9 Most Affordable Places to Live in Alaska in 2025

“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 April, 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 9 most affordable places to live in Alaska. And they all have a median home sale price under $382,700. From Badger to Fairbanks, read on to see what cities you may want to consider moving to.

#1: Kenai

Median home price: $296,000
Average sale price per square foot: $201
Median household income: $74,907
Nearest major metro: Anchorage (160 miles)
Kenai, AK homes for sale
Kenai, AK apartments for rent

The first city to make our list of the most affordable places to live in Alaska is Kenai. It’s located on the Kenai Peninsula, southwest of Anchorage. 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.

#2: Steele Creek

Median home price: $299,900
Average sale price per square foot: $119
Median household income: $117,260
Nearest major metro: Fairbanks (13 miles)
Steele Creek, AK homes for sale
Steele Creek, AK apartments for rent

Taking the second spot is Steele Creek, a popular Fairbanks suburb. Home to about 6,500 residents, Steele Creek is a quaint place to live with easy access to Alaska’s nature. For example, you can check out Birch Hill Recreation Area, visit the Alyeska Pipeline / Viewing Point, or spend the day at Ski Land Ski and Snowboard Area. 

#3: College

Median home price: $310,000
Average sale price per square foot: $87
Median household income: $76,831
Nearest major metro: Fairbanks (5 miles)
College, AK homes for sale
College, AK apartments for rent

The third city on our list is College, another Fairbanks suburb. There are about 12,400 residents in College, which is home to the University of Alaska Fairbanks. You can find a lot of museums and attractions in College such as the University of Alaska Museum of the North, the Early Russian Settlement, and the World Ice Art Championships – Ice Alaska. You can also explore the beautiful nature, like the Georgeson Botanical Garden, Alaska Range Overlook, and the Skyline Ridge Park Trail.

#4: North Lakes

Median home price: $326,000
Average sale price per square foot: $273
Median household income: $102,785
Nearest major metro: Anchorage (44 miles)
North Lakes, AK homes for sale
North Lakes, AK apartments for rent

Taking the next spot is North Lakes, home to about 10,300 residents. North Lakes is located just north of Wasilla and is about 44 miles north of Anchorage. It’s a great city if you’re looking to be close to nature and attractions. For example, North Lakes is close to Independence Mine State Historical Park, Museum of Alaska Transportation, and Reed Lakes Trailhead, a picturesque hiking area.

#5: Badger

Median home price: $346,000
Average sale price per square foot: $203
Median household income: $87,169
Nearest major metro: Fairbanks (11 miles)
Badger, AK homes for sale
Badger, AK apartments for rent

Home to about 19,200 residents is the town of Badger. It’s about 11 miles southeast of Fairbanks, making it a convenient location. The median home sale price is about 40K less than the state’s average, so you’ll save substantially. Badger is a charming city, with a lot to offer its residents. 

#6: Ketchikan

Median home price: $349,000
Average sale price per square foot: $284
Median household income: $76,835
Ketchikan, AK homes for sale
Ketchikan, AK apartments for rent

Sixth is Ketchikan, a popular tourist destination for those looking to travel through the Inside Passage. The Inside Passage is a cruise route that allows visitors to see the Misty Fjords National Monument. Ketchikan has a year-round population of about 8,100 and plenty of things to do. Some popular attractions include the Totem Bight State Historical Park, Totem Heritage Center, Southeast Alaska Discovery Center, and the historic Main Street. 

#7: Fairbanks

Median home price: $350,000
Average sale price per square foot: $122
Average rent for a 1-bedroom apartment: $1,459
Median household income: $66,572
Fairbanks, AK homes for sale
Fairbanks, AK apartments for rent

The seventh city on our list of most affordable places to live in Alaska is Fairbanks. Fairbanks has about 31,500 residents and is the second-largest city in Alaska. The median home sale price is $350,000 which is about $30K less than the median home sale price in the state. If you find yourself moving to this 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. 

#8: Kalifornsky

Median home price: $353,000
Average sale price per square foot: $189
Median household income: $90,703
Nearest major metro: Anchorage (152 miles)
Kalifornsky, AK homes for sale
Kalifornsky, AK apartments for rent

Situated on the Kenai Peninsula is Kalifornsky, home to about 8,300 people. This town is located along the Cook Inlet, meaning you’ll find plenty of water views. Kalifornsky is near other small towns like Nikiski and Kenai, so you can easily explore the East Foreland Lighthouse Reserve and the Kenai National Wildlife Refuge. 

#9: Anchorage

Median home price: $379,750
Average sale price per square foot: $327
Average rent for a 1-bedroom apartment: $1,348
Median household income: $98,152
Anchorage, AK homes for sale
Anchorage, AK apartments for rent

Claiming the final spot on our list of affordable places to live in Alaska is Anchorage. Located along the Cook Inlet, there are beautiful views throughout the area. Anchorage has about 290,000 residents, making it Alaska’s most populous city. There are plenty of attractions in Anchorage to choose from, like the Alaska Native Heritage Center, the Alaska Aviation Museum, the Alaska Center for the Performing Arts, and the Anchorage Museum. If you’re looking to explore the outdoors, make sure to check out Chugach State Park, Beluga Point, Bird Point, Kincaid Park, and Hillberg Ski Area. 

>> Read: Popular Anchorage, AK, Neighborhoods to Live in

Methodology: All cities must have over 6,500 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 April 2025. Average rental data from Rent.com April 2025. Population and median household income data sourced from the United States Census Bureau.

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