Alaska
AKWest · 2 cities tracked · Updated 2026
Alaska is more expensive than the national average. Across the 2 cities we track, the cost of living index averages 118 (US = 100) and typical rent averages $1,865 a month, 3% below the national figure of $1,932.
State Averages
Avg Gas Price
$4.58
Regular unleaded
Avg Rent
$1,865
All units/mo
Avg COL Index
118
vs. 100 national avg
Alaska Cost of Living Analysis
Where the money goes
The biggest cost pressure in Alaska is electricity, at 59% above the national average. The biggest break is car insurance, at 25% below it.
Rent trend
Rent rose an average of 4.3% over the past year across the 2 cities we track, faster than the 2.7% national change. Fairbanks saw the biggest move (up 4.7%), while Anchorage was up just 3.9%.
City to city
Where you live inside Alaska matters. Typical rent runs from $1,839 in Fairbanks to $1,890 in Anchorage, a gap of $51 a month or about $612 a year.
Affordability
Rent, gas, groceries, electricity and car insurance take about 41% of median household income in the counties we track, which ranks near the middle of 51 states. Median household income there averages $91,576 (Census ACS 2023). Groceries are counted at what the average household in the region spends on food at home (BLS Consumer Expenditure Survey).
Energy and driving
Regular gas costs $4.58 a gallon, 15% above the $3.98 national average. A typical electric bill runs about $265 a month versus $166 nationally, and full coverage car insurance averages $1,621 a year versus $2,150.
Groceries
Grocery prices in the West rose 2.4% over the past year (BLS food at home), compared with 1.8% nationally. Item prices on our city pages are national BLS averages, so local stores may be higher or lower.
Built from the AAA, Zillow, EIA, Bankrate, BLS and Census data on this site. National comparisons use typical rent of $1,932 a month and gas of $3.98 a gallon. See the methodology.
Cities in Alaska
Median Household Income by County
Source: Census ACS 5-Year 2023 · 30 counties
| County | Median Income |
|---|---|
| 1Aleutians West Census Area | $107,344 |
| 2Sitka City and Borough | $101,207 |
| 3Bristol Bay Borough | $100,625 |
| 4Juneau City and Borough | $100,513 |
| 5Anchorage Municipality | $98,152 |
| 6Matanuska-Susitna Borough | $90,625 |
| 7Ketchikan Gateway Borough | $89,155 |
| 8Denali Borough | $88,935 |
| 9Chugach Census Area | $88,565 |
| 10North Slope Borough | $86,313 |
| 11Fairbanks North Star Borough | $84,722 |
| 12Kodiak Island Borough | $83,716 |
| 13Northwest Arctic Borough | $81,298 |
| 14Yakutat City and Borough | $80,625 |
| 15Skagway Municipality | $78,594 |
| 16Kenai Peninsula Borough | $77,722 |
| 17Petersburg Borough | $77,026 |
| 18Nome Census Area | $76,643 |
| 19Copper River Census Area | $75,053 |
| 20Dillingham Census Area | $74,250 |
| 21Southeast Fairbanks Census Area | $74,223 |
| 22Aleutians East Borough | $72,692 |
| 23Haines Borough | $72,607 |
| 24Bethel Census Area | $70,616 |
| 25Wrangell City and Borough | $64,545 |
| 26Lake and Peninsula Borough | $64,000 |
| 27Hoonah-Angoon Census Area | $62,500 |
| 28Prince of Wales-Hyder Census Area | $59,079 |
| 29Yukon-Koyukuk Census Area | $52,642 |
| 30Kusilvak Census Area | $48,233 |
Alaska Cost of Living FAQ
Is Alaska expensive to live in?
Alaska is about 18% more expensive than the national average. Across the 2 cities we track, the cost of living index averages 118, where 100 is the US average.
What is the average rent in Alaska?
Typical rent in Alaska averages $1,865 a month across the 2 cities we track as of September 2026, 3% below the national typical rent of $1,932. That ranks the 14th highest of 51 states. The figure is the Zillow Observed Rent Index for all home types.
What is the cheapest city to live in Alaska?
Of the 2 cities we track in Alaska, Anchorage has the lowest cost of living index at 118. The lowest typical rent is in Fairbanks, at $1,839 a month.
What is the most expensive city in Alaska?
Anchorage has the highest cost of living index of the cities we track in Alaska, at 118. The highest typical rent is in Anchorage, at $1,890 a month.
How much is gas in Alaska?
Regular unleaded averages $4.58 a gallon in Alaska as of November 11, 2026 (AAA state average), 15% above the national average of $3.98. That is the 6th most expensive of 51 states.
Is rent going up in Alaska?
Rent in Alaska rose an average of 4.3% over the past year across the 2 cities we track, compared with a 2.7% change nationally.
How much is electricity in Alaska?
Residential electricity in Alaska averages 29.4 cents per kWh (EIA), versus 18.4 cents nationally. At 900 kWh a month, a typical bill is about $265.
How much is car insurance in Alaska?
Full coverage car insurance in Alaska averages $1,621 a year, or about $135 a month (Bankrate and NAIC), compared with $2,150 a year nationally. That is the 10th lowest of 51 states.