Alaska has long been a tourist destination for Americans but only a few have thought of permanently settling in the country’s last frontier. But it has changed now which is mainly because of the incentives the state has to offer. The state has a unique landscape that can be captivating but there is much more on the table for new residents. So, let’s take a look at why people move to Alaska and what to expect if you decide to move to the coldest American state.
Alaska Pays Residents To Stay There
We are sure it would have come as a surprise but it is true that Alaska pays the residents to permanently stay there. The state has established a Permanent Fund Dividend Program which gives royalties to permanent residents every year. The size of these payments can vary between $800 to $1,100. You just have to live in the state permanently to become eligible for this fund.
The Permanent Fund was founded in 1976 to save from the earnings of that state that it gets by selling the state’s natural resources. We understand that it is not a jackpot but it can help a lot of residents in savings for college funds and vacations.
Affordable Real Estate
The cost of living in Alaska can be quite high because most of the goods have to be shipped from faraway locations. But the housing market remains surprisingly affordable. In 2022, the median price of a house in listings is around $339,000. The median prices of big cities like Fairbank, Wasilla, and Kenai are $270,000, $339,900, and $250,000 respectively.
Cost of Living
The cost of living in Alaska can be discouraging to the new residents because of the perception that is built by the media. In reality, the cost of living in Alaska is comparable to metropolitans like New York, San Francisco, and Honolulu. Mind you none of these cities provide the same incentives as Alaska to live there.
Income and Sales Tax
Another factor that compensates for the relatively high cost of living is the lowest tax rates. Alaska residents are not subjected to state income tax and the sales tax is also exempted. Property taxes are applicable but those are also not too high. Residents can save a lot because of this tax exemption which makes up for the extra grocery prices they have to pay. Furthermore, the yearly dividend fund also helps in this regard.
Frankly, the job opportunities in Alaska are not as great as in some other parts of the country. But it can be a great place for individuals that have remote work. Alaska has a 5G network that enables professionals to do their jobs without experiencing interruption. Furthermore, some cities are also investing in the fiber network which will increase the internet speeds even more.
While living in Alaska, you do not have to pack a bag or take a flight to go on an adventure. It is a land of adventure and there are tons of things that residents can enjoy. You just have to step out of the house and drive for a few minutes to experience nature at its pristine.