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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Anchorage might not be the first city that comes to mind when you think of affordability in Alaska, but the numbers don't lie. With a median income of $98,152 — 22% above the national median — paired with a cost index of just 97, it delivers purchasing power that most cities can't match. We analyzed…
#1 Ranked: Anchorage — cost index 97, rent $1,660/mo, income $98,152
1 of 1 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Anchorage might not be the first city that comes to mind when you think of affordability in Alaska, but the numbers don't lie. With a median income of $98,152 — 22% above the national median — paired with a cost index of just 97, it delivers purchasing power that most cities can't match. We analyzed 1 cities using 2026 data from the Census Bureau, Zillow, and BLS to assemble this ranking.
The food & groceries sub-index is derived from overall cost of living with regional BLS price adjustments. A score of 99 (the top-10 average here) means food & groceries costs are about 1% below the national median. Anchorage leads at 99. Note: a low food & groceries index doesn't guarantee a low overall cost — check the full cost breakdown table below.
Anchorage earns its position at #1 through a combination that's hard to replicate. The 97 cost index sits 14 points below the national baseline, and the $98,152 median income means purchasing power here is genuinely above average. Homes list at $405,601 — $61,769 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 97, while Healthcare trails at 99.
In plain English: Bottom line: Anchorage leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
286,075 residents · Alaska
Here's Anchorage by the numbers — and there's a lot to like (and a little to watch). Cost index: 97. Rent: $1,660/month. Income: $98,152/year. Home price: $405,601. Population: 286,075. The strongest category is Housing at 97; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $2,820 per year vs. the national median. That gap is hard to ignore.
Cities are ranked by their food & groceries cost sub-index within Alaska. Each sub-index is derived from the overall cost of living with regional adjustment factors. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Anchorage ranks #1 in Alaska for this analysis with a cost index of 97 and median income of $98,152.
Anchorage, AK has the lowest food & groceries index at 99, compared to the national average of 100.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Anchorage is $1,660/month as of 2026, based on Zillow's Observed Rent Index. This is $235 below the national median of $1,895/month.
The median home price in Anchorage is $405,601, which is 4.1× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Alaska has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 1.82%, and the effective property tax rate is 1.04%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.