Cost Of Living In Fairbanks, Alaska (Taxes, Housing & More)

Boasting the largest city in the interior region of Alaska, Fairbanks is home to over 31,000 people, and gets thousands of visitors each year. People come from all around to see the Northern Lights or experience the nature and wilderness Alaska has to offer.

With a cost of living index of just 108.6, you might be thinking that Fairbanks is an affordable place to raise a family. And in some ways, you’re not wrong – but beware! There are a lot of hidden costs to living in Fairbanks. Before you commit and book that plane ticket, be sure you have all the financials in order… including the incredibly high utility bills!

Do these prices seem “cheaper” to you, considering the housing cost of living index? Remember it’s not just the price of land or housing that is considered, but also the upkeep, taxes, and utilities… and as you’ll soon see, utilities are brutal.

Only 32.7% of housing in Fairbanks are single-family homes. 14.7% are townhomes, 23.9% are smaller apartment buildings, and 27.8% are larger apartment complexes.

18.1% of homes were built in 2000 or after, and 50.9% were built between 1970 and 1999. 28.3% of homes were built earlier, between 1940 and 1969. 32.1% of all homes in Fairbanks have 3 bedrooms, while 30.7% have 2 bedrooms. Just 15.5% have 1 bedroom, and 13.7% have 4 bedrooms.

The utility cost of living index in Fairbanks is a shocking 134.1, making it significantly more expensive to have basic utilities than the rest of the United States. For a 915 square foot apartment, the average Fairbanks resident spends a staggering $319/month on utilities. This includes all the basics – electricity, water, garbage, heating, and cooling. For a high-speed internet connection, it will run a resident about $153/month. Have you budgeted properly for an extra $470 a month in utilities?

Why is it so high? Well, consider that the price of the residential electricity averages about 24.22¢/kWh, more than double the national average of 11.88¢/kWh. This is even higher than the average in Alaska, which sits at 17.88¢/kWh.

It’s widely known that groceries and food are more expensive in Alaska. It should come as no surprise that the grocery cost of living index is 133, making it approximately 30% more expensive than the rest of the United States. This is because of the light cycles in Alaska and heavy winter. The majority of food consumed in Alaska is shipped in, which means big money is involved!

Before you make the leap, be sure you’re budgeting properly for food. Financial experts recommend 11% of household income be spent on food and groceries. With a median household income of $61,665, that would leave families with approximately $6,783 annually. This works out to $565 a month. That seems like a lot… but it is about $130/week. With groceries so expensive, it isn’t hard to have that bill!

The typical one-way commute for residents of Fairbanks, Alaska is just 12.9 minutes. This is significantly lower than the national average of 26.4 minutes. With a transportation cost of living index of just 75.1, it is noticeably cheaper to get around Fairbanks than the average US city.

71% of people in Fairbanks drive their own cars to work, while 16.2% carpool with coworkers. Just 1.8% work from work, and 1.2% take mass transit options to work each day.

The average price of car insurance in Fairbanks is just $1,152 annually, significantly less than the national average of $1,672. Gas prices in Fairbanks are higher than the national average. Fairbanks residents spend an average of $2.80 per gallon on gasoline.

There are 26 elementary schools, 19 middle schools, and 15 high schools in Fairbanks. 23 schools are within the public district, 3 are public charter schools, and there are a staggering 73 private schools. The public school system by itself handles over 13,000 students annually.

Fairbanks school systems regularly score within the top 50% of schools in the state. The average math proficiency score is 41%, compared to the state average of 37, and the average reading proficiency score is 45%, compared to the state average of 43%.

The student: teacher ratio in Fairbanks is higher than the state’s average, at 18:1 versus 17:1.

Believe it or not, Fairbanks is full of things to do! The University of Alaska Museum of the North holds over 2 million artifacts and specimens, and has an ever-changing lineup of exhibits. Tickets are $16 for adults, $14 for seniors aged 65+, $9 for those 5-12, and just $12 for locals with a valid Alaska state ID. The Fountainhead Antique Auto Museum is also in Fairbanks and has nearly 100 antique vehicles. Tickets are just $15 for those 13 and older, and $9 for kids 6-12.

Looking for something a little cheaper? There is plenty of nature! The Alyeska Pipeline Viewing Point is fascinating, and completely free, as is McKinley Explorer, traveling the James Dalton Highway, and walking through the Creamer’s Field Migratory Waterfowl Refuge.