Insights » Cost of Living in Alaska: Cities where Household Expenses are Highest and Lowest in 2024

Cost of Living in Alaska: Cities where Household Expenses are Highest and Lowest in 2024

How does living in the US’s largest and coldest state affect your wallet? doxo breaks down key insights about Alaska’s household expenses, with a close eye to how bills differ in towns and cities across the state. The average household in Alaska, doxo’s data reveals, pays $2,410 in bills per month.

doxo’s data also has infographics for 12 cities and towns across Alaska, breaking down localized bill pay data figures as well. The state-wide rankings for most and least expensive cities provide insight into cost of living in Alaska and how it changes according to location.

The data sheds light on Alaska’s cost of living through other metrics, too. For example, the “percent of household income” data point shows what percentage of household income local residents spend on bills. doxo’s data also indicates how much more or less expensive specific cities are than the national and state average.

Alaska residents pay $2,410 in household bills a month

The average Alaska household pays $2,410 a month for the 10 most common household bills. This figure takes into account the 10 most common household bills, which are: Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet & Phone, Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance.

Alaska residents, overall, pay expensive household bills: the state ranks 12th out of 50 states in terms of average monthly spending. Rhode Island ranks 11th, with annual monthly expenses of $2,469, and Virginia ranks 13th, at $2,406.

Alaska’s household expenses, on average, are 13.3% higher than the national average of $2,126.

Absolute dollar amounts don’t tell the full story, however. The “percentage of household income” metric provides a more proportional look at bill spending in a particular location. Alaskans spend 34% of their income on bills.

Annually, Alaska residents pay $9 billion in household bills. See more data about bill pay in Alaska by clicking on the infographic link below.

Data: doxo INSIGHTS’ bill pay infographic about Alaska

• Average Bill Cost per HH: $2,410 per month
• State Bill Pay Market Size: $9 billion
• doxoINSIGHTS State Rank: 12 out of 50
• Percent of HHI Used for Bills: 34%
• Difference from the National Average: 13.3% higher

Housing bill category drives Alaska’s high monthly bill expenses

The average Alaska household pays $2,410 in the 10 most common household bills per month. Rent and mortgage expenses drive savings, with both being considerably lower than the national average. The average mortgage payment in Alaska is $1,835, and average rent is $1,371, compared to the national average mortgage bill of $1,402 and rent bill of $1,300.

Other than housing-related expenses, auto loans are the most significant of the 10 most common bills for Alaskans. The average auto loan bill in Alaska is $492 a month, which is less than the national average of $496.

Compared to the national average, utilities are a higher expense for residents of Alaska. The average household in the state pays $438 a month for utilities, compared to the national average of $362.

Health Insurance insurance, by contrast, is more affordable in Alaska. While US residents on average spend $114 per month on health insurance, in Alaska they spend just $71.

Note: Health Insurance and Life Insurance expenses do not account for payments made by employers on behalf of employees. These just include out-of-pocket expenses. Also, the state and national bill totals take into account the percentage of households that pay a bill.

Average Alaska Household Bill Spending

Kodiak has the highest cost of living in Alaska for household bills

Residents of Kodiak pay the highest household bills in the state of Alaska, at an average of $2,616 per month. Eagle River comes second in the rankings, with residents paying $2,602 on average per month.

In proportion to household income, the monthly bill basket makes up 24% of monthly bills in Eagle River.

Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.

5 Most Expensive Alaska Cities for Household Bills

*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).

Soldotna has the lowest cost of living in Alaska for household bills

Out of 12 cities and towns, Soldotna is the most affordable place in Alaska, with residents paying $1,989 on average for household bills. Household bills account for 27% of local income in Soldotna.

Homer comes in at the second most affordable town or city in Alaska, with residents paying $2,147 per month on average.

Also on the list of 10 least expensive cities in Alaska are Kenai ($2,173 per month), Palmer ($2,259 per month), and Anchorage ($2,415 per month).

5 Most Affordable Alaska Cities for Household Bills

Some individuals may be deciding whether to move from a more expensive city to a less expensive one, and doxoINSIGHTS can be a valuable resource for consumers seeking to make key decisions like this, allowing them to compare Alaska’s household expenses against average bills in different cities and states across the country. They can also use doxoINSIGHTS’ regional bill comparison database to compare average costs for nearly 5,000 towns and cities across the country.