4 Most Affordable Places to Live in Alaska

Updated on November 7th, 2023

Reading Time: 3 minutes

“The Last Frontier,” Alaska, is defined by its unparalleled natural beauty. From the Denali National Park, and colorful Northern Lights, to Glacier Bay National Park and outdoor activities like fishing, hiking, and wildlife viewing create a one-of-a-kind state. If you’ve been considering moving to Alaska or are hoping to buy your first home there, you also probably have a budget you’d like to stay under as you look for a place to live. As of August, the median home sale price in Alaska is $382,700. 

If that price is out of your budget, don’t worry. We’ve got options to help you find a home. Redfin has collected a list of the 4 most affordable places to live in Alaska. And they all have a median home sale price under $382,700. From Kodiak to Fairbanks, read on to see what cities you may want to consider moving to.

welcome to alaska sign with mountains in back

#1: Kodiak

Median home price: $170,000 
Average sale price per square foot: $265 
Median household income: $67,391 
Nearest major metro: Anchorage (415 miles)
Kodiak, AK homes for sale
Kodiak, AK apartments for rent

With a median home sale price of $170,000, Kodiak takes the number one spot on our list of affordable places to live in Alaska. It’s the main city on Kodiak Island which has six other small communities. About 5,900 people live in Kodiak and is roughly 415 miles from the nearest metropolitan city, Anchorage. Living in Kodiak, you can hike the South End Trail, explore the Kodiak History Museum and the Alutiiq Museum, take the ferry to Port Lions, and check out Fort Abercrombie State Historic Park.

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#2: Nikiski

Median home price: $285,000 
Average sale price per square foot: $199 
Nearest major metro: Anchorage (170 miles)
Nikiski, AK homes for sale
Nikiski, AK apartments for rent

Coming in as the second most affordable city to live in Alaska is Nikiski, located on the Kenai Peninsula. It’s about 170 miles southwest of Anchorage, the nearest major city. When living in this town of 4,500 people, you can explore the East Foreland Lighthouse Reserve, take in the views of Cook Inlet at Captain Cook State Recreation Area, and picnic at Stormy Lake.

purple flowers, fields, and mountains in alaska

#3: Fairbanks

Median home price: $299,900 
Average sale price per square foot: $143 
Average rent for a 1-bedroom apartment: $1,350 
Median household income: $66,572 
Fairbanks, AK homes for sale
Fairbanks, AK apartments for rent

Next is the city of Fairbanks, which has about 31,500 residents and is the second largest city in Alaska. The median home sale price is $299,900 which is about $80K less than the median home sale price in the state. If you find yourself moving to the third most affordable place in Alaska, explore downtown Fairbanks where you’ll find restaurants and museums like Fairbanks Ice Museum, check out Wedgewood Wildlife Sanctuary, and spend the day at Pioneer Park. 

#4: Kenai

Median home price: $306,000 
Average sale price per square foot: $176 
Nearest major metro: Anchorage (160 miles)
Kenai, AK homes for sale
Kenai, AK apartments for rent

A little more expensive than Fairbanks is the city of Kenai, also located on the Kenai Peninsula just south of Nikiski. About 7,800 people live in Kenai, where there are plenty of unique activities to do. Be sure to take in the scenery at Kenai Beach, hike Meek’s Trail, explore the quaint downtown, or take a trip to the nearby Kenai Fjords National Park.

Methodology: All cities must have over 4,000 residents per the US Census and have a median home sale price under the average median home sale price in Alaska. Median home sale price and median sale price per square foot from the Redfin Data Center during August 2023. Average rental data from Rent.com August 2023. Population and median household income data sourced from the United States Census Bureau.

If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our Editorial Guidelines here.

Alison Bentley

Alison is part of the content marketing team and enjoys writing about housing affordability and home interior design ideas. Her dream home is a cottage-style house with a chef’s kitchen and a cozy room to store and play vinyl records.

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