Cost of Living in Anchorage, AK

Population 289,069 · Alaska · Data vintage 2023

118
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Most of Anchorage's cost indicators track within a reasonable band of national figures, with median household incomes near $98,152 — a more representative starting point for relocation math than the headline-expensive or headline-cheap cities on either tail.

Cost Overview

Housing 123
Rent 111

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Anchorage

The median home value in Anchorage is $375,900 — 23% above the national median of $305,000. Median rent runs $1,453/month, 11% higher than the national median of $1,314/month. The median household income of $98,152/year is 32% higher than the US median of $74,580. The local unemployment rate is 4.6%, below the national average of 4.8%. Alaska charges no state income tax, a meaningful advantage for take-home pay. Overall, Anchorage has a cost of living index of 118 versus the US average of 100, meaning it is 18% more expensive.

🏠 Housing

Median Home Value
$375,900
23% above avg
Zillow Home Value
$405,600
Zillow ZHVI
Median Rent
$1,453/mo
11% above avg
Zillow Rent
$1,660/mo
Zillow ZORI
Price-to-Rent Ratio
21.6x
Favors renting
Property Tax Rate
1.0%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$1,004
1 BR
$1,129
2 BR
$1,413
3 BR
$1,839
4 BR
$2,224
Owner-occupied 63.7%
Renter-occupied 36.3%

💰 Estimated Monthly Budget

Rent median rent
$1,453
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $2,067/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
20.5 min
24% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
9.6%

Commute Mode

Drove alone
71.0%
Carpooled
12.4%
Public transit
1.4%
Walked
2.6%
Bicycle
0.6%
Work from home
9.6%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax (flat) None
Total Sales Tax 1.8%
State rate 0.0%
Avg local rate 1.8%
Property Tax 1.0%

💼 Income & Employment

Median Household Income
$98,152
32% above avg
Per Capita Income
$49,338
Unemployment Rate
4.6%
5% below avg
Poverty Rate
9.3%
Labor Force Participation
69.8%

🎓 Education

Bachelor's degree+ 23.4%
Graduate degree 14.3%

👥 Demographics

Median Age 34.9
Male median age 34.2
Female median age 35.7

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 21 — Good
87.4%
Good air days/yr
71
Max AQI recorded
236
PM2.5 days
0
Ozone days

Frequently Asked Questions

What is the cost of living in Anchorage, AK?

Anchorage has a cost index of 118 (100 = national average). It is 18% above the national average.

What is average rent in Anchorage, AK?

The median gross rent in Anchorage is $1,453 per month based on 2023 Census data.

What is the average home price in Anchorage?

The median home value in Anchorage is $375,900 according to Zillow and Census data.

What is the median income in Anchorage?

The median household income in Anchorage is $98,152 per year (2023 ACS 5-year estimates).

What is the sales tax in Anchorage, AK?

The combined state and local sales tax rate in Anchorage is 1.8%. Alaska has no state income tax.

Is Anchorage, AK affordable?

Anchorage is above average in cost of living, with an index of 118 — about 18% higher than the national average.