F
31%
Overall NAT. AVG.
17%
Goods & Services NAT. AVG.
63%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Anchorage Alaska National
Cost of living131129100
Goods & Services117120100
Groceries124124100
Health care140148100
Housing163135100
Transportation112115100
Utilities112158100

An Overview of Cost of Living in Anchorage, AK

Getting a feel for the cost of living in Anchorage is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Anchorage is 131, which is 31% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Anchorage is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Anchorage falls into this category, which may not align with your goal of finding a budget-friendly living environment.

When it comes to the cost of living in Anchorage, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 62.7% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Recurring goods and services expenses like haircuts, toothpaste, gym memberships and movie nights are a big part of your spending and make up 33% of the cost of living index. In Anchorage, these items will cost you 16.8% more than what most folks pay, making it a bit more expensive to live here.

Groceries are getting more expensive by the day and the cost of groceries makes up 13% of the overall cost of living index. In the past two years, prices have shot up by over 10%! Unfortunately, in Anchorage, it's the same story – grocery costs are 23.8% higher than what people pay across the country.

What Do Locals Say About the Cost of Living in Anchorage?

Nobody knows their city better than the people who actually live there. So, we asked 15 local residents how they would rate the cost of living in Anchorage and this is how they responded. 27% of people said that the cost of living was affordable, with prices decreasing, while 73% of people said that the cost of living was very expensive and prices continue to rise.

Is Anchorage Affordable?

Is Anchorage an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Anchorage is 73.3% higher than the national average, while the average monthly rent prices are 38% higher than average. The affordability of any location can also be influenced by median income levels. Anchorage has a median household income of $84,813, which is 53.3% higher than the national average.

What Factors can Influence the Cost of Living in Anchorage?

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Anchorage, healthcare costs are 39.8% higher than the national average.

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Where is the Data From?

The Anchorage cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Anchorage is 2% higher than the Alaska average
  • The cost of living in Anchorage is 31% higher than the national average
  • Anchorage housing is 63% higher than the national average
  • Alaska general sales tax is 100% lower than the national average
  • Alaska state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Anchorage

See all the best places to live around Anchorage

Compare Anchorage, AK Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$109,645$9,137$2,558$3,290
      Renters$57,729$4,811$1,347$1,732
      A good way to judge both the affordability of the housing and the cost of living in Anchorage is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Anchorage has a median income of about $109,645 for people who own homes. Based on that number, a maximum of $2,558 should be spent on expenses related to housing. Renters have a slightly different median income, which is $57,729. Based on this average, renters should spend no more than $1,347 on all rental costs if they want to maintain a non-impoverished standard of living.

      Alaska Sales Tax

      State General Sales Tax With Max Surtax
      Alaska 0% 7%

      Alaska Income Tax

      State Income Tax (Low) Income Tax (High)
      Alaska 0% 0%

      Goods & Services

      Item Anchorage National avg. Difference
      Haircut $28.21$24.2616.3%
      Beauty Salon $47.27$45.563.7%
      Toothpaste $3.81$3.702.9%
      Shampoo $1.31$1.282.0%
      Movie $13.19$12.138.7%
      Bowling $18.08$18.000.5%

      Groceries

      Item Anchorage National avg. Difference
      Ground Beef $6.62$5.8413.3%
      Fried Chicken $2.45$1.5755.6%
      Milk $5.09$4.679.0%
      Potatoes $5.98$4.9321.2%
      Pizza $12.76$12.095.5%
      Beer $13.48$10.4129.5%

      Health Care

      Item Anchorage National avg. Difference
      Optometrist $247.07$125.6896.6%
      Doctor $215.28$135.7858.6%
      Dentist $153.23$113.2935.3%
      Ibuprofen $12.38$10.6516.2%
      Lipitor $522.08$468.6011.4%

      Housing

      Item Anchorage National avg. Difference
      Home Price $320,100.00$184,700.0073.3%
      Avg. Mortgage Payment $3,534.94$2,346.6950.6%
      Apartment Rent $1,310.00$949.0038.0%

      Transportation

      Item Anchorage National avg. Difference
      Gasoline $3.93$3.4613.5%
      Tire Balancing $65.07$59.928.6%

      Utilities

      Item Anchorage National avg. Difference
      All Electricity $232.09$193.9919.6%
      Phone $189.01$192.251.7%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Point MacKenzie, AK1,32312222.2%
      Anchorage, AK292,09013131.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Gatineau, QC293,695n/a 
      Greensboro, NC294,395937.4%
      Plano, TX288,87013030.3%
      Lincoln, NE286,388981.8%
      Orlando, FL284,8171109.9%
      Anchorage, AK292,09013131.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.