Alaska, renowned for its breathtaking landscapes and unique lifestyle, comes with a price tag that might surprise many. Four Alaskan cities have made it to the top 20 most expensive cities in the entire United States. Let’s take a closer look at these cities and understand what makes them so costly.
Anchorage, being the least expensive of the most expensive Alaskan cities, is still 24.6% above the national cost of living index. Groceries and housing costs are about 25% and 35% higher, respectively, while transportation fares relatively better, just 5% above the average. However, healthcare expenses shoot up, being almost 49% higher than the national index.
Kodiak, situated on an island, faces the inevitable challenge of higher grocery prices, soaring 44% above the average. Surprisingly, housing costs are only 16% higher, while utilities prove to be the major expense at 32% above the average. Transportation costs fare reasonably at 10%, but healthcare expenses spike significantly, reaching 62% above the national index.
Fairbanks experiences a moderate overall cost of living, being 26.6% higher than the national index. Groceries and housing remain manageable at 20% and 10% above the average, respectively. However, the extreme climate results in utility costs soaring, being 127% above the average. Transportation fares moderately at 13%, while healthcare costs are 57% above the national index.
Topping the list of expensive cities is Juneau, the capital of Alaska. Its isolated location accessible only by plane or boat drives up costs significantly. Groceries are 40% more expensive, while housing is 44% higher than the average. Utilities, surprisingly, reach 36% above the average. Transportation is moderately priced at 17% above the national index, but healthcare costs rise to a hefty 50% above the average.
Interestingly, some Alaskans have found a cost-saving strategy by living in the Matanuska-Susitna Valley (Matsu) and commuting to Anchorage. This option requires only 0.94 incomes to afford a house and is currently the most affordable since 1992, owing to low interest rates.
Understanding the cost of living index allows individuals to gauge how affordable an area is compared to other cities in the country. While Alaska undoubtedly offers unique experiences, those considering a move should carefully consider the financial implications of living in these pricey cities.