Best Affordable Places to Live in Alaska in 2024

Best Places to Live in Alaska

Finding the best places in Alaska to live depends on your wants and needs. The cost of living in Alaska is high, so it’s important you think about this move with your budget in mind, first and foremost. If you’re choosing between several possible locations, check out the cost of living by state for each.

You’ll also need to think about if you’d rather be on the coast, such as near Anchorage; inland, like near Fairbanks; or along the Inside Passage, such as near Juneau. Consider elements like climate, access to airports, and the natural landscape when making your decision.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Best Affordable Places to Live in Alaska

Alaska’s most popular cities, including Anchorage and Juneau, are expensive to live in. If you’re trying to move to Alaska on a budget, you’ll want to stick to smaller towns. The exception is Fairbanks, which is somewhat affordable — at least, by Alaska standards.

Regardless, make sure you look into first-time homebuyer programs in Alaska to see how you can save money. And if you’re a newbie homebuyer, use a first-time homebuyer guide to learn more about the process before you start shopping.

1. Palmer

Photo credit: iStock/Wirestock

Palmer is an agricultural town outside of Anchorage; it’s just an hour drive to get to the big city. That’s far enough to find lower housing prices for both purchase and rent, but it still means you have access to Alaska’s largest city by population.

Population: 6,304

Median Household Income: $62,068

Cost of Living: 126.7% of U.S. average

Median Rent Price: $1,053

Home Price-to-Income Ratio: 3.62

Average Property Tax: 1.31%

Housing Affordability: The median rent in Palmer is $1,053, making it an affordable place to settle down in the so-called Last Frontier. Thinking about buying a home? The median home price is just under $225,000.

2. Knik-Fairview

Housing Affordability: The median rent is a little higher here ($1,408 a month), and purchasing a house is a little more challenging, with median home prices above $255,000. Still, Knik-Fairview is considerably more affordable than Anchorage itself. To compete more effectively in the market when home-shopping, think about going through the mortgage preapproval process before your search heats up.

3. Badger

Housing Affordability: Expect to pay a median monthly rent of $1,527 in Badger. Shopping for a home? You’ll pay around $236,000, based on median prices.

Recommended: Tips to Qualify for a Mortgage

4. Homer

Photo credit: iStock/HaizhanZheng

Homer is situated on Alaska’s Kenai Peninsula, in close proximity to Kenai Fjords National Park. Though remote, Homer is stunning. You’ll drive about 1.5 hours to get to Kenai or Soldotna, 3.5 hours to get to Seward, and 4 hours to get to Anchorage.

Population: 5,876

Median Household Income: $63,854

Cost of Living: 126.7% of U.S. average

Median Rent Price: $1,136

Home Price-to-Income Ratio: 4.85

Average Property Tax: 0.70%

Housing Affordability: Rent in Homer is very manageable by Alaskan standards, but its remote location means homes are expensive. The median home price in Homer is $309,500.

5. Fairbanks

Photo credit: iStock/Jacob Boomsma

Fairbanks is one of Alaska’s largest cities, but it’s much more affordable than Anchorage. If you’re moving to Alaska on a budget but still need a connection to people, Fairbanks is top of the list of best places in Alaska to live. The area is home to great restaurants, museums, and festivals, but it still offers access to Alaska’s pristine nature.

Population: 32,107

Median Household Income: $66,572

Cost of Living: 123.0% of U.S. average

Median Rent Price: $1,381

Home Price-to-Income Ratio: 3.36

Average Property Tax: 1.47%

Housing Affordability: Median rent prices in Fairbanks are just under $1,400. Prospective home buyers can actually find good deals in the city; median home prices are under $225,000. (To see what type of home mortgage loan you might qualify for, consider getting prequalified for a home loan before you embark in earnest on your home search.)

Best Places to Live in Alaska for Families

Hoping to raise a family in the 49th state? Here are five great places to live in Alaska with your family:

1. Palmer

Housing Affordability: Palmer is nicely suited for families whether you’re looking to buy or rent your home. Median rental costs are $1,053 a month, and the median home price in Palmer is only $224,500.

2. Fairbanks

Photo credit: iStock/LaraBelova

Want to raise your crew in a city large enough to offer all the commodities a busy family needs? Skip Alaska’s largest city, Anchorage, and think about settling in Fairbanks. Fairbanks offers plenty for your kids to do and still lets you easily access the natural part of Alaska that likely drew you to the state in the first place.

Population: 32,107

Median Household Income: $66,572

Cost of Living: 123.0% of U.S. average

Median Rent Price: $1,381

Home Price-to-Income Ratio: 3.36

Average Property Tax: 1.47%

Housing Affordability: Given that Fairbanks is still one of Alaska’s larger cities, rent is more expensive ($1,381 median monthly cost). Buying a house isn’t unrealistic though, with a median home price of $223,600.

Recommended: What Are the Different Types of Home Mortgages?

3. Juneau

Photo credit: iStock/SCStock

The capital of Alaska is one of the most stunning places in the world. Raising a family here means you’ll have access to city amenities, but natural wonders are just a step beyond your door. Families will find its great schools appealing, but will also want to keep in mind that it is heavily touristed, with cruise ships docking every day.

Population: 31,685

Median Household Income: $90,126

Cost of Living: 114.2% of U.S. average

Median Rent Price: $1,319

Home Price-to-Income Ratio: 3.97

Average Property Tax: 0.98%

Housing Affordability: Rent in Juneau is moderately affordable, as far as Alaska goes. The median monthly rent is just over $1,300. Home ownership is a little less easily attainable, with median prices over $358,000.

4. Cordova

Photo credit: iStock/Gerald Corsi

Cordova is a great place to live with your family in Alaska. Though small, it’s ideally situated to reach Anchorage and the Kenai Peninsula, plus some of the coastal villages farther south. Families will find its combination of good schools and suburban vibe appealing.

Population: 2,248

Median Household Income: $91,442

Cost of Living: 109.7% of U.S. average

Median Rent Price: $1,435

Home Price-to-Income Ratio: 3.73

Average Property Tax: 1.36%

Housing Affordability: Rent is on the higher side in Cordova (a median rent of $1,253 per month), and home ownership is similarly expensive. The median home price in Cordova is $341,100.

5. Sitka

Photo credit: iStock/filo

Unless you’re a commercial fisher, jobs may be harder to come by in Sitka than they are in Juneau. That said, if you have a remote job, Sitka should certainly be on your personal list of the best places to live in Alaska for families. It’s affordable and offers plenty of outdoor activities to keep kids immersed in nature — and the weather tends to be a little less harsh than cities and villages within the Inside Passage.

Population: 8,382

Median Household Income: $82,083

Cost of Living: 133% of U.S. average

Median Rent Price: $1,232

Home Price-to-Income Ratio: 4.48

Average Property Tax: 0.53%

Housing Affordability: Rent in Sitka is more affordable than Juneau, but houses are actually slightly more expensive. To afford the near $368K median home price, you’ll likely need a high-paying remote job to move your family to Sitka.

Best Places to Live in Alaska for Young Adults

Young adults relocating to Alaska will find the most jobs, companionship, and things to do in the larger cities.

1. Anchorage

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If you’re a young adult drawn to the remote adventures that await in Alaska — but you still want trendy restaurants and exciting nightlife — check out Anchorage. It’s the state’s largest city by a landslide, so there’s always something to do. Anchorage also skews fairly young; the median age is 34.3.

Population: 287,145

Median Household Income: $88,871

Cost of Living: 126.7% of U.S. average

Median Rent Price: $1,350

Home Price-to-Income Ratio: 3.69

Average Property Tax: 1.41%

Housing Affordability: Anchorage is sprawling, so housing costs vary depending on the neighborhood. Generally speaking, the median rent is $1,350, and the median house price is $327,500.

2. Fairbanks

Photo credit: iStock/andyKRAKOVSKI

Young adults who want to make a name for themselves in Alaska without the high prices of Anchorage should consider Fairbanks. There’s plenty to do in the city for young people, and the median age is 28.2. Job opportunities abound; some of the largest employers include the University of Alaska, Doyon (a large Native corporation), Fairbanks Memorial Hospital, and authorGEN, a tech company focused on distance learning.

Population: 32,107

Median Household Income: $66,572

Cost of Living: 123.0% of U.S. average

Median Rent Price: $1,381

Home Price-to-Income Ratio: 3.36

Average Property Tax: 1.47%

Housing Affordability: Renters in Fairbanks should expect a median monthly rent of $1,381. Buying a house in Fairbanks is doable for recent college grads with a steady job; the median home price is $223,600 which is one reason this city hit our list of the best places to live in Alaska for young adults.

Recommended: Refinance Your Mortgage and Save

3. Juneau

Photo credit: iStock/urbanglimpses

Juneau offers plenty to do for young adults, including skiing and other outdoor activities. As a bonus, cruise ships visit Juneau every day, offering residents a chance to meet new people and make connections, even in a remote state like Alaska. As the seat of the Alaskan government, it also offers a lot of government job opportunities for young people. The median age does skew a little higher at 38.7.

Population: 31,685

Median Household Income: $90,126

Cost of Living: 114.2% of U.S. average

Median Rent Price: $1,319

Home Price-to-Income Ratio: 3.97

Average Property Tax: 0.98%

Housing Affordability: Young adults who get a good job in Juneau shouldn’t have an issue with the median rent ($1,319). Those who decide to stay in Juneau and build a life will have to save for an expensive home; median prices are more than $358,000.

4. Badger

Housing Affordability: Badger rent is on the higher side ($1,527 median monthly rent), but buying a house feels more doable here than in the bigger cities. The median home price is $236,300.

Recommended: First-Time Homebuyer Guide

5. Ketchikan

Photo credit: iStock/rdbour1923

Ketchikan is one of the most stunning places to live within the Inside Passage. Abundant wildlife, ample hiking, and a thriving art scene make Ketchikan a unique place for young adults to settle down — especially those who don’t like big-city living.

Population: 8,068

Median Household Income: $68,125

Median Rent Price: $1,166

Home Price-to-Income Ratio: 3.97

Average Property Tax: 0.81%

Housing Affordability: Rent and home purchase prices are more affordable in Ketchikan than other places in Alaska. However, the median household income is also lower. If you’re a young adult with a high-paying remote job, you can make your dollars stretch further in Ketchikan than you could buying property in Anchorage. Ready to start home shopping? Visit a home loan help center to learn more about mortgage options.

Best Places to Live in Alaska for Retirees

Retiring in Alaska isn’t logical from a financial perspective: Though Alaska doesn’t have state taxes (and so has the lowest tax burden on the list of best states to retire for taxes), it has a very high cost of living that can eat into retirement savings at a fast clip. It’s also not typical retirement weather, with winter temperatures typically staying well below freezing from November through March.

But if you want a retirement filled with remote adventure, Alaska could be right for you. Here are five places to consider retiring:

1. Ketchikan

Photo credit: iStock/SCStock

Your money may go a little farther in Ketchikan than some other parts of the state. More importantly for retirees, you’ll be surrounded by stunning nature, everywhere you look — not to mention delicious salmon.

Population: 8,068

Median Household Income: $68,125

Median Rent Price: $1,166

Home Price-to-Income Ratio: 3.97

Average Property Tax: 0.81%

Housing Affordability: Retirees looking to rent in Ketchikan should plan to spend about $1,166 a month. But with a low property tax rate of just 0.81%, it may make sense to purchase a home; the median price is just over $270,000.

2. Palmer

Housing Affordability: Palmer’s housing market is much more approachable than Anchorage’s. By retiring an hour outside the big city, you’re looking at median home prices of $225,000 instead of $327,000.

3. Fairbanks

Photo credit: iStock/sarkophoto

Fairbanks offers retirees easy access to an airport, which might be important in the winter when you want to escape the cold. But if the cold is your thing, you’ll love Fairbanks. In fact, the Milken Institute named Fairbanks one of the Best Cities for Successful Aging a few years back, due in part to easy access to health and wellness amenities.

Population: 32,107

Median Household Income: $66,572

Cost of Living: 123.0% of U.S. average

Median Rent Price: $1,381

Home Price-to-Income Ratio: 3.36

Average Property Tax: 1.47%

Housing Affordability: Though Fairbanks is Alaska’s second-biggest city, its homes are much more affordable than Anchorage, which is significantly larger. Retirees should budget $223,600 when buying a home in Fairbanks, based on the median price.

4. Juneau

Photo credit: iStock/chaolik

Juneau’s population over 65 may be small (just under 14%), but that doesn’t mean the spot isn’t friendly to retirees. If you want to live a more active lifestyle in retirement, the capital city of Alaska offers plenty to do, including wildlife watching and symphony orchestras.

Population: 31,685

Median Household Income: $90,126

Cost of Living: 114.2% of U.S. average

Median Rent Price: $1,319

Home Price-to-Income Ratio: 3.97

Average Property Tax: 0.98%

Housing Affordability: Housing in Juneau isn’t cheap. The median home price is more than $358,000, and median monthly rent surpasses $1,319.

5. Kenai

Photo credit: iStock/flownaksala

This coastal town is far enough outside Anchorage to give retirees a sense of remote living, but close enough to get to the airport in three hours — not an everyday drive, of course, but not as inconvenient as some other spots in Alaska. More importantly, Kenai has some of the most stunning scenery in the state, is home to several parks and beaches, and offers plenty of sport fishing, if that’s on your vision board for your retirement.

Population: 7,653

Median Household Income: $70,732

Cost of Living: 118% of U.S. average

Median Rent Price: $1,090

Home Price-to-Income Ratio: 3.30

Average Property Tax: 0.70%

Housing Affordability: Kenai may be a little more remote, but retirees willing to settle here will reap the savings. The property tax is incredibly low, and the median home price is under $234,000. Renting is even more affordable, if you don’t want to settle down permanently; the median monthly rent is just $1,090.

Best Places to Live in Alaska Near the Coast

Fairbanks is a stunning place to live, but it’s far from the Alaskan coast (but much closer to the mountains of Denali!). If you’re looking for coastal Alaskan living, consider making one of these cities your home instead:

1. Sitka

Photo credit: iStock/sphraner

Sitka sits outside the Inside Passage, truly on the Gulf of Alaska. That makes it the perfect coastal spot for boating, surfing, snorkeling, kayaking, and even dolphin and whale watching. If you’re an outdoor water enthusiast, Sitka should be high on your list.

Population: 8,382

Median Household Income: $82,083

Cost of Living: 133% of U.S. average

Median Rent Price: $1,232

Home Price-to-Income Ratio: 4.48

Average Property Tax: 0.53%

Housing Affordability: Housing in Sitka is expensive. The median home price is almost $368,000. Renters face more moderate prices — a monthly median rent of $1,232.

2. Kenai

Photo credit: iStock/andyKRAKOVSKI

Kenai is located at the end of the Kenai River, where it empties into the Cook Inlet. That makes Kenai a water-lover’s paradise. Kenai Beach is stunning, with ancient rock formations and even camping in the summer months.

Population: 7,653

Median Household Income: $70,732

Cost of Living: 118% of U.S. average

Median Rent Price: $1,090

Home Price-to-Income Ratio: 3.30

Average Property Tax: 0.70%

Housing Affordability: Kenai is more affordable than Sitka, with a median home price just over $233,000. Rent is also lower at around $1,090, but keep in mind that Kenai is three hours from the nearest airport.

3. Anchorage

Photo credit: iStock/Jeff Manes

Anchorage sits at the end of the Cook Inlet, right where it forks into two arms. If you want easy access to the coast but don’t want to give up the perks of big-city living — restaurants, breweries, shopping, museums, and more — then Anchorage is the spot for you.

Population: 287,145

Median Household Income: $88,871

Cost of Living: 126.7% of U.S. average

Median Rent Price: $1,350

Home Price-to-Income Ratio: 3.69

Average Property Tax: 1.41%

Housing Affordability: Living in Anchorage has its perks, but you’ll pay for those. The median cost of rent is $1,350, and the median home price is more than $325,000.

💡 Quick Tip: Jumbo mortgage loans are the answer for borrowers who need to borrow more than the conforming loan limit values set by the Federal Housing Finance Agency ($806,500 in most places, or $1,209,750 in many high-cost areas). If you have your eye on a pricier property, a jumbo loan could be a good solution.

4. Juneau

Photo credit: iStock/BriBar

Juneau isn’t on a true ocean coast, given that it’s part of the Inside Passage. But that doesn’t mean you’ll miss out on beautiful water views. Cruise ships roll in daily, and you’ll have the added bonus of dramatic mountainous landscapes here.

Population: 31,685

Median Household Income: $90,126

Cost of Living: 114.2% of U.S. average

Median Rent Price: $1,319

Home Price-to-Income Ratio: 3.97

Average Property Tax: 0.98%

Housing Affordability: Median home prices in Juneau reach nearly $360,000, making this inaccessible for many potential home buyers. Rent is a little more digestible at $1,319 a month.

5. Homer

Photo credit: iStock/matt grimaldi

The small town of Homer is remote and sparsely populated, but it has some of the most jaw-dropping coastal views in all of Alaska. Located near the tip of the Kenai Peninsula, Homer offers easy access to both the Cook Inlet and Kachemak Bay. There are plenty of water sports to be found here, if you’re the adventurous type.

Population: 5,876

Median Household Income: $63,854

Cost of Living: 126.7% of U.S. average

Median Rent Price: $1,136

Home Price-to-Income Ratio: 4.85

Average Property Tax: 0.70%

Housing Affordability: Homer is moderately affordable, as far as Alaska goes. Rental prices are lower at $1,136 a month, but the median home price is nearly $310,000, partially because the town is so remote.

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The Takeaway

Ready to start your long-term Alaskan adventure? Before moving to Alaska, think long and hard about your budget, the climate, and what amenities you want easy access to. Some of Alaska’s most beautiful places are the hardest to reach, with the most extreme temperatures. Larger cities offer more shopping and cultural events, but may not have the same remote Alaskan feel.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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FAQ

How much money do you need to live comfortably in Alaska?

The general rule of thumb is to make roughly three times your rent or mortgage. Given that the median monthly home ownership cost in Alaska is $1,986 ($23,832 a year), you’d need at least $71,496 a year to get by. For some, simply getting by may not mean living comfortably — and this also varies by location. Anchorage, for instance, has a higher median monthly home ownership cost ($2,201).

Is Alaska affordable to live in?

Alaska is a breathtaking state full of adventure, but it is not generally considered affordable to live in. In fact, it has the fifth-highest cost of living of all 50 U.S. states.

How much does it cost to live in Alaska per year?

SoFi has calculated an average annual cost of living in Alaska of $54,331. You may need more than that to live comfortably — or even just to get by in some areas that have higher costs.

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOHL0823036