Some place-to-place comparisons
each with different results
There are different studies available to compare
living costs between places. Due primarily to
methodology differences, each survey shows a
different result when comparing living costs between
locations.
One available cost-of-living measurement is the
University of Alaska's Cost of Food at Home Study.
It measures the cost to feed various size families in
different locations in Alaska. The food basket
provides a minimum level of nutrition to an individual
or family at the lowest possible cost. The
report also contains comparative information on
some utility and fuel costs. One of its strengths is
wide geographic coverage of Alaska over a relatively
long period of time. For many years, the Cost
of Food at Home Study has provided a comparative
measure for Alaskan locations that no other
cost survey covers. Its primary weakness is that it
only measures a limited number of food items and
some utility costs. Food and utility costs alone can't
provide a complete measurement of cost-of-living
differences.
Comparing living costs between Alaska communities
is complicated by several factors. Some goods
and services available in urban areas are not
readily available in rural areas. The buying habits
of urban residents can differ dramatically from
those of rural residents, a variance which can
confuse cost-of-living comparisons. The contributions
of subsistence to a household food budget
can also complicate cost-of-living comparisons.
The Cost of Food at Home Study assumes that all
foods are purchased in the local community, and
none is acquired through subsistence means or
from merchants outside of the community.
Food costs are higher in rural Alaska
Table 3 shows weekly food costs in 13 communities
for a family of four, with the children of
elementary-school ages. The December 1997
figures showed that Fairbanks had the lowest food
costs of the areas surveyed, followed by Anchorage,
Juneau, Kenai, and Ketchikan. The survey has
consistently shown that larger cities in Alaska have
food costs fairly comparable to those in Anchorage.
Overall, food costs tend to have three tiers in
Alaska. The largest urban areas have the lowest
food costs. Smaller communities on a major distribution
system, like a road or the Alaska Marine
Highway, tend to have slightly higher costs than
the urban areas. The Cost of Food at Home Study
has consistently shown that the highest food costs
are found in isolated communities supplied primarily
by air. In places such as Bethel, Dillingham
and Naknek, food costs are 50 to 75 percent
higher than in Anchorage. Although the Cost of
Food at Home Study does not extensively survey
remote villages, these areas tend to have even
higher costs than the regional centers that are only
serviced by air.