Alaskans are lucky. They have amazing fishing communities, such as King Cove, the home of Santa Claus at the North Pole, and incredibly inexpensive locations to call home. Whether it’s on the slopes of Alaska’s Denali or in a classic bay town like Sand Point, the fifty-first state to become a part of the United States has a place to live that won’t break the bank and can accommodate any budget.
However, just because these locations in Alaska are available at more reasonable prices does not imply that they are lacking in charm. In Alaska, several of the cities that are ranked highest for their low cost of living are also among the state’s safest.
Here is a list of the top cheapest cities to live in Alaska.
1. King Cove
King Cove, a tiny settlement on the eastern coast of the Alaskan Peninsula, tops our list of the most cheap locations to live in Alaska. King Cove is located in the southeast corner of the state.
The median price of a property in King Cove is $108,300, making it the location in Alaska where you’ll discover homes for sale that are the third least expensive overall. When this information is combined with the annual median income of $71,875 that the city of King Cove has, the city’s ratio of property prices to income is the third best in the state.
In addition to this, King Cove has the lowest median rent in all of Alaska at only $825 per month, making it the most affordable area to rent in the state. If you have an interest in animals, keep an eye out for puffins, brown bears, and seals while you are on the boat to Cold Bay.
Valdez is our pick for the second most affordable location to call home in Alaska in 2022. Despite its history as a town built on the gold rush, the economy of modern-day Valdez is predominately focused on the delivery of oil.
On our overall SnackAbility rating, which places a focus on safe streets, decent schools, and healthy markets for both housing and jobs, we ranked Valdez an 8 out of 10, giving it an overall score of 8/10. Perhaps this is why we considered it to be one of the most desirable locations to make your home in all of Alaska.
Residents of Valdez have the highest-paying jobs on our list, with a typical annual salary of $93,281 for those who call the city home. Because of this, Valdez has the second-greatest rent-to-income ratio in the state, despite having a median rent that is slightly higher than the state average of $1,136 per month.
The settlement of Kotlik is rather small and is located on the northwest coast of Alaska. Along the lower Yukon River, there is a settlement that resembles a port town. When we take a look at various economic indicators, we find that the median income in the city is $47,844.
The current rate of unemployment comes in at 16.18%. This salary may go a relatively long way, especially when compared to Alaskan norms, given that the typical property value in the state is $70,700. The cost of living in Kotlik is 28% less than the average for the state, and it is 3% less than the average for the entire country.
Check out the best places to live in Alaska.
4. Sand Point
Sand Point, which can be found on Popof Island just off the coast of the Alaskan Peninsula, comes in at number four on the list of the least costly places to call home in all of Alaska. Around half of the people living at Sand Point belong to the Unangan culture, which is honored and explored in more depth during the yearly Culture Camp.
The typical price of a home in Sand Point is $181,900, which places it eighth among all the cities in the state in terms of affordability. Even more crucially, residents of Sand Point do not need to fork out fifty percent of their monthly salary in order to get a nice place to live in the city because it has the fifth-best property price to income ratio in the state of Alaska.
Houston, which can be found in the southern region of Alaska, is only a short distance away from Wasilla and is situated directly over the Knik Arm from Anchorage, the most populous city in the state.
Due to the community’s advantageous location on Highway 3, it serves as something of a gateway here between major population centers in the southern part of the state and the central portion of the state. The price of a home in Houston is now estimated to be $178,000 on average.
This is the fifth most cheap figure that can be found in the state of Alaska. Rents are also quite malleable in this regard. The region has a median rent that comes in at $708 per month. The typical annual salary for workers in Houston is $53,594, according to recent data. Current estimates place the unemployment rate at 16.44%.
6. Delta Junction
Over the course of its long and eventful history, Delta Junction has been known by a variety of names, including that of a gold rush town, Bison City, a military outpost, and an agricultural village. Today, it is recognized as the official terminus of the magnificent Alaska Highway and is ranked as the sixth most cheap location in all of Alaska.
The average price of a home in Delta Junction is around $216,800, while the average monthly rent is approximately $860. With a median income of $64,792, Delta Junction comfortably ranks in the top ten cities throughout the state for housing to income ratios, both for purchasers and renters. This is true for both property types.
Take a look at our of the biggest cities in Alaska.
7. North Pole
It seems that Santa Claus is fairly good at budgeting his money, since it turns out that the North Pole is one of the sites in Alaska where living expenses are the lowest. You can see that there is a strong sense of community here since volunteers in North Pole labor to answer to the approximately 400,000 letters addressed to Santa Claus that are received each year.
And of course, when Christmas is getting close, the city really starts to come to life. In terms of affordability, people in the North Pole spend the sixth-lowest proportion of their income on housing across the state. Because it is one of the greatest towns in Alaska for singles, the cost of dating has never been lower than it is in the North Pole.
8. Mountain Village
Mountain Village, which is located in Alaska, is yet another minuscule town. It is projected to be the ninth most inexpensive city in Alaska in 2022. Unfortunately, the town is consistently ranked as one of the poorest in the country, which is a contributing factor to the relatively low cost of living there.
The typical price of a home in Mountain Village is $23,600, while the rent there is $610 per month, which is the lowest in all of Alaska. The unemployment rate in this area is 21.85%, while the median income here is $31,339 per year.
Seward, one of the most popular starting sites for treks to the Kenai Peninsula in Alaska, is the next city on our list of super-affordable places to visit in Alaska.
There are literally simply too many opportunities for outdoor recreation in the surrounding area for us to include them all here, but a cruise around the Kenai Fjords is without a doubt the most iconic thing to do in Seward.
It should come as no miracle that we chose Seward as the finest city in Alaska for families to live in given the abundance of clean entertainment alternatives that are readily available there. The median cost of houses is $251,700, and the city is still able to compete favorably in terms of relative cost thanks to a typical income of $74,110.
Emmonak, which is only 10 miles away from the Bering Sea, is projected to be the tenth least expensive city in all of Alaska in 2022. The majority of the town’s residents are Yupik Alaska Natives, many of whom are employed in various aspects of the commercial fishing and processing industries.
The town’s overall cost of living is 20% cheaper than the average cost of living in Alaska, with the majority of the difference being driven by the comparatively low cost of housing. The typical price of a property in Alaska is $111,400, while the state’s rent is the sixth lowest at $855 per month.
The cost of living in Anchorage, Alaska’s capital city, is the lowest of any major city in the whole state. Jobs in the state and federal governments provide a significant contribution to Juneau’s economy.
In addition to this, Juneau capitalizes on its position as a port city on the Panhandle to increase the amount of revenue it receives from fishing as well as tourism.
The city is a frequent stop for cruise ships. The typical price of a property in this area is quite high at $318,000, but the median income for a household in this area is $84,750, thus residents’ incomes are also larger.
Anchorage is home to more than forty percent of all of Alaska’s residents, making it the state’s most populous city. People prefer to make their home in this bustling metropolis because it offers excellent opportunities in the fields of trade, transportation, and tourism. The magnitude of this place contributes significantly to the robustness of the economy here.
Anchorage is home to many firms and corporate headquarters, including those that specialize in the exploitation of local resources. The Port of Anchorage also handles the vast majority of the products that are brought into the state. The typical household income in Anchorage is a solid $78,121, which compares favorably to the median property price of $286,600 for inhabitants of the city.
The city proper of Fairbanks, also known as the Golden Heart City, is located inside an area that is referred to as the North Star Borough. This area functions similarly to counties in other states. Think of it as a very large county, though, because it covers 7,444 square miles of territory.
A little over 100 miles away from Denali National Park and the tallest mountain peak in North America lies the city of Fairbanks, which serves as the final major metropolitan stop along the route to these destinations. Due to the fact that it is so conveniently located, this city is often referred to as the “gateway city” to the wild interior and Arctic Circle regions of Alaska.
14. Badger (CDP)
Other communities, such as Clear Creek Park and Dennis Manor, can be found inside the boundaries of the Badger neighborhood. The local public school system is likewise well respected in this region.
The median household income is $78,157, while the typical home price is $209,600, making the city the most affordable in terms of house prices. Between Badger and “the home rule city” of Fairbanks is where you’ll find Ladd Army Airfield at Fort Wainwright.
As is typical for Alaska, the cost of living in Kenai is significantly higher than the average for the rest of the country. It is 18% more than the cost of living on average in the United States, but it is still lower than the cost of living in Alaska, which is 28% higher than the cost of living on average in the United States.
Housing in Kenai may be surprisingly reasonable for those on a budget, with prices that are only 8% over the national average. This is a significant improvement above the average for the state, which is 35% higher than the average for the nation. The average monthly rent in Kenai is only $900, making it one of the few areas in Alaska where it is less expensive than the national average.
Have we spoken about the kickback from Alaska? The Alaska Permanent Fund ensures that every resident of Alaska receives their fair share of the cash generated by the state’s oil industry.