Cost of Living in Homer, AK

Population 5,750 · Alaska · Data vintage 2023

109
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Homer's economy is tied closely to the extraction industries that dominate much of Alaska. Median household incomes of $73,723 run at or above national figures despite the small population — a direct signal of the wage premium that mining, oil, and gas employers pay. Home values of $364,000 keep the overall cost equation favorable. Unemployment has stayed elevated relative to the national figure — 8.8% as of the most recent ACS release — which shows up in household-income and poverty figures as well.

Geographically, Homer lies roughly 130 miles southwest of the nearest major metro, Anchorage. Housing prices track closely with Anchorage's $376,000 median.

Cost Overview

Housing 119
Rent 94

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

About the Cost of Living in Homer

The median home value in Homer is $363,700 — 19% above the national median of $305,000. Median rent runs $1,230/month, 6% lower than the national median of $1,314/month. The median household income of $73,723/year is 1% lower than the US median of $74,580. The local unemployment rate is 8.8%, above the national average of 4.8%. Alaska charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 47.0°F and lows of 33.1°F. Overall, Homer has a cost of living index of 109 versus the US average of 100, meaning it is 9% more expensive.

🏠 Housing

Median Home Value
$363,700
19% above avg
Zillow Home Value
$230,014
Zillow ZHVI
Median Rent
$1,230/mo
6% below avg
Price-to-Rent Ratio
24.6x
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 68.5%
Renter-occupied 31.6%

💰 Estimated Monthly Budget

Rent median rent
$1,230
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,844/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
13.4 min
50% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
11.0%

Commute Mode

Drove alone
64.1%
Carpooled
8.2%
Public transit
0.2%
Walked
11.6%
Bicycle
1.3%
Work from home
11.0%

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
$73,723
1% below avg
Per Capita Income
$44,386
Unemployment Rate
8.8%
82% above avg
Poverty Rate
11.8%
Labor Force Participation
60.3%

🎓 Education

Bachelor's degree+ 24.6%
Graduate degree 16.0%

👥 Demographics

Median Age 40
Male median age 38.6
Female median age 44.1

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
47.0°F
Avg Low
33.1°F
Annual Precip
23.9"
10° 25° 40° 55° 70° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 323537465459636357473834
Low °F 192223313845494842332521
Precip" 2.151.821.321.150.780.871.452.313.282.612.873.27

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 10 — Good
100%
Good air days/yr
29
Max AQI recorded
119
PM2.5 days
0
Ozone days

Frequently Asked Questions

What is the cost of living in Homer, AK?

Homer has a cost index of 109 (100 = national average). It is 9% above the national average.

What is average rent in Homer, AK?

The median gross rent in Homer is $1,230 per month based on 2023 Census data.

What is the average home price in Homer?

The median home value in Homer is $363,700 according to Zillow and Census data.

What is the median income in Homer?

The median household income in Homer is $73,723 per year (2023 ACS 5-year estimates).

What is the sales tax in Homer, AK?

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

Is Homer, AK affordable?

Homer is near the national average in terms of cost of living, with an index of 109 (100 = US average).

What is the weather like in Homer?

Homer has average high temperatures of 47.0°F and average lows of 33.1°F. Annual precipitation is 23.9". Data from NOAA 1991–2020 Climate Normals.

Homer at a Glance

Population
5,750
Median Income
$73,723
Home Value
$363,700
Median Rent
$1,230/mo
Unemployment
8.8%
Avg High Temp
47.0°F
Sales Tax
1.8%
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