Alaska, a state of immense size and natural beauty, is larger than many major world powers, including the United Kingdom, Germany, Japan, and France combined. Despite its enormous size, Alaska has a small population of only 736,000 residents. In this article, we’ll explore the reasons behind this unique combination of size and population, focusing on Alaska’s history, geography, climate, and economy.
Alaska’s History and Statehood
The modern history of Alaska began when the United States purchased it from Russia for $7.2 million in 1867. Initially known as the Territory of Alaska, it gained statehood on January 3, 1959, along with Hawaii, becoming the 49th and 50th U.S states respectively.
Significant events in Alaska’s early history include the discovery of gold in 1880, the incorporation of Juno in 1900, Fairbanks in 1903, and the founding of Anchorage in 1915. Further milestones include the creation of Denali National Park in 1917, the completion of the Alaskan Railroad in 1923, and the construction of the Alaska Highway System in 1942.
The Role of Oil in Alaska’s Development
The discovery of oil in Alaska in 1957, two years before it became a U.S state, permanently altered the state’s role in American society. Oil deposits were quickly found across Alaska, solidifying its position as a hotspot for one of the most important natural resources in modern times.
The Trans-Alaskan Pipeline, completed in 1977, facilitated the transport of oil between Alaska and the lower 48 states. This development coincided with the rising popularity of internal combustion engines, further cementing Alaska’s importance in the American economy.

The Challenges of Alaska’s Geography and Climate
One of the primary reasons for Alaska’s small population is its challenging geography and climate. Alaska is brutally cold and mountainous, with harsh topography that’s often frozen and difficult to traverse. The state has an average temperature range of 0 to -30 degrees Fahrenheit from November to March and is home to 17 of the 20 tallest mountain peaks in the United States.
In addition, Alaska’s location in one of the northernmost major settlements in the world, coupled with its separation from the rest of the United States, has limited its population growth. The state’s vast land mass is also largely owned by the government, corporate interests, or is unusable due to geographic complications.
Alaska’s Economy and Incentives for Residents
Despite its small population, Alaska offers its residents and businesses significant financial incentives. It is one of only eight U.S states without an individual income tax, and the Alaska Permanent Fund pays residents a portion of the state’s excess annual oil revenues.
Alaska has a comfortable median household income of about $80,000 and a modest median home price of $338,000. The state’s economy is driven by tourism, oil and gas, construction, and real estate, with a total GDP of nearly $50 billion and the nation’s sixth-highest per capita GDP of nearly $70,000.

The Appeal of Alaska’s Natural Beauty and Culture
The state’s uniquely beautiful nature, open spaces, and focus on personal freedom attract many residents to Alaska. The state’s culture is rugged and individualistic, with an emphasis on nature and recreation. However, the harsh and lengthy winters, difficult topography, and remoteness of Alaska also contribute to its limited population growth.
Conclusion
In conclusion, the state of Alaska’s immense size and surprisingly small population can be attributed to its history, geography, climate, and economy.
I was born in Alaska while it was a US territory. I still live here and I’m glad its population is small compared to its size. It changed a lot during the oil boom in the late 60s/early 70s. It takes a special breed of individual to enjoy living here.
I’ve been in Anchorage for a little less than a year now. The dark is incredibly depressing in that it sucks all the energy out of your body. To not be able to see the sun until 11:00 a.m. is much harder than you think. That said, I actually really enjoy the snow and cold, as someone who grew up in the desert. It is simply the most beautiful place in the world. It is unbelievably gorgeous to drive around and catch glimpses of the ocean or to see the mountains covered in snow. The random moose sightings in town. The aurora. There is an individualistic culture, but you would get the sense that we’re all in this together. We’re all outside shoveling snow, wearing our Xtra tuffs, carrying bear spray in the summer. There’s no artifice, everybody is weird and nobody pretends to not be. It’s truly unique.
I came to Alaska in 1972. I was 20 years old. I had no interest in Alaska, but back then there was some easy money to make and I figured I’d make it and go back to the states. I fell in love with it the first day I was there and have been here ever since. Too many adventures and a life history that makes people’s jaws drop. And I’m just an everyday Alaskan.
It’s the best place. Ever.
Alaska is wild and beautiful, and honestly it should stay that way. Luckily it seems cold enough to keep it that way for at least another handful of decades.
One of my dream is to visit Alaska and stay there for a week.