F
32%
Overall NAT. AVG.
20%
Goods & Services NAT. AVG.
24%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Fairbanks Alaska National
Cost of living132129100
Goods & Services120120100
Groceries124124100
Health care153148100
Housing124135100
Transportation109115100
Utilities222158100

An Overview of Cost of Living in Fairbanks, AK

Understanding the cost of living in Fairbanks can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Fairbanks cost of living index is 132, which is 32% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you value affordability in your search for a new place to live, Fairbanks may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Fairbanks falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs make up a big chunk of the cost of living in Fairbanks, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 24.5% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Fairbanks, you you will have to spend 20.1% more than average when compared to the typical prices for these items, making it a more expensive place to live.

The surge in grocery costs is indeed alarming, especially when groceries make up a large portion of your monthly expenditures. Over the past two years, there has been an inflation of over 10% in grocery prices. Unfortunately, Fairbanks does not fare better, with grocery expenses coming in at 24.1% higher than the national average.

What Do Locals Say About the Cost of Living in Fairbanks?

Nobody knows their city better than the people who actually live there. So, we asked 14 local residents how they would rate the cost of living in Fairbanks and this is how they responded. 29% of people said that the cost of living was affordable, with prices decreasing, while 71% of people said that the cost of living was very expensive and prices continue to rise.

Is Fairbanks Affordable?

Is Fairbanks an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Fairbanks, the median home price is 17.9% higher than what most folks pay across the country, and monthly rent prices are 39.8% higher than the usual rates. Income levels in Fairbanks come in at $64,397, which is 16.4% higher than the national average.

What Factors can Influence the Cost of Living in Fairbanks?

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Fairbanks, the healthcare costs are 53.1% higher than the national average.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Fairbanks, the transportation index is 9.1% higher than the national average.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Fairbanks, is 24.5% higher than the national average.

Where is the Data From?

The Fairbanks cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Fairbanks is 2% higher than the Alaska average
  • The cost of living in Fairbanks is 32% higher than the national average
  • Fairbanks housing is 24% higher than the national average
  • Alaska general sales tax is 100% lower than the national average
  • Alaska state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Fairbanks

See all the best places to live around Fairbanks

Compare Fairbanks, AK Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$93,607$7,801$2,184$2,808
      Renters$55,528$4,627$1,296$1,666
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Fairbanks, AK, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Fairbanks homeowners, is $93,607. This would allow for a maximum of $2,184 per month to be spent on housing costs. For renters, the median monthly income is $55,528 which would result in a maximum of $1,296 to be spent on rental costs.

      Alaska Sales Tax

      State General Sales Tax With Max Surtax
      Alaska 0% 7%

      Alaska Income Tax

      State Income Tax (Low) Income Tax (High)
      Alaska 0% 0%

      Goods & Services

      Item Fairbanks National avg. Difference
      Haircut $32.06$24.2632.2%
      Beauty Salon $51.33$45.5612.6%
      Toothpaste $3.77$3.701.7%
      Shampoo $1.35$1.285.7%
      Movie $16.17$12.1333.2%
      Bowling $17.55$18.002.5%

      Groceries

      Item Fairbanks National avg. Difference
      Ground Beef $6.57$5.8412.5%
      Fried Chicken $2.02$1.5728.4%
      Milk $5.16$4.6710.4%
      Potatoes $5.98$4.9321.2%
      Pizza $13.49$12.0911.6%
      Beer $13.88$10.4133.3%

      Health Care

      Item Fairbanks National avg. Difference
      Optometrist $274.44$125.68118.4%
      Doctor $243.27$135.7879.2%
      Dentist $169.02$113.2949.2%
      Ibuprofen $12.61$10.6518.4%
      Lipitor $536.87$468.6014.6%

      Housing

      Item Fairbanks National avg. Difference
      Home Price $217,700.00$184,700.0017.9%
      Avg. Mortgage Payment $2,423.46$2,346.693.3%
      Apartment Rent $1,327.00$949.0039.8%

      Transportation

      Item Fairbanks National avg. Difference
      Gasoline $3.80$3.469.8%
      Tire Balancing $64.35$59.927.4%

      Utilities

      Item Fairbanks National avg. Difference
      All Electricity $579.35$193.99198.6%
      Phone $187.48$192.252.5%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Fox, AK18713635.7%
      South Van Horn, AK396982.0%
      Moose Creek, AK57412524.6%
      Goldstream, AK3,31512828.5%
      Ester, AK2,17413030.0%
      Fairbanks, AK31,42713232.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Aiken, SC31,428954.8%
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      El Paso de Robles (Paso Robles), CA31,48014848.5%
      Shawnee, OK31,3618416.0%
      Redmond, OR31,35911515.1%
      Fairbanks, AK31,42713232.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.