Best Affordable Places to Live in Alaska in 2025

Looking for an affordable place to live in Alaska that isn’t far outside of the big city of Anchorage? Take a closer look at Knik-Fairview. You’ll have to drive into Anchorage (it’s about an hour) for most things, but if you like the remoteness of the state, Knik-Fairview could be a place to put down roots.

When you’re ready to make a move, know that when home shopping, it can be wise to go through the mortgage preapproval process to compete more effectively in the market.

Badger may be small, but it’s not far from Fairbanks (see below), so there’s still plenty to do (beyond just enjoying Alaska’s beauty). Badger is a great spot to see the Northern Lights, and it’s also super close to the small city of North Pole, known for its year-round Christmas decorations.

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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.

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.

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Want to raise your crew in a city large enough to offer all the commodities a busy family needs? Think about settling in Fairbanks. It 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.

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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 may find its combination of good schools and suburban vibe appealing. While rents and housing prices may not be exceptional for Alaska, the cost of living in Cordova is quite high, so it may be a stretch for those who are not in high-paying careers.

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Unless you’re a commercial fisher, jobs may be hard to come by in Sitka. 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.

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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 36.

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Young adults may want to consider putting down roots in Fairbanks. There’s plenty to do in the city for young people, and the median age is 28.6. Job opportunities abound; some of the largest employers include the University of Alaska and Doyon (a large Native corporation), Fairbanks Memorial Hospital.

Fairbanks itself is a great city for young adults, but those who want to be a little farther out from the downtown area can settle down in Badger. The median age here is 34.7, and young adults can find plenty of work in health care, construction, public administration, mining, oil and gas, and more.

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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.

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Juneau’s population over 65 may be small (just over 15%), 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.

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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 retirement.

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

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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.

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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 could be the spot for you.