Cost of Living in Kotzebue, AK

Population 3,046 · Alaska · Data vintage 2023

101
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Small, well-paid, and production-driven — Kotzebue sits at the intersection of rural Alaska and the state's energy economy. Median household incomes near $106,328 reflect that wage base, while housing costs track the smaller-town baseline.

Cost Overview

Housing 87
Rent 123

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

About the Cost of Living in Kotzebue

The median home value in Kotzebue is $264,500 — 13% below the national median of $305,000. Median rent runs $1,610/month, 23% higher than the national median of $1,314/month. The median household income of $106,328/year is 43% higher than the US median of $74,580. The local unemployment rate is 6.0%, 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 29.8°F and lows of 18.3°F, with about 64.2" of annual snowfall. Overall, Kotzebue has a cost of living index of 101 versus the US average of 100, meaning it is 1% more expensive.

🏠 Housing

Median Home Value
$264,500
13% below avg
Median Rent
$1,610/mo
23% above avg
Price-to-Rent Ratio
13.7x
Favors buying
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 43.5%
Renter-occupied 56.5%

💰 Estimated Monthly Budget

Rent median rent
$1,610
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $2,224/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
8.5 min
69% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
5.5%

Commute Mode

Drove alone
21.3%
Carpooled
17.6%
Public transit
2.1%
Walked
42.3%
Bicycle
0.6%
Work from home
5.5%

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
$106,328
43% above avg
Per Capita Income
$42,341
Unemployment Rate
6.0%
25% above avg
Poverty Rate
13.4%
Labor Force Participation
69.4%

🎓 Education

Bachelor's degree+ 12.6%
Graduate degree 7.4%

👥 Demographics

Median Age 31
Male median age 33.5
Female median age 29.7

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
29.8°F
Avg Low
18.3°F
Annual Precip
11.4"
Annual Snowfall
64.2"
-10° 10° 30° 50° 70° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 59924395360574831169
Low °F -8-6-692742514839236-4
Precip" 0.620.850.520.560.440.601.602.131.421.070.820.73
Snow" 9.413.16.44.71.20.00.00.00.65.911.011.9

Frequently Asked Questions

What is the cost of living in Kotzebue, AK?

Kotzebue has a cost index of 101 (100 = national average). It is 1% above the national average.

What is average rent in Kotzebue, AK?

The median gross rent in Kotzebue is $1,610 per month based on 2023 Census data.

What is the average home price in Kotzebue?

The median home value in Kotzebue is $264,500 according to 2023 Census ACS data.

What is the median income in Kotzebue?

The median household income in Kotzebue is $106,328 per year (2023 ACS 5-year estimates).

What is the sales tax in Kotzebue, AK?

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

Is Kotzebue, AK affordable?

Kotzebue is near the national average in terms of cost of living, with an index of 101 (100 = US average).

What is the weather like in Kotzebue?

Kotzebue has average high temperatures of 29.8°F and average lows of 18.3°F. Annual precipitation is 11.4". Average annual snowfall is 64.2". Data from NOAA 1991–2020 Climate Normals.

Kotzebue at a Glance

Population
3,046
Median Income
$106,328
Home Value
$264,500
Median Rent
$1,610/mo
Unemployment
6.0%
Avg High Temp
29.8°F
Sales Tax
1.8%
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