Cost of Living in Kotzebue, AK

With a cost of living index of 107, Kotzebue, AK is somewhat more expensive than average. Living here is 7% more expensive than the national average and 17% above the Alaska state average of 90. Kotzebue is a small community of 3,046 residents.

Housing costs are the biggest factor in Kotzebue's cost of living. The median monthly rent is $1,610 (22% above the US median of $1,319), and the median home value sits at $264,500 (13% below the national median of $304,900). At current prices, the median home costs roughly 2.5x the median household income — well within traditional affordability guidelines.

The median household income in Kotzebue is $106,328, which is 41% higher than the national median of $75,149. Residents spend roughly 18% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Climate is another factor for anyone considering a move to Kotzebue. The area sees an average annual temperature of 24°F, with summers averaging 52°F and winters around 1°F. Annual rainfall totals 11.4 inches spread over roughly 113 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.