Alaska attracts Americans from all over. And there are good reasons why: affordable cost of living, cheaper rents, and quality education. You can’t go wrong with the Last Frontier State!
Although property prices have risen in recent years, the average home value in the top 10 cheapest cities is still only around $300,000. Kotzebue’s cost of living is 1.6% lower than the state average, and Fairbanks is 10.7% more affordable than the rest of the Country.
But that’s not all! Retirees can enjoy Kenai’s friendly community and peaceful environment, with homes averaging a nominal $313K. Meanwhile, Bethel offers a booming job market in education, healthcare, and technology, with median home prices at just $364,674.
Cheapest Places to Live in Alaska in 2024
Here’s our ranking of the most affordable places to live in Alaska. We’ve considered the average household income, median list price, median house rent, and the population of the cities.
| City | Median Home Value | Cost of Living Compared to State Average | Median Household Income | Population |
|---|---|---|---|---|
| 1. Kotzebue | $225,000 | 1.6% lower ⬇️ | $101,071 | 2,979 |
| 2. Fairbanks | $296,511 | 10.7% lower ⬇️ | $69,914 | 31,856 |
| 3. Valdez | $320,738 | 0.0% lower ⬇️ | $89,255 | 3,805 |
| 4. Kenai | $313,308 | 12.8% lower ⬇️ | $77,335 | 7,746 |
| 5.North Pole | $320,220 | 10.7% lower ⬇️ | $82,638 | 2,427 |
| 6. Bethel | $490,000 | 14.5% higher ⬆️ | $100,852 | 6,292 |
| 7. Seward | $361,995 | 12.8% lower ⬇️ | $89,655 | 2,735 |
| 8. Tanaina | $373,567 | 4.9% lower ⬇️ | $86,418 | 9,682 |
| 9. Kalifornsky | $342,496 | 12.8% lower ⬇️ | $90,703 | 8,380 |
| 10. Badger | $315,000 | 10.7% lower ⬇️ | $87,169 | 19,182 |
10 Cheapest Places to Live in Alaska
Here’s our list of 10 cities that offer affordable living options in the Last Frontier State:
#1 Kotzebue
- Median home value of Kotzebue is $225,000.
- Cost of living in Kotzebue is 1.6% cheaper than the state average.
Kotzebue is an affordable place to live in Alaska. Its transportation costs are 26.5% lower than the national average. Beyond its breathtaking scenery, the city employs several people in the construction, and healthcare sectors. The presence of major employers like NANA has significantly boosted the local economy.
» Kotzebue Homes for Sale: Find your dream home in the cheapest city to live in Alaska.
#2 Fairbanks
- Median house rent is $1,800 | Rental prices range between $725 and $3,300.
- Median home value of Fairbanks is $296,511.
- Cost of living in Fairbanks is 10.7% cheaper than the state average.
Fairbanks is one of the most affordable places to live in Alaska with housing costs 17.1% lower than nationwide. Known for extreme winter temperatures, it is a prime location to experience the Northern Lights. It is also home to the University of Alaska Fairbanks, which offers a vibrant academic and research community.
» Fairbanks Homes for Sale: Browse thousands of property listings in one of the major cities in Alaska.
#3 Valdez
- Median home value of Valdez is $320,738.
- Cost of living in Valdez is at par with state average.
Valdez offers an exceptional quality of life at an affordable cost. Housing prices are 3.1% below the national average. The Chugach Mountains, and surrounding glaciers, make it a paradise for outdoor enthusiasts. The city also offers several employment opportunities with the presence of big firms like Intertek and Best Western.
» Valdez Homes for Sale: Explore your homes in Valdez.
#4 Kenai
- Median house rent is $1,830 | Rental prices range between $915 and $2,530.
- Median home value of Kenai is $313,308.
- Cost of living in Kenai is 12.8% cheaper than the state average.
With transportation costs 21.9% lower than the US average, Kenai is one of the most inexpensive places to live in Alaska. The Kenai River is a recreational spot popular for salmon fishing amongst outdoor enthusiasts. Its Russian heritage and history of fur trading also lend it immense cultural and historical significance.
» Kenai Homes for Sale: Find your dream home in one of the cheapest cities in AK.
#5 North Pole
- Median house rent is $1,938 | Rental prices range between $900 and $3,500.
- Median home value of North Pole is $320,220.
- Cost of living in North Pole is 10.7% cheaper than the state average.
North Pole’s cost of housing is 8.9% lower than the national average; and transport 8.5%. The city is renowned for its Christmas spirit, and small businesses like restaurants and retail shops are common. The city’s proximity to Fairbanks and the International Airport also contribute to its economy.
» North Pole Homes for sale: Browse properties in one of the most affordable places to live in Alaska.
#6 Bethel
- Median house rent is $2,000.
- Median home value of Bethel is $490,000.
- Cost of living in Bethel is 14.5% higher than the state average.
With an average household income of $100,852, you can comfortably live in Bethel. In addition, the transportation costs are 29.1% lower than the national average, making it ideal for you to buy a house. Moreover, as a regional center, Bethel provides various job opportunities in government administration, education, healthcare, and law enforcement sectors.
» Bethel Homes for Sale: Find a home in one of the cheapest places to live in Alaska.
#7 Seward
- Median house rent is $1,110 | Rental prices range between $963 and $1,166.
- Median home value of Seward is $361,995.
- Cost of living in Seward is 12.8% cheaper than the state average.
Seward is one of the cheapest cities to live in Alaska. The annual food expenditure for an individual totals around $3,405, which makes it highly budget-friendly. As for employment, Seward is a fishing hub, with numerous commercial fishing companies operating in the area.
» Seward Homes for Sale: Find yourself cheap houses in Alaska.
#8 Tanaina
- Median home value of Tanaina is $373,567.
- Cost of living in Tanaina is 4.9% cheaper than the Alaska average.
Tanaina offers more affordable housing compared to larger Alaskan cities, with costs 11.6% below the national average. You could rent a one-bedroom unit for $1,265 monthly, which is cheaper than nationwide. This makes it an excellent place to live on a budget.
» Tanaina Homes for Sale: Find cheap houses for sale in Alaska.
#9 Kalifornsky
- Median home value of Kalifornsky is $342,496.
- Cost of living in Kalifornsky is 12.8% cheaper than the state average.
Kalifornsky is one of the more affordable cities in AK with housing costs 17% below the national standard. Transportation costs are 22.2% lower as well. Beyond affordability, Kalifornsky boasts a strong local economy. It is driven by key employers like Nikiski Fire Service Area and Northern Sales Company Inc.
» Kalifornsky Homes for Sale: Browse affordable and cheap homes in Alaska State.
#10 Badger
- Median home value of Badger is $315,000.
- Cost of living in Badger is 10.7% cheaper than the state average.
- 1 Popular Zip in Badger, AK: 99705
An annual income of $87,169 can comfortably sustain a family of four in Badger. Housing and transportation costs are 4.4% and 5.3% lower respectively. It is in a remote location, which can lead to grocery prices being higher than larger cities. However, hunting, fishing and locally sourced foods help offset these costs.
» Badger Homes for Sale: Find homes in one of the cheapest cities to live in Alaska.
So, Where Is the Cheapest Place to Live in Alaska?
If you want to move to Alaska, you will find cheap houses for sale in Alaska under 150K in cities like Fairbanks, North Pole, and Kenai. They also offer stable job opportunities, and a low cost of living which is more affordable than other Alaska cities.
Cities like Bethel and Tanaina are slightly expensive but provide better job opportunities. You must research the home prices and living costs. Also, getting a mortgage pre-approval helps you stand out in the competition before buying a house in Alaska.
Get a Home Loan in Alaska🏡
Select Your Loan Type
-
New Home Purchase
-
Mortgage Refinance
-
Cash-out Refinance
📢 Check Out Budget-Friendly Homes for Sale in Alaska
Here are a few options of cheap houses for sale in AK.
Try Alaska’s #1 Mortgage Calculator to see how much house you can afford. Get an instant amortization schedule and a detailed cost breakdown for free💲.
Find an Affordable House With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of tiny homes for sale in Alaska on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in Alaska’s competitive housing market.
Research Methodology
To rank the top cities in Alaska, we analyzed the northern, central, and southern regions, evaluating them based on specific criteria. Below is a breakdown of the factors used and the sources of information that informed our rankings.
- Population: World Population Review [1]
- Median Home Price: Zillow [2] Redfin
- Median Rent: Zillow [3]
- Cost of Living: Rent Cafe [4]
Frequently Asked Questions
What is the least expensive place to live in Alaska?
The cheapest place to live in Alaska is Kotzebue. It offers one of the most affordable cost of living, which is 1.6% lower than the state average.
» 10 Cheapest Places to Live in Alaska: Find out the other cheapest places to live in Alaska.
Is it expensive to live in Alaska?
Yes, it is somewhat expensive with a median home value of $364,674. If you're looking for cities with affordable housing, check out our list of the cheapest places to live in America.
Where is the best place to live in Alaska?
The best place to live in Alaska is Anchorage, followed by Fairbanks, Juneau, Wasilla, Sitka, Badger, and Homer.
Which Alaska city has the lowest cost of living?
Kenai has the lowest cost of living, which is 12.8% lower than the state average, respectively.
