Since Alaska is such a large state, making Texas and California look small by comparison, residents can choose from a wide range of living situations and locations. The cost of housing depends on the area you want to live, as the state includes a mix of urban, suburban, and rural atmospheres. If you want a small-town vibe, a place like Kenai or Soldotna might be your best bet. When you want the bustling atmosphere of a larger city, living in Juneau or Anchorage can provide that feel. 

Cost of Living in Alaska: Rent Prices

The cost of housing in Alaska varies widely, depending on where you plan to reside. The supply and demand in each region and city impact what you’ll pay in rent each month. According to Zumper rental data, the median price for a one-bedroom apartment in Anchorage is $950 per month. If you want to live in a more rural part of the state, you may be able to find an apartment for $500-$700 a month.

Cost of Living in Alaska: Food and Drink

Although you may be able to pay less in rent by living in a rural part of Alaska, you’ll often make up for the lower cost in other areas that factor into the overall cost of living. The category of food and drink is one of these areas, as transporting produce and other food items to rural places in the state is expensive. The climate of Alaska is not conducive to growing many fresh fruits and vegetables, so most have to be brought in from other states.

Anchorage is the least expensive city in Alaska when it comes to the cost of food, although it’s still higher than the national average for most main grocery items. Residents pay an average of just over $4 for a gallon of milk and $3.38 for a loaf of bread. When dining out, you can expect to pay about $15 per person at a mid-priced restaurant in Anchorage. If you head to Fairbanks for a meal out, the average cost jumps to $20 per person. 

Cost of Living in Alaska: Utilities 

Another element of the cost of living in Alaska is utilities, or the costs associated with keeping your living space comfortable and inhabitable. Since Alaska is known for its long, frigid winters, it’s not too surprising that utilities are some of the highest living expenses in Alaska for residents. The climate does vary between the state’s regions, with milder winters in Kenai than Anchorage, Fairbanks, or some of the more rural areas.

Anchorage residents pay an average of $265.85 per month for utilities, with costs going up in the winter. After all, during certain parts of the year, the temperature may not go over zero degrees Fahrenheit, so keeping your abode warm is essential to your safety and comfort. Since winters in Kenai are a bit milder, residents pay between 5% and 10% less in monthly utilities than those in other areas. However, those living in colder regions often pay over $300 per month, every month of the winter season.

Cost of Living in Alaska: Transportation 

Nearly all Alaskan residents have their own private vehicles to get around, which factors into the transportation costs. The only city where you might be able to get by without a vehicle is Anchorage, which has limited public transportation options. For most people, the cost of living in Anchorage, Alaska, includes a personal vehicle and the associated costs, including fuel and insurance.

Fuel costs are higher in Alaska than in most other places in the U.S. In October 2020, the average cost for a gallon of gas was $2.42 in Anchorage and $2.64 in Fairbanks. According to data presented by AAA, those numbers are higher than the national average by over 30 cents per gallon. Auto insurance premiums vary based on your driving record, age, and zip code. The Zebra reports that the state average cost for auto insurance is $1,152 per year, which is about 19% lower than the national average. 

Cost of Living in Alaska: Leisure and Entertainment

The natural surroundings in Alaska allow for affordable leisure activities among those who enjoy spending time in the great outdoors. While living in the state, you can visit the 24 national parks, which draw more than 3.2 million visitors annually. Some of the most popular parks to visit include Wrangell-St. Elias, which is the state’s largest park, Denali, Glacier Bay, and Katmai. All national parks charge an admission fee, which varies depending on the location.

In addition to the gorgeous scenery, Alaska is home to a number of entertainment venues, museums, and attractions. If you plan to visit the Anchorage Museum, expect to pay about $20 for each adult. Kids and seniors often qualify for lower admission prices to the various museums and attractions. Other entertainment and leisure activities include guided outings, such as a private tour of the Northern Lights or a guided salmon fishing excursion. These outings could run several hundred dollars.

Alaska has several sports teams that play their home games in the state. These include the Anchorage Glacier Pilots and the Anchorage Bucs, both of which are college summer baseball teams located in Anchorage. If you want to catch a home game, you might expect to pay between $5 and $8 for a ticket. 

With so many things to see and do, Alaska is a state that is worth visiting. The natural beauty and profitable work opportunities also make it an appealing place to live. While the cost of living in Alaska in some areas is higher than the national average, the median household income is also higher, indicating the opportunity to make a good income.

Check out apartments and houses for rent in Alaska located throughout the state, and start planning your move.

The post What to Know About the Cost of Living in Alaska appeared first on The Zumper Blog.