How Much Does It Cost to Live in Anchorage, Alaska?

Anchorage is a medium city located in Alaska with a metropolitan area population of 298,610. A couple could live a moderate lifestyle in Anchorage on a budget of $3,839 per month, or $46,063 per year.

Cost of Living in Anchorage, Alaska

As noted above, the cost of living in Anchorage, Alaska is $3,839 per month for a couple living a moderate lifestyle. This budget consists of $2,014 for housing related costs, $913 for food, and $911 for other costs, all of which will be broken down below.

Housing

  • A one-bedroom apartment in the city center of Anchorage is estimated to cost $1,525
  • Basic utilities including electricity, water, and gas will run about $338
  • High-speed internet averages $151

Food

  • Typical grocery costs of $696 per month include things like bread, eggs, milk, cheese, rice, chicken breast, bottled water, fruits, and vegetables
  • Alcohol including beer and wine for moderate home consumption costs about $108
  • Frequent coffees in a neighborhood café are estimated to be about $110

Other

  • Meals out are estimated to be $515 per month, including 4 meals in mid-range restaurants and 8 in inexpensive restaurants
  • Transportation costs of $150 for public transport passes and occasional taxis
  • Fitness center memberships of $182
  • Cinema tickets of $64 include several outings for international releases

Note that Anchorage, Alaska is a very walkable city with a Walk Score of 77/100, which means you won’t need a car if you are living in the city center and you may even save some money by not using public transportation and taxis very often.

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Amount of Money Needed to Retire in Anchorage, Alaska

Many people searching the internet for the cost of living in Anchorage, Alaska are doing so to see if and when they can quit their jobs and retire. A popular and easy way to calculate your retirement number is using the 4% Rule.

The 4% Rule estimates that a person(s) could withdraw 4% of their retirement nest egg and never run out of money. Using this calculation, a couple would need an investment portfolio of $1,151,571 to live a moderate lifestyle in Anchorage, Alaska.

Annual expenses of $46,063 ÷ 4% = $1,151,571 portfolio needed.

Of course, everyone’s financial situation is different, and the above calculation could change based on any other sources of passive income and social security income.

Summary

Overall, the cost of living in Anchorage, Alaska is affordable coming in at $3,839 for a couple living a moderate lifestyle. Those seeking to retire could do so comfortably with a retirement portfolio of $1,151,571.

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