Alaska’s three major cities continue to have higher living costs than most of the nation’s urban areas, according to a newly released analysis published by the Alaska Department of Labor and Workforce Development.
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Juneau, Anchorage and Fairbanks are in the top 25 among 257 metropolitan national areas. Among the three, Juneau had the highest overall cost of living, at 31.7% above the national urban average in 2025, according to the analysis, published in the July issue of Alaska Economic Trends, the department’s monthly research magazine. Anchorage’s cost of living was 25.5% above the national average, while Fairbanks’s costs were 22.9% above the national average, according to the analysis.
While significantly higher than the national urban average, the Alaska cities last year were much cheaper than cities like New York, where the borough of Manhattan has overall living costs that were 139% above the national average, or Honolulu, where overall costs were 83.9% above the national average.
The Alaska cities’ rankings are driven in large part by two categories – health and groceries.
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Alaska’s three major cities continue to have some of the nation’s highest health care costs, according to the 2025 statistics. But in a departure from past years, the Alaska cities no longer top the health-cost list. Winchester, Virginia, wound up with the highest health costs last year, at 49.4% above the national average, followed by New York City’s Manhattan Borough, at 43.3 % above the national average. Anchorage had the third highest health costs, at 42.7% above the national average, followed by Juneau at 39.5% and Fairbanks at 35.4%, according to the statistics.
“It was surprising, a little, to see them fall to three, four and five this year,” said Sam Tappen, the state labor economist who authored the report.
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