| Index | Anchorage | Alaska | National |
| Cost of living | 132 | 122 | 100 |
| Groceries | 123 | 119 | 100 |
| Health care | 112 | 110 | 100 |
| Housing | 165 | 137 | 100 |
| Transportation | 114 | 113 | 100 |
| Utilities | 125 | 124 | 100 |
| Lifestyle & Entertainment | 122 | 117 | 100 |
| Household Items | 112 | 110 | 100 |
| Education & Childcare | 116 | 114 | 100 |
Knowing the cost of living in Anchorage allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Anchorage stands at 132, marking it 32% higher than the national average.
If you're in pursuit of an economical living environment, Anchorage may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Anchorage falls within this bracket.
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 64.6% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.
Recurring household expenses such as cleaning supplies, laundry detergent, toiletries, and kitchen basics are a steady part of monthly spending and make up 8% of the cost of living index. In Anchorage, these everyday items will cost you 11.5% more than average, making it a slightly more expensive place to call home.
The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in Anchorage is even less favorable, with grocery prices here being 23.2% higher than the national average.
The real experts on a city are its residents. That's why we reached out to 17 locals to get their views on the cost of living in Anchorage. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 24% found it budget-friendly with decreasing prices, while 76% said it's simply not affordable as prices have continued to rise.
Is Anchorage affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Anchorage, for instance, where the median home price falls 75.7% higher than the national average, and monthly rent rates are 38.6% higher than usual. Additionally, median income levels contribute to the equation, with Anchorage flaunting a median household income of $124,755, 53.4% higher than the national norm.
Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Anchorage, the healthcare costs are 12% higher than the national average.
Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Anchorage, the groceries index is 23.2% higher than the national average.
Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Anchorage, the prevailing sales tax rate starts at 0%, and income tax rates kick off at 0%.
The Anchorage cost of living estimates above use a normalized U.S. average of 100 as the baseline for comparison. Housing values incorporate local home price and rental information from the U.S. Census, while all other estimates are AI-assisted and modeled using expected everyday expenses, local market trends, climate, and transportation-related cost pressures. The results are intended for practical city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $166,258 | $13,855 | $3,879 | $4,988 |
| Renters | $86,631 | $7,219 | $2,021 | $2,599 |
| State | General Sales Tax | With Max Surtax |
| Alaska | 0% | 7% |
| State | Income Tax (Low) | Income Tax (High) |
| Alaska | 0% | 0% |
| City | Population | Cost of Living Index | National Avg. |
| Point MacKenzie, AK | 1,372 | 123 | 23.4% |
| Anchorage, AK | 302,697 | 132 | 32.0% |
| City | Population | Cost of Living Index | National Avg. |
| Greensboro, NC | 304,481 | 98 | 1.8% |
| Plano, TX | 297,929 | 122 | 21.8% |
| Cincinnati, OH | 309,429 | 92 | 8.1% |
| Pittsburgh, PA | 310,293 | 96 | 3.8% |
| Orlando, FL | 294,679 | 116 | 16.2% |
| Anchorage, AK | 302,697 | 132 | 32.0% |
Here are the best places to live in Alaska
Check out the 10 safest cities in Alaska
See the best places to live in Anchorage
These are the largest cities in Alaska