The high cost of living that's always existed in Alaska was worsened during the pandemic and remains high despite lowered inflation.
FAIRBANKS, Alaska - Over the last few years inflation has risen and the cost of living has increased for the nation. Alaska was no exception as prices rose sharply putting further stress on residents who already live in one of the most expensive places in the country.
While Alaska, “historically [has] been a very high cost location,” according to Dan Robinson, an economist with Alaska’s Dept. of Labor, between 2020 and 2022 the cost of living went up as prices rose sharply. Due to inflation during the COVID-19 pandemic, 2022 tied for the fifth most expensive year for cost of living in the last frontier.
Comparing Alaska’s communities to the lower 48, Fairbanks’ cost of living was 23% higher than the national average, with Manhattan, New York among the most expensive locations and Harlingen, Texas among the least expensive.