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Cost of Living In Anchorage, Alaska

Anchorage is Alaska’s largest city, located in the south-central part of the state. This beautiful destination is widely known for its cultural sites, traditional crafts, and rich heritage. Additionally, Anchorage is also a gateway to nearby wilderness regions, including Talkeetna, Kenai, and Chugach. 

Cost of Living in Anchorage Alaska

Wondering about how much does it cost to live in Anchorage Alaska?

Think no more and scroll down the page to learn everything about the cost of living in this city before making a move. The guide covers all essential aspects related to living expenses, including housing rates, taxes, utilities, healthcare, and more. So, without further ado, let’s get started. 

Is living in Anchorage expensive?

Yes, absolutely. You will be amazed to know that living in Anchorage is 23.5% more expensive than the country’s average. The cost of living index in Anchorage is about 123.5, which is way higher than the nationwide average of 100.
There are plenty of reasons that make this city an expensive place to live in. Alaska is big and sparsely populated, making it tough to ship the goods from one place to another. It drives up the cost of nearly everything, from consumer goods to gasoline, and anything in between. 

How much does it cost to live comfortably in Anchorage?

If you are moving to Alaska and decided to settle in Anchorage, make sure to take around $4,000 before taxes to live comfortably. 
The monthly cost of living for a family of four in Anchorage is estimated to be $4,273 without rent. A single person requires $1,220 without rent, which means that you need to earn around four times higher than your monthly rent to live in Anchorage hassle-free. 
Everything in Anchorage is expensive, be it housing, healthcare, or utility; hence you have to make good earnings to live comfortably.

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Cost of Living in Anchorage Alaska

Thinking about cost of living in Anchorage Alaska? The guide mentioned below covers everything you need to know about the expenses before moving to this destination. Anchorage is an expensive place to live in; hence, check all essential aspects here and make an informed decision accordingly. 

1. Food & Groceries prices in Anchorage

Food prices in Anchorage are high. According to Numbeo, an average person spends around $451.71 on food in Anchorage. It is way higher when compared to the national average of $323.72. 

Food & Groceries

According to the PayScale website, the grocery price in Anchorage is around 26% higher than the country’s average. 

MetricsPrice
Milk$0.98
Bread$3.03
Rice$4.4
Eggs$3.32
Cheese$14.4
Apples$5.85
Tomato$5.9

How much are groceries in Anchorage?

The average grocery for one person in Anchorage is estimated to be $451.71. The milk costs around $0.98 per liter and a loaf of bread will cost you $3.03. 

Is food more expensive in Anchorage?

Yes. Food and grocery prices are quite high in Alaska and Anchorage is no exception. Next to housing costs, food can be a major expense for the Alaskan resident. 

2. Housing Rates in Anchorage

Housing plays an integral role while calculating the average cost of living in Anchorage, Alaska. Like all other things, housing price in Anchorage is slightly higher than the country’s average. According to Bestplaces, the median home cost in Anchorage is around $341,100, way more than the state’s average of $293,400. 

House Rates

Additionally, the median listing home price per square foot in Anchorage is $207. 

Is Housing affordable in Anchorage Alaska?

No. Housing is one of the biggest expenses in Alaska. According to the Best places, the cost of housing index in Anchorage is 144.6, slightly higher than the state’s average of 134.3. 

What is the average cost of a home in Anchorage Alaska?

The average home value in Anchorage is around $354.9K in March 2022, and the price is raising up 9.2% year-over-year. The value is seasonally adjusted and only includes the middle price tier of homes. 

3. Healthcare Services of Anchorage

Alaska offers great healthcare services and has the highest health care costs in the country. According to the Bestplaces, the cost of healthcare index in Anchorage is 111.8, slightly lower than the state’s average of 113 and higher than the nationwide average.

Health Care

This city ranked 21st most expensive out of 269 cities and 3rd for healthcare costs behind Juneau and Fairbanks. According to Living cost website, the doctor’s visit in Anchorage costs $145. 

What is the cost of healthcare in Anchorage Alaska?

The healthcare cost in Anchorage Alaska depends on the family size.

Family SizeAverage Cost
Individual + Child$1144
Couple$1431
Family of three$1,859
Family of four$2,287

Why is health insurance so expensive in Anchorage Alaska?

The primary reason of high Health insurance in Anchorage is the small population and isolation from larger markets. Also, there are limited number of health insurance providers, which in turn leads to high cost. 

4. Price of Utilities in Anchorage

The natural gas and electricity bills in the state are more than 33% higher than the national average, leading to the high cost of living in Anchorage

Utilities

. According to the Living cost website, utility bill for one person in Anchorage is about $186, making it an affordable place to live in.  

The cost of utility index in Anchorage is 108.1, way lower than the state’s average of 169.8

What is the average electric bill in Anchorage Alaska?

The average monthly electricity bill in Anchorage is $117, greater than the national average of $107 per month. 

What is the average internet bill in Anchorage Alaska?

According to Livingcost, the average internet bill in Anchorage Alaska is $98.5 for 50Mbps + 1 month unlimited. 

How much is electricity per month in Anchorage?

The average residential electricity rate in Anchorage Alaska is 22.58 cents per kilowatt hour. 

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5. Transportation Cost in Anchorage

Anchorage offers excellent public transport facilities to the residents. The best ways to get around the city are by bus, taxi, or car. According to the Bestplaces, the transportation cost index is 104.6, a bit higher than the state’s average. 

Transportation

Check the transportation price, which directly contributes to the high cost of living in Anchorage Alaska.

MetricsPrice
One-way ticket$1.98
Monthly ticket local transport$56.6
Taxi Ride$16.9
Gas/ Petrol$0.83

How much is public transportation in Anchorage?

Commuters have to pay $2 each time they board or $5 for a day pass. These passes are available at the downtown transit center, and all municipal libraries.

How much is a taxi from Anchorage airport to downtown?

A taxi from Anchorage airport to downtown charges around $17 to $22. The taxicabs are available at both terminals and the ride takes around 15 to 20 minutes. 

How much a bus in Anchorage?

The bus charges are $2 for adults and $1 for youth. Day passes are also available at $5 for adults and $2.5 for youth. 

6. Cost of Tuition and Fees

The tuition cost of undergraduate lower-division courses is $234 per credit for residents and $800 per credit for non-residents.

Tution Cost

The undergraduate upper-division courses are available at $282 per credit (residents) and $848 per credit hour for non-residents. 

How much does it cost to study in Anchorage Alaska?

The residents have to pay an annual fee of $29.604 to study in Anchorage on a full-time basis. This fee is comprised of $7,224 for tuition, $12,2662 for the room, $1,320 for books, and $1,398 for other fees. 

What is the cost of tuition at the University of Alaska Anchorage?

The average tuition fees in the University of Alaska, Anchorage is $8,418 for in-state and $25,398 for out-of-state. This is 3% cheaper than the national average. 

7. Anchorage Tax Rates and Rankings

Taxes play an integral role in evaluating the cost of living in Alaska.

Tax Rates and Rankings

Although the state doesn’t have any sales tax, residents have to pay local sales tax rate, which is 7.50%. The tax system in Alaska ranks 3rd in the State Business Tax Climate Index. 

What is the tax rate in Anchorage Alaska?

The minimum combined sale tax rates in Anchorage, Alaska is 7.5%. 

Is Anchorage Alaska a tax free state?

No. Anchorage is not tax-free and residents have th pay the maximum local sales tax rate of 7.50% and combined tax rate of 1.76%. 

8. Cost of Miscellaneous Things

There are a variety of things to do in Anchorage, Alaska. According to the stats released by Bestplaces, the miscellaneous cost in the city is around 123.1, slightly higher than the state’s average of 119.5. 

Miscellaneous Things

Check the cost of miscellaneous things in Anchorage in the table below. 

MetricsCost
Gym membership$66
Lunch Menu$14.7
Beer in a Pub$6.45
Wine$16.5
Hair Shampoo$4.59
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9. Cost of Livings in Anchorage

In addition to housing, healthcare, and utilities, there are several other things that contributes to the average cost of living in Anchorage.

Living Cost

Learn more about the cost of living things in the table given below. 

MetricsPrice
Rent of 1 bedroom apartment in Downtown$961
Cheap 1 bedroom apartment$740
3bedroom apartment in Downtown$1721
Dinner in a restaurant$65.4
Toilet Paper$4.49
Cinema Ticket$12.5
Brand Sneakers$81.6

Conclusion

That concludes with the cost of living in Anchorage Alaska.  We hope our guide will help you understand all essential aspects of living in Anchorage so you can make an informed choice. Anchorage is packed with lots of cultural activities and natural vistas, making it a beautiful place to live in.

This place is best known for its scenic trails, glaciers, and abundant wildlife. The city is full of art galleries, theaters, live music, and offers plenty of amenities, like shops, coffee houses, restaurants, and bars. 

So, what keeps you thinking now? Check the best places to go in Alaska, pack your bags and move to your new dream house.

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