Best places to live in Alaska for retirement

With its vast, untrammeled wildernesses, an abundance of natural resources and adventurous allure, Alaska has long beckoned to those seeking a fresh start. For outdoors lovers, there's almost nowhere better. Almost any kind of outdoor sport you can do, from hiking to boating to fishing, is there. Stunning natural scenery and wild animals like bears and moose are your next-door neighbors. Big cities and small towns alike offer affordable rent and cost of living. Thriving industries like tourism and fishing provide robust, well-paying careers.

On top of it all, you also get paid roughly $1,000 per year to live there thanks to the Permanent Fund Dividend. There's also no sales tax. The winters aren't for the faint of heart, but the natural beauty and opportunities for fun and good work-life balance are worth it. If you want to start your next adventure, these are the best places to live in Alaska.

The best cities in Alaska

  • Anchorage
  • Fairbanks
  • Homer
  • Juneau
  • Kenai
  • Ketchikan
  • Kodiak
  • Sitka
  • Talkeetna
  • Wasilla

Anchorage

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 288,121
  • Median household income: $84,813
  • Average commute time: 18.6 minutes
  • Walk score: 47
  • One-bedroom average rent: $975
  • Two-bedroom average rent: $1,650

From higher education at the University of Alaska – Anchorage to cultural immersion, Alaska's largest city has plenty to offer residents. It has many of Alaska's “biggest" features, from the biggest and busiest airport to its population. As such, it's seen as the gateway to the state. And you couldn't ask for a better basecamp or jumping-off point.

Around town, savor the flavors of Alaska at local restaurants and breweries. Learn about Alaska's history and culture at museums like the Alaska Native Heritage Center. Cozy residential neighborhoods have well-ranked schools. There are also family-friendly activities like the Alaska Zoo. You can even go fishing or look for wildlife around the city. It's the perfect combo of big city living with wide, open spaces.

Despite being Alaska's biggest city, nature is never far away. Urban parks and bike paths like the Tony Knowles Coastal Park are easily accessible. And nearby wilderness areas like Chugach State Park are short drives away. For a major city, rent is also very affordable.

Fairbanks

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 32,702
  • Median household income: $64,397
  • Average commute time: 14.1 minutes
  • Walk score: 32
  • One-bedroom average rent: $700
  • Two-bedroom average rent: $1,200

Popular with young people and families for its affordability and compact size, Fairbanks is a mid-sized city near the middle of the state. Sitting on the banks of the Chena River, it's Alaska's second-biggest city. During summer, Fairbanks experiences 24 hours of daylight. Living with the Midnight Sun is one of the most unique parts of living in a northern Alaska city. One of the reasons for the youth-dominated demographics is because of higher education options. Fairbanks is home to the highly-regarded University of Alaska Fairbanks.

As a popular stopping point for cruise ships, tourism is also a major industry. Locals and visitors alike get to marvel at the incredible Northern Lights. Outdoor activities like dog sledding and exploring the nearby Arctic Circle are common activities among residents. But locals can also enjoy annual festivals and sports events and a thriving arts scene.

Homer

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 5,719
  • Median household income: $61,332
  • Average commute time: 12.9 minutes
  • Walk score: N/A
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

The small town of Homer is a four-hour drive south of Anchorage at the bottom of the Kenai Peninsula. Known as the Halibut Fishing Capital of the World, people come here to fish not just for fun but also for work. Against a dramatic mountain backdrop, tons of fishing boats crowd the docks.

Along with fishing, the friendly, welcoming locals and cozy, small-town vibes endear this remote community to outsiders. It boasts of a low cost of living and a multi-generation population ranging from families to retirees. Some of southern Alaska's most stunning coastal landscapes are close by, like Kenai Fjords National Park.

Around town, you can enjoy fresh seafood. You can also learn about native flora and fauna at the Alaska Maritime National Wildlife Refuge. An abundance of popular galleries and the prominent Pratt Museum has given Homer the reputation as one of the best small town art scenes in Alaska.

Juneau

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 31,973
  • Median household income: $88,077
  • Average commute time: 15.3 minutes
  • Walk score: 34
  • One-bedroom average rent: $1,050
  • Two-bedroom average rent: $1,300

While most people assume Anchorage is the state capital, it's actually this charming town on Alaska's southern panhandle. As the capital, government work dominates the local economy. With a high median household income, Juneau is a prosperous community that also benefits from strong tourism. Sandwiched between the Gastineau Channel and snow-capped mountains, there's no match for the views. Home to Alaska's only professional theater company, arts and culture flourish here. The cute waterfront and downtown have tons of dining and shopping options, as well as museums.

As with any city in Alaska, nature is right next door. Juneau is especially known for its proximity to many glaciers. Mendenhall Glacier is just outside of town, and you can hop on a boat or plane to get to Glacier Bay National Park. You can also find skiing at Eaglecrest Ski Area. Hiking enthusiasts could spend a lifetime exploring the Tongass National Forest.

Kenai

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 7,590
  • Median household income: $66,612
  • Average commute time: 20.1 minutes
  • Walk score: 17
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

If you want to eat, sleep and breathe fishing, Kenai is hands down one of the best places to live in Alaska. The Kenai River, which flows through town and empties out into Cook Inlet, is world-renowned for its king salmon fishing. Both recreational and commercial fishing are huge industries here. Tourism and natural gas and oil extraction also take up sizable chunks of the economy.

Work aside, Kenai boasts of beautiful surroundings, outdoor recreation, wildlife viewing and unique history. Russian explorers set up a settlement here in the late 1700s, leaving behind Russian architecture like orthodox churches. You can look for bears and other local wildlife in the nearby Kenai National Wildlife Refuge. Anchorage is also a three-hour drive away. But you can make the trip north in half an hour by Alaskans' preferred method of travel, flight.

Ketchikan

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 8,037
  • Median household income: $65,809
  • Average commute time: 10.6 minutes
  • Walk score: 45
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

With its charming waterfront of colorful houses, Ketchikan is a bustling, beautiful little town to call home. Located at the entrance to southeastern Alaska's Inside Passage, it's usually the first stop for tourism cruises. So, tourism is a major moneymaker here, along with education and fishing. Rents and cost of living are affordable, appealing to students, families and young people.

Higher education is available at the University of Alaska Southeast-Ketchikan. It's also one of the most walkable towns on this list. You can easily stroll around the historic town center for shopping and dining. The nearby Tongass National Forest has tons of hiking trails in the world's biggest temperate coastal rainforest. Misty Fjords National Monument offers wildlife viewing, hiking and epic scenic vistas.

Kodiak

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 5,458
  • Median household income: $69,259
  • Average commute time: 11.0
  • Walk score: N/A
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

Another bastion of Alaska's massive fishing industry, Kodiak is an island-bound city in southern Alaska. Located on Kodiak Island, life here is quite remote. Ferries from Homer on the mainland take nine and a half hours. From Anchorage, it's a one-hour flight.

But even with its isolation, you'll still find plenty of things to do. A satellite campus for the University of Alaska is here, offering higher education opportunities. Apart from fishing, many people in town have military ties and careers. Both the Coast Guard and the U.S. Navy operate bases here. Bear watching, diving into the island's expansive history and outdoor recreation are all popular pastimes. As a close-knit community with a high median income and affordable cost of living, lots of families choose Kodiak as their Alaska home.

Sitka

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 8,407
  • Median household income: $81,708
  • Average commute time: 11.0 minutes
  • Walk score: N/A
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

This picturesque town on the Alaskan Panhandle boasts of the second-highest median household income on this list. Many residents work in the thriving, hugely profitable seafood industry. But with popular outdoor areas like the Tongass National Forest nearby, tourism and outdoor recreation are also big. Located on an island, the cost of living is slightly elevated since goods come from the nearby mainland. But the high income offsets that.

Sitka has a wonderful sense of community, friendly residents and cultural heritage. Here you can learn about the history of Russian exploration in Alaska, as well as indigenous cultures at the Sitka National Historical Park. And locals are not lacking for good grub, with fresh seafood and their own microbrewery. Same as in other Alaska cities, a wealth of outdoor fun like hiking or kayaking is at your fingertips, as well.

Talkeetna

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: N/A
  • Median household income: N/A
  • Average commute time: N/A
  • Walk score: N/A
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

If you came to Alaska to live in the middle of nowhere and love it, Talkeetna is just the ticket. A small, close-knit village of just over a thousand residents, Talkeetna is the gateway to exploring Denali National Park. Mountaineering expeditions, in particular, kick off their summit bid from here. So, tourism and outdoor recreation are major industries. When not out tackling the wilds of Alaska, the historic town center has art galleries, restaurants, breweries and shops.

The benefits of living here include low cost of living, friendly neighbors and the chance to meet people from all over the world. If you want to spend as much time outside as possible, this is the spot. You can go hiking, fishing, climbing, skiing and so much more. But Anchorage is also a two-hour drive away, giving you access to big city amenities and attractions.

Wasilla

Best places to live in Alaska for retirement
Best places to live in Alaska for retirement

  • Population: 9,456
  • Median household income: $62,667
  • Average commute time: 28.7 minutes
  • Walk score: 7
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: $1,250

If you want to live close to Anchorage but not quite in the city, Wasilla is a great option. Anchorage is roughly a 45-minute drive south. In fact, many Wasilla residents commute back and forth to Anchorage. This contributes to the higher average commute time than other top Alaska cities.

Along with a more laidback quality of life, the benefits of Wasilla living include affordable rents, good schools and outdoor fun. Easy and accessible wilderness areas like the Wasilla Creek Wetlands Trail and the Live Steamers train attraction appeal to families with young kids. Wasilla also boasts of a ton of interesting Alaska history. Fun, informative museums about Alaska transportation and the Iditarod dog race are well worth checking out. Wasilla was actually the original starting point for this famous race.

Find your own best place to live in Alaska

The best places to live in Alaska have the best of both worlds, from quaint small towns to cosmopolitan big cities. Find an apartment in your dream Alaskan city and become one with the wilderness.

Is Alaska a good state to retire in?

Overall, Alaska is a pretty friendly place to retire, tax-wise. There's no state income tax in Alaska. If you decide to pick up a job, you'll enjoy an instant boost in your paycheck.

What is the most affordable place to live in Alaska?

King Cove is possibly the cheapest place to live in Alaska, with a cost of living of just over 4.1% over the national average. In fact, the cost of living here is well below the Alaskan average — 12% lower, to be exact.

Is it expensive to retire in Alaska?

But it's no secret that Alaska is also one of the most expensive states in which to live. Healthcare and grocery costs in particular soar well above the national average, even in the state's most affordable cities.

Where is the nicest place to live in Alaska?

The 9 Best Places to Live in Alaska.
Anchorage..
Juneau..
Wasilla..
Whittier..
Unalaska..
Kenai..
Fairbanks..
Kodiak..