For more Alaska reading, check out:
- Best Places To Live In Alaska
- Cheapest Places To Live In Alaska
- Most Dangerous Cities In Alaska
- Best Places To Raise A Family In Alaska
- Safest Places In Alaska
- Worst Places To Live In Alaska
Most Expensive Cities In Alaska
| Rank | City | Cost Of Living | Population | Median Income | Average Home Price | Home/Income Ratio |
|---|---|---|---|---|---|---|
| 1 | Bethel | 138 | 6,313 | $109,718 | $354,400 | 3.2x |
| 2 | Juneau | 135 | 31,969 | $100,513 | $432,500 | 4.3x |
| 3 | Steele Creek | 135 | 5,861 | $117,260 | $331,200 | 2.8x |
| 4 | Sitka | 134 | 8,393 | $101,207 | $442,100 | 4.4x |
| 5 | Kodiak | 133 | 5,497 | $71,373 | $314,800 | 4.4x |
| 6 | Anchorage | 132 | 289,069 | $98,152 | $375,900 | 3.8x |
| 7 | Badger | 132 | 19,033 | $98,042 | $291,600 | 3.0x |
| 8 | Chena Ridge | 132 | 5,927 | $140,722 | $411,600 | 2.9x |
| 9 | College | 130 | 11,730 | $76,831 | $279,100 | 3.6x |
| 10 | Fairbanks | 129 | 32,242 | $72,077 | $255,700 | 3.5x |
| 11 | Fishhook | 128 | 5,461 | $101,518 | $361,900 | 3.6x |
| 12 | Knik-Fairview | 126 | 18,921 | $95,000 | $311,800 | 3.3x |
| 13 | Gateway | 126 | 6,716 | $137,150 | $436,200 | 3.2x |
| 14 | Homer | 126 | 5,750 | $73,723 | $363,700 | 4.9x |
| 15 | Kalifornsky | 125 | 8,136 | $91,081 | $306,200 | 3.4x |
| 16 | Sterling | 125 | 6,776 | $110,341 | $346,100 | 3.1x |
| 17 | Tanaina | 123 | 9,738 | $95,587 | $298,500 | 3.1x |
| 18 | Wasilla | 123 | 9,435 | $70,756 | $325,000 | 4.6x |
| 19 | Ketchikan | 122 | 8,151 | $76,835 | $340,300 | 4.4x |
| 20 | Meadow Lakes | 121 | 8,994 | $81,250 | $305,100 | 3.8x |
| 21 | Palmer | 118 | 6,141 | $70,550 | $275,900 | 3.9x |
| 22 | Kenai | 117 | 7,562 | $74,907 | $249,400 | 3.3x |