Moving To Alaska: What To Consider And How To Prepare

Though Alaska may not be the most popular state to relocate to — it’s among the least-populated states in the U.S. — it still offers many advantages for the people who live there.

Known as the “last frontier,” Alaska offers its residents plenty of job opportunities, low taxes, and even financial incentives to live there. But if you’re considering moving to Alaska, there are also some downsides to living in this state.

What Is Living In Alaska Like?

Alaska is known for its remoteness. Not only is it far from the rest of the United States, but much of the state is also made up of remote locations. But the endless miles of unsettled land is part of what makes Alaska so attractive. If you’re an avid outdoor adventurer, you’ll surely appreciate the state’s nature and wildlife.

For these reasons, Alaska has long been a top tourist destination and one of the best places to experience winter. But the other amenities the state has to offer can also make it an excellent place to call home.

Alaska offers many of the same conveniences you would want out of any city. Anchorage, the state’s largest city, offers plenty in the way of job opportunities and city living. Even smaller cities like Fairbanks and Juneau can give you all the amenities you’d want in a city. At the same time, you’re just miles away from outdoor recreation.

What To Consider Before Moving To Alaska

Before you plan your move to Alaska, it’s important to be aware of some of the downsides faced by residents of the 49th state.

High Cost Of Living

Unfortunately, Alaska is one of the highest cost-of-living states in the country. You might be surprised to learn this since Alaska doesn’t share many characteristics with the other most expensive places in the U.S. However, the state’s remoteness creates some financial challenges.

According to the Bureau of Economic Analysis, the per-capita personal consumption expenditure in Alaska is about $48,739 compared to $42,635 for the nation overall. Only six states — Connecticut, Massachusetts, New Hampshire, Vermont, Washington, D.C., and New York — are more expensive.

Below are a few factors to consider when it comes to Alaska’s cost of living:

• Housing: The cost of housing in Alaska is moderate. According to data from the U.S. Census Bureau, the median cost of rent in the state is slightly higher than the U.S. On the other hand, it’s a bit more affordable to own a home.
• Health care: Unfortunately, health care costs are quite expensive in Alaska. According to data from the Centers for Medicare & Medicare Services, Alaska has the highest per-capita healthcare costs of any state. It has also seen the highest growth in healthcare costs in recent decades. The average per-person healthcare cost is $13,642 per year.
• Groceries: Alaska is known for its high grocery prices. One of the reasons food tends to be so expensive is that the state is so remote, meaning it’s costly to transport many goods there. According to the Bureau of Economic Analysis, consumers in Alaska spend roughly $4,042 per year on food, while the average American spends about $3,480.
• Fuel: Fuel is the one area where Alaska residents seem to have an advantage over the rest of the country. The average annual spending on gasoline in Alaska is about $603 per person, compared to $749 per person for the nation overall.

Competitive Real Estate Market

If you’re considering buying a home in Alaska, it’s important to understand what the real estate market is like. As we mentioned, the price of homes in Alaska is just slightly below the national average, as is its growth. Housing prices in the state have increased 10.4% over the past 12 months compared to 10.8% for the U.S. overall.

Unfortunately, that doesn’t make it easy to buy a home. Low inventory has left many people unable to buy a home when they want to.

It’s also worth noting that property taxes are higher than average in Alaska. The state ranks 33rd for the lowest property taxes, partially because it needs to offset its lack of state income tax. On average, you’ll pay 1.19% in property taxes, which comes to about $3,231 for the typical homeowner.

Harsh Climate

It probably won’t come as a surprise to you that Alaska can have a harsh climate. Average temperatures only get as high as 65 degrees in the summer months. Meanwhile, temperatures can easily get below zero in the winter.

And it’s not just the cold that makes Alaska’s climate harsh. Daylight hours are quite short during Alaska winters. And in some places, the sun doesn’t even rise during that part of the year, meaning there’s little to no light at all. This dreary weather can easily lead to seasonal depression.

Aside from the obvious, this cold weather and little daylight present some other challenges for Alaska residents. Outdoor activities are difficult during the winter, and even a daily commute can become a challenge. Additionally, it means taking extra steps to prepare your home for winter.

Wildlife Encounters

Alaska is home to an incredible wildlife population that may be a huge selling point for some people. All the wildlife makes for excellent hunting and fishing, as well as plenty of photo opportunities of everything from whales to moose to bears.

Unfortunately, you also have an increased risk of having an up-close wildlife encounter that could turn dangerous. The state has one of the largest bear populations. And while bears tend to avoid humans, they can be deadly if you run into them in the wrong scenario. And even an animal that may not seem dangerous can pose a risk to humans if it feels threatened.

Location

The location of Alaska is one of the state’s biggest downsides (though some people might see it as a huge upside). Alaska isn’t attached to the lower 48 states. You can only get there by plane, boat, or by driving through Canada. Not only does it take a long time to get to Alaska, but it can also be expensive.

The state’s location also has some other downsides. For example, some companies restrict shipping to states in the lower 48 meaning, Alaskans can run into the same problems as some people outside the U.S., where some items simply can’t be shipped there (or at least not affordably).

Benefits Of Moving To Alaska

We’ve gone over the downsides of moving to Alaska, but there are also plenty of advantages we should talk about.

No Income Or Statewide Sales Taxes

Alaska is one of eight states that doesn’t have a state income tax. As a result, residents can keep more of their paychecks in their pockets and have less of their money go to the government. Additionally, there’s no statewide sales tax.

It’s important to remember, of course, that Alaska still must collect revenue to fund the government. It ranks among the top half of states for property taxes. Additionally, Alaska allows local governments to collect sales taxes, meaning the lack of a statewide sales tax doesn’t mean you won’t pay any at all.

Employment Opportunities

If you’re worried about finding a job in Alaska, you probably don’t need to be. The state has no shortage of job opportunities. Some of the state’s top industries — and those with the most job opportunities — include oil, tourism, fishing, timber, mining and agriculture.

It’s also worth noting that with the rise of remote job opportunities, you don’t necessarily need to find a job in Alaska to live there. Someone who’s always wanted to live in the state could do so with a remote job.

And with the many job opportunities come high incomes. The state’s median income is $80,287, according to the U.S. Census Bureau, which is about 15% higher than the nation overall.

Possibility To Live Off The Grid

If you’ve ever considered living off the grid, Alaska is the perfect place to do so. There’s a large community of people who live off-grid, or at least partially off the land.

If you’re considering living off-grid, you’ll need to consider things like power systems and food acquisition. The state’s harsh winters can make both of these things difficult. The good news is there are plenty of people in the state who are already living this lifestyle and are happy to share their wisdom (and maybe even their resources).

Popular Destination For Outdoor Adventures

We’ve already talked about how Alaska is an excellent place for outdoor recreation, but it bears repeating. There is truly no better place for someone who loves outdoor adventures like hiking, dog sledding, whitewater rafting, skiing, boating, whale watching, sightseeing and more.

Alaska is home to more national parks than any other state except California. Some of the state’s eight national parks include Denali National Park and Preserve, Glacier Bay National Park and Preserve, Katmai National Park and Preserve, Kenai Fjords National Park and more.

And as an added bonus, there’s truly no better place in the United States to witness the Northern Lights.

Thriving Education System

If you have children, you can trust they’ll get a good education in Alaska. The state is home to one of the highest-rated education systems in the country, with SAT and ACT scores that are above the national average.

And it’s not just K-12 education that’s highly rated in Alaska. The state is also home to some well-known schools like the University of Alaska-Anchorage, the University of Alaska-Fairbanks, and more.

Alaska Pays Those Who Live There

If you’ve heard that Alaska pays people to live there, it’s not just a rumor — it’s the truth. Through the Permanent Fund Dividend, Alaska offers its residents a share of the state’s minerals revenue.

You’re eligible to share in the annual revenue of the Permanent Fund Dividend if you are a resident of the state, intend to remain a resident indefinitely, haven’t claimed residency in another state, and weren’t incarcerated or sentenced to a felony during the year in question.

Where Is The Best Place To Live In Alaska?

Alaska offers plenty of great places to live. The one that’s best for you will depend on what you’re looking for in a home.

Anchorage

Anchorage is the largest city in Alaska, with a population of roughly 288,000. It’s located in the southern part of the state and sits at the intersection of the Knik Arm, the Turnagain Arm, and the Cook Inlet. As the most populated state, it’s perfect for anyone who wants to enjoy all that Alaska has to offer while also having access to big-city amenities.

The city has much of the rich culture you’d find in any major city, along with restaurants, art galleries, nightlife and more. However, you’re just miles from some of the best hunting, fishing, and outdoor recreation you can find.

Juneau

Juneau is the state capital of Alaska, located along the state’s southern tip in the Gastineau Channel and Alaskan Panhandle. Juneau has a population of nearly 32,000 people.

The city is quite remote, making it an excellent place for hiking, seeing wildlife, exploring glaciers, fishing, whale watching and more. You can’t actually drive to Juneau. It’s accessible by plane, but most summer visitors actually get there by cruise ship.

Fairbanks

Fairbanks is located inland Alaska (though residents still have access to water as it sits on the Tanana River). The city is home to nearly 33,000 residents. The city is nearly fully surrounded by nature and features activities like hiking, hunting, fishing, river excursions, wildlife viewing, sightseeing, aviation and more. Just about any outdoor activity you want to do is accessible from Fairbanks.

How To Move To Alaska

If you’re planning to move to Alaska, it’s important to be prepared. Because of how remote Alaska is, it’s as challenging as any other move across the country no matter where you’re moving from. Below are a few steps to take as you plan your move.

Create A Savings Plan

The cost of moving to Alaska is likely to cost thousands of dollars, so you’ll have to start saving ahead of time. If you’re planning to rent, you’ll need to save a security deposit (and will probably want a few months of rental costs set aside). And if you’re saving for a house, you’ll also need to consider your down payment and closing costs.

The best way to save for your move is with a bit of quick math. Do some research to figure out how much you’ll need to save. Then divide that by the number of months until your move, and you’ve got the amount you must save each month.

Decide Which Area Is Right For You

A big decision you’ll have to make is where in Alaska you want to live. We talked about some of the most popular spots in the section above, but those are far from the only options.

To consider your target location, start by making a list of things you want in your new home. Do you want to live in a large city or a small home? Do you want access to mountains or water? What types of outdoor activities or urban amenities do you want access to?

From there, you’ll be able to narrow down your list considerably and can choose the best city to call home.

Work With A Trusted Real Estate Agent

When you’re renting or buying a house out of state, having a trusted real estate agent by your side is critical. The agent will be familiar with the local housing market, meaning they can provide plenty of guidance. Start researching professionals as soon as you know you want to buy a house so you can find a real estate agent that’s right for you.

Know Your Financing Options

We’ve already talked about the cost of moving to Alaska, but what about the cost once you get there? If you’re planning to buy a home, chances are you’ll need a mortgage. Research your different financing options and what types of loans you might qualify for to find the best choice for you.

Prepare To Relocate

As your move gets closer, you’ll need to plan the logistics of your relocation. Decide how you’ll get there and whether you’ll drive, fly, take a boat, etc. Also remember that some parts of the state aren’t accessible by road, meaning you’ll have to make other arrangements.

In addition to deciding how you’ll get there, you’ll also need to consider how your belongings will get there. Maybe you’re moving somewhere easily accessible by road and can simply rent a moving truck. However, it could be more complicated if you’re flying and need a way to ship your belongings there.

Finally, before making your big move, make sure you have employment and housing lined up. The last thing you want is to arrive in Alaska without an income or a place to live.

The Bottom Line: Are You Ready To Move To Alaska?

Alaska can be an excellent place to call home. It offers perks like low taxes and more outdoor recreation than any other state. If you’re considering a move to the last frontier, start the planning process by connecting with an agent today.