It’s spendy living in Alaska to start with, but a new study says Juneau is the most expensive place in the state to live.
While other places have higher energy or grocery costs, the combination of all those factors with Juneau’s high housing costs make the capital city the most expensive place in the state to live according to a new study by economists with the Department of Labor and Workforce Development’s Research and Analysis Section.
The annual cost-of-living study looked at a variety of costs facing Alaskans, including apparel, recreation, education and communication as well, although housing was by far the largest single expense for most Alaskans, the study said.
During the year the biggest single increase was in energy costs, which drive up costs for both housing and the second biggest expense, transportation.
“When you compare cost of living to incomes, all of our Alaska cities are above the national average, with Juneau highest at 139 percent of the national average, followed by Fairbanks at 137 percent, Anchorage at 130.6 percent and Kodiak at 127.6. By comparison, in the Lower 48 you have to visit major metro areas like New York City and Washington, D.C., to find higher costs of living,” said Labor Commissioner Dianne Blumer, a former Juneau resident, who introduced the study in the department’s monthly Labor Trends magazine.
While Anchorage has “relatively affordable” heating with its access to natural gas, Juneau heats mostly with fuel oil, which drove up costs in the last year, the study said.
While Anchorage edged out Juneau slightly in the price of single-family homes, its wages were much higher, making those homes more affordable.
“Higher earnings can offset home costs, though, and this factor makes Juneau the least affordable market.” Fried said in the study.
Average homes in Anchorage were valued at $329,000 last year, just above second highest Juneau’s $321,000, the study said.
The statewide average costs were $282,000, with the lowest housing prices in Alaska in Kenai and then the Mat-Su Boroughs.
To calculate how affordable those costs are, the study compares them to incomes, and determines that it would take 1.6 average incomes in 2011 to buy a house in Juneau, well above the 1.4 incomes needed in Anchorage.
Because of Anchorage’s proximity to the Mat-Su, the best housing deal was for an Anchorage worker to buy a Mat-Su house, which could be done with a single average income. Presumably, that would drive up transportation costs.
Rents in Juneau were also high, but not the highest in the state.
Buying groceries is assumed to require about 16 percent of family income in 2011. The study used an existing quarterly grocery price index for its calculations. That study calculated the cost in Juneau for a family of four with children ages 6-11 at $153.45 per week.
That amount was 108 percent of what the same groceries would cost in Anchorage, which was used as a base level for the state.
Other Southeast costs included Ketchikan at 122 percent of Anchorage’s level, Petersburg at 127 percent, Sitka at 141 percent and Haines at 147 percent.
Kenai tied Juneau at 108 percent for second lowest, while Fairbanks was just a bit higher at 112 percent. Highest in the state was Dillingham at 250 percent of Anchorage.
The cost-of-living study included some caveats in making comparisons, however, cautioning that many products available in the larger cities simply weren’t available for comparison in the smaller ones. At the same time, it also warned that the comparison didn’t account for the possible substitution of subsistence-harvested meats, berries and other products for those from the grocery store.
The study also used an existing energy cost survey to calculate costs of gasoline and heating oil, which it said were $4 and $4.31 respectively, for Juneau. Only one other Southeast community was listed, Hoonah, with prices of $4.39 for gasoline and $4.39 for heating fuel.
Communities such as Juneau and Hoonah, which are regularly served by barges, had lower prices.
Dillingham paid $6.25 for gasoline and $5.16 for heating oil, but highest in the state was Hughes, which paid $8.25 for gasoline and $9 for heating oil. In Hughes, fuel is delivered by air.
While Juneau had the highest cost of living in Alaska, it was only 10th nationwide, with several expensive cities, such as San Francisco and New York City both exceeding Juneau’s costs.
• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com
Comments (49)
Add commentHurts
It kind of hurt for me to have to move, but I was able to move to the lower 48, take a pay cut (also went from 2 incomes to 1), and I was still able to buy a bigger house and live a similar lifestyle.
Juneau is just too bleeping expensive (The spendaholic city doesn't help things).
Good luck
Shocked
I'm shocked, SHOCKED to learn that living in a city with no access road coming or going also happens to be the most expensive place to live in the entire state.
In other news, grass is green, water is wet, etc
How was income calculated?
Did it include child support? Native Corp income? Public assistance and disability subsidies?
These things make a huge difference and are income.
If you are remotely careful about your spending; it can also be a relatively cheap place to live.
No surprises here
And here we go with a bunch of fluff coming our way to vote on this October; does Juneau really need to increase our debt obligations for a library that is rarely used in the valley? Let the Arts groups raise their funds for the JACC that THEY use, let the users at Eaglecrest PAY for their fun on the hill (myself included)....we don't NEED a bronze whale do we? All of the nice things would be nice to have, but are they neccessary?
I think I may vote down the sales tax for the first time in almost thirty years of voting in Juneau's elections and I am not too keen on the Mayors idea of the bond issue...wasn't our bond rating already taken down a notch due to our spending habits?
Time to get real Juneau, we are losing population to the rest of the state, we need to attract and retain our youth with good jobs and realistic housing opportunities, those are the "needs", not the "wants" in my opinion.
PS, a road all the way to Skagway would go a long ways in improving Juneau AND SE Alaska's future, thanks to the Parnell administration for keeping it moving forward.
Taxes
What about taxes? Surely Juneau tops all in the state with it's high sales tax and property taxes - not to mention its unstoppable addiction to unnecessary spending.
Buy the same items for less elsewhere!
Folks please vote down the sales tax this October. Too many people can not make it here living paycheck to paycheck. Please find a way to end the need to tax basic groceries. Anytime I hear the buy local jingle crap on the radio I make sure to check Amazon and other sites first-and usually make my purchases away from Juneau because of the local tax crap.
legislature & tourism
You can believe a lot of your high cost is related to the legislature being in Juneau and the tourism industry. A lot of infrastructure exist to support those two entities. While most of those cost are funded with some level of local taxes.
Everyone cries when the legislature considers moving away. It is a major economic aspect of Juneau. Yet it brings a large cost to locals when the politicians living on per diem are willing to pay those high rental rates which drive up property values and increase your property taxes.
Good or Bad??
Most residents view this as an honor; it maintains exclusivity!!
Bye Bye
Good news for population control. Hopefully the rain and high cost of living will motivate those that seek a dryer climate, with roads to everywhere, and low cost housing to go down to America to find their dream.
I guess no state sales tax and free money from the state just don't cut it.
Politics matters in cities
Politics matters in cities and states. Juneau loves their progressive, feel good politicians which has a definite cause and effect. Notice the article mentioned New York City and San Francisco as other expensive cities. What do they have in common with Juneau - liberal ideology. Big government doesn't come cheap.
Did you see where UPS is raising rates 4.9% this month?
I don't mind paying my share
I don't mind paying my share of the taxes to help our community function. I have heart burn over paying inflated prices for regular things. I too have been hitting Amazon hard. I don't have to leave home, it is 95% of the time cheeper and any issues are quickly resolved.
I am willing to pay a little more to buy local but 35 to 40 more is robery. There are several stores I quit shopping with because of the lack of customer service. If you are going to charge more, you should definatly step up the service part.
Legislature & Tourism
Without the legislature and tourism, the costs would likely be even higher. The only way Juneau can support stores like OfficeMax and Costco is because of the businesses that drive these industries.
"do the right thing"
no, what you really mean is if you and your 5 housemates/family members are all sucking off the government titie in some respect either legitimately or not then life in Juneau can be pretty cheap eh?
For the rest of us working stiffs who do not "qualify" for child support or government assistance, food stamps etc because either CBJ or the Feds think I make too much money, but I are struggling none the less. The last time I bought fuel oil to heat my house a mere 400 gals was $1600.00. Everything is going up and I have plenty of company in my boat. I divorced the cable TV two years ago, no land line, and I am constantly looking for ways to continue to par down my monthly expenses,so I make a daily effort to live within my means, but for most of us it's expensive to live in Juneau and not likely to get cheaper any time soon.
Who ever did this study is on
Who ever did this study is on drugs! $153/week for a family of four! Is that eating top ramen? Thats $5 and change per person per day. One meal at McDonalds? More than $5. Sub sandwich? $7 OK so eat at home? Spaghetti. $5 jar of sauce, $3 of noodles, $3 for an onion, at least $5 for meat ($10 if organic). Want garlic bread or a salad? Sorry, you've blown your families daily budget for one meal. We aren't talking grilling a t-bone here. Just spaghetti from a jar. From scratch? Double that. As a family of 5 we do about $500/wk. We eat good real food, and try to use organic but we are no where near $153/wk. Did they mean per person?
thislittlepiggie didn't go to the market
$3.00 for an onion? Are you having them freighted in special just for you?
Perhaps your food costs are so high because your screen name is an accurate reflection of your eating habits. Dried beans, lentils, and grains are SUPER cheap, very nutritious, easy to incorporate into many dishes, and are very sustaining. Broccoli is a very healthy vegetable that is also very cheap. Potatoes, squash, flour, milk--all are pretty cheap and can be made into a number of healthy, filling dishes.
This family of one spends about $50 a week on groceries, and that includes luxuries I could easily go without (chocolate, watermelon, ice cream, etc.).
It always amazes me when people complain about how expensive it is to eat. It's as expensive as you want it to be. You can eat more cheaply and healthily than a ramen-eating college student if you know how to cook and don't mind going without meat.
Now, if you'll excuse me, I need to go prepare a $.25 bowl of old-fashioned oats for breakfast. Maybe I'll sprinkle $.02 of cinnamon on top, add a $.05 half-teaspoon of sugar, and slice up a $.43 banana to go with it.
thislittlepiggie..... i don't know where you are buying....
your groceries here in town, but your price quotes are grossly over quoted. I have never paid $3.00 for a single onion here in town, anywhere. Pasta, same deal, a whole box of spagetti is $1.79 tops if you buy the store brand. Can't afford meat then don't put it into EVERY meal. $153 a week is approximately $688.50 a month on food, geeze I wish I had the luxary of spending that much money on food monthly. I'd be eating like a king. Stop buying processed foods, it is grossly overpriced and mostly devoid of nutrition. Buy in bulk when you can, grow a small garden if you can, learn to cook ahead and freeze meals or do canning on a small scale. In the end I am not sure if the stats quoted in the article are correct either but I bet you can do better with your food budget and still eat well.
well said Persnickity.....
if I could give you a thousand more "points" I would ;)
It's also worth mentioning
It's also worth mentioning that fishing in Juneau is as easy as getting a rod and reel and casting off the shore at DIPAC or Echo Cove. I make dozens of salmon cakes from pinkies every year, and vacuum seal my coho filets for later. Same deal if you're a hunter. Deer are plentiful around here, and if you're more ambitious, mountain goat and bear are also available. And porcupine, if you're into that sort of thing.
OMG p, we're all soooooo
OMG p, we're all soooooo impressed with your domestic skills! Give it a rest. Who are you to say how others should prep food?
And I'm telling Meeeeechelle that you're eating ice cream and chocolate. What kind of a good progressive does that?!!
$3.00 for a onion might be
$3.00 for a onion might be pushing it, but I do agree with Piggie to a point.
Just left the store and took notice of some prices. And these items were on sale.
Peppers $2.00 each
Onions $2.00 lb.
Cauliflower $2.39 lb.
Tomato’s $2.49 lb.
Watermelon through the roof.
Cherries over $5.00 lb.
You may think that’s not bad, however take note of the quality. I eat lots of vegetables and find most that are sold here have no flavor at all. Watermelon and tomatoes are the worst. Beans, lintels, rice and pasta may be somewhat inexpensive, but not everyone can eat them. As someone who tries to eat well I very seldom use anything out of a can, I make everything from scratch which can be expensive. And for those who are following Moochele and her program “lets move” it can become very expensive.
Boy o' Boy
Beans,lentils,snagged "pinkies" and roadkill; Oh and half a teaspoon of sugar to make it all go down!! Not!!
Portion Size
Honestly that is the biggest issue in our consumptive culture. Both with our waistlines and our pocketbooks. If you are spending $500 a week for a family of 5, your are not shopping or consuming as wisely as you could be. A big budget suck and health threat is what we drink. Energy drinks, juice, soda none of them are good for you. Compare the calorie and sugar content of an apple to a glass of apple juice, keep in mind the average glass is 12 oz or more.
A family of 4 with elementary school children could very easily eat on $150 a week. Maybe not all box food and organic buffalo. But you can have fresh produce and meat.
Plan ahead, go to the store just once a week. Measure meats 3oz per person, cut those new yorks in half, thirds for those giant chicken breasts. Buy only the produce you will use in a week, how much do you throw out? Soup is a great way to use veggies a little past their crunch date. Scratch is cheaper, remember it takes 2 boxes of hamburger helper to feed a family. Make big meals on days off then freeze to use as heat up over the week. Use leftovers instead of tossing.
I have a family of 5
2, well 3 adults, my oldest is now 18, and 2 more teens at home. Our average monthly grocery bill is $500, and that includes TP, PT, soap, etc. We have salmon and halibut in the freezer along with some venison and moose meat, not every year can provide us with enough to get us through a year, so we purchase buffalo, lamb, chicken, etc. We cook quite healthy and that does include plenty of fresh vegetables.
I think the grocery issue is people purchase so much of the processed, easy meals and food. I spend my Sundays making from scratch, breakfast sandwiches, etc, so no one has to go to McDonalds, we plan out meals and I try to prepare ahead of time on Sunday.
I work 2 full-time jobs, one with the State. My husband works for the state, we have a mortgage, and the usual bills, but we survive just fine. I'd rather live here and pay the higher prices than live down south and worry about other issues. We actually have it pretty good here in Juneau. Go ahead, let me have it. I'm just stating that it can be an affordable place to live, but you may have to work for it and not be lazy!
Happy Fourth of July everyone! Be safe and have fun!
You're Lucky
akangel--You got my thumbs up ;several of us live a similar lifestyle; frugal. There are, however, many who never fish or hunt and haven't enjoyed the bounty that Southeast provides. For them, I suppose fish, crab and meat cost a fortune.It would be nice if there was some local coop to hold and provide low cost seafood throughout the year. Adjusting the sales tax would also help.
@Snagger
That would be nice if that could happen, but I'm sure the power's that be would tax that too.
It is expensive to run our boat, and with not many fish in yet this year, it hasn't been worth it. Oh well, we roll with the punches!
to calypso, persnickity, and countthis
"Being a vegetarian should never be associated with being a revolutionary or being open-minded.
That's a dietary choice.
If someone wants to proliferate the type of ignorance we're supposed to be fighting by thinking that, you're just [fooling] yourself." - immortal technique
The state study took 57 categories into account, more than just the cost of your barley-breakfast and onions.
Your pettiness makes you and your "friends" seem aloof, and closed-minded. Put a REAL name to your posts and maybe real people will listen.
-austino
You're all right!
Hiya all,
After reading all of these posts I've had to conclude that to some extent, all of you are right. I spend around $250-300/week on food here and I'm not a thrift spender nor am I the greatest cook in my household. We are trying to become more thoughtful about what we eat and about how we procure our food but I do agree that the costs here are very high. I think two factors might play into this more than we realize and that is of course the cost of fuel and the replacement of produce farms with ethanol producing (federally subsidized) farms which to me is silly. But without making this post too political the hard questions are... what can we do about it? In the NW Washington area I've noted tons of farmer's markets which include natural/organic and extremely flavorful produce, jams, jellies, honeys all grown locally and sold. Now we're not Poulsbo WA but we do have the capacity to grow our own foods here, some of them anyway and work closer with organizations like Juneau Community Gardens, et all and learn. I think if we educated ourselves more (me included) then perhaps some pressure could be put on the city to help either fund or appropriate land or something to help us become more of a sustainable community. It's silly but if we don't use the ballparks in the winter, can we use ground-based heat exchangers to keep greenhouses warm to grow foods or use some of the hydro to provide power to hydroponics and grow lights? Anyway, just a thought on what we could do locally without depending on that silly Federal Government of ours, I think that's the shift of change that needs to happen.
Comment for Do the Right Thing
Many of us would like to have Native corporation income and public assistance. As it is, most of us pay taxes so others can collect public assistance. And we would like to have been able to provide DNA evidence so that we could receive net operating loss income from the IRS, special minority and Native corporate scholarships, free health care from the BIA, corporate dividends from shares we never had to purchase (and never had to pay the IRS for any windfall when we received the shares), etc. etc. It would be easier to live in Juneau if sometimes we could be the payee instead of always being the payer. Still, we and our dogs get the PFD every year and Obamycare will soon bring free health care to not only all of us but most of Mexico (no one will tell who actually pays for that until after November 6.) And just the other day I was downtown and a fellow who had been drinking traded me the use of his food stamp credit card for $75 cash. I was able to buy over $200 of groceries at Foodland with that card; so that is almost like qualifying for public assistance. Don't worry, that fellow eats at the Glory Hole so he didn't need the SNAP card and was able to use the $75 for something he needed. He offered me a drink but I declined. See you at the parade.
PP after her? big lecture
finally admitted she? spent $50 a week so if she? was a family of 4 she'd? still be above the study's estimate.
I, personally, choose to eat how I want. I dont like the costs and just ignore them just like fuel, gas, and taxes.
Like the rain, if you want to live in Juneau, be prepared to pay for it.
But like some I shop local as a last resort. When I can order online, pay shipping, and still get better quality and cheaper prices well ,,,,,, and the only time I saw customer service around here was when the big box stores were opening and then it only lasted a week.
Add to that a city government that has no idea what fiscal responsibility is and well ,,,,,,,,,,, welcome to Juneau now we have something to put on the sign at the airport and ferry terminal. "Welcome to Juneau, the most expensive City in Alaska where your money means more than your presence"
oh yeah, and I still eat Veal whenever I can.
Or you could be like...
Al Kookesh and get the fish for free and turn around and sell it in his businesses for 100% profit with no repercussions because he claims it is for subsistence purposes.
Meanwhile, restaurants who think they are paying a fair or reasonable price for the same 'subsidized' food, get nailed for thousands of dollars; and since they don't have the same political clout as he does to get over the system, end up suffering.
There are so many things wrong fiscally with this town it's amazing it even still exists.
I once knew a person who was very, very opinionated and prejudiced. Guess what their opinion was for the majority of Juneauites? Yep! You guessed it! Judgmental, opinionated, spoiled rotten brats.
Simply amazing! Keep up the great work Juneau! I'm proud of ya! ;-)