A+
9%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
37%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Traverse City Michigan National
Cost of living10989100
Goods & Services9593100
Groceries9899100
Health care9593100
Housing13774100
Transportation9997100
Utilities98101100

An Overview of Cost of Living in Traverse City, MI

Getting a feel for the cost of living in Traverse City is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Traverse City is 109, which is 9% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Traverse City aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Traverse City residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Housing costs are a very significant part of the Traverse City cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 36.6% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Traverse City?

The most insightful perspective on a city comes from its residents. We recently surveyed 6 locals to gauge their perception of the cost of living in Traverse City. The feedback revealed that 0% of respondents found the cost of living to be reasonable, with prices on the decline, while 100% regarded it as notably expensive with prices that continue to rise.

Is Traverse City Affordable?

Is Traverse City affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Traverse City, the median home price is 53.2% higher than the national average and monthly rent prices are 2% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Traverse City boasting a median household income of $61,056, 10.4% higher than the national average.

What Factors can Influence the Cost of Living in Traverse City?

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Traverse City, the housing index is 36.6% higher than the national average.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

Where is the Data From?

The Traverse City cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Traverse City is 22% higher than the Michigan average
  • The cost of living in Traverse City is 9% higher than the national average
  • Traverse City housing is 37% higher than the national average
  • Michigan general sales tax is 18% higher than the national average
  • Michigan state income tax is 64% higher than the national average

Most Affordable Places to Live in and Around Traverse City

See all the best places to live around Traverse City

Compare Traverse City, MI Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$86,250$7,188$2,012$2,588
      Renters$31,439$2,620$734$943
      To approximate the cost of living and the housing affordability in Traverse City, MI, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Traverse City have a median income of $86,250. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,012 per month to avoid calamity and poverty. The renters in the city have an income of about $31,439, which would make their monthly maximum allowable rental costs $734.

      Michigan Sales Tax

      State General Sales Tax With Max Surtax
      Michigan 6% 6%

      Michigan Income Tax

      State Income Tax (Low) Income Tax (High)
      Michigan 4.25% 4.25%

      Goods & Services

      Item Traverse City National avg. Difference
      Haircut $20.11$24.2617.1%
      Beauty Salon $30.55$45.5632.9%
      Toothpaste $3.73$3.700.7%
      Shampoo $1.29$1.281.0%
      Movie $14.24$12.1317.4%
      Bowling $17.83$18.000.9%

      Groceries

      Item Traverse City National avg. Difference
      Ground Beef $6.10$5.844.4%
      Fried Chicken $1.42$1.579.5%
      Milk $4.73$4.671.3%
      Potatoes $4.35$4.9311.9%
      Pizza $10.54$12.0912.8%
      Beer $8.87$10.4114.8%

      Health Care

      Item Traverse City National avg. Difference
      Optometrist $78.75$125.6837.3%
      Doctor $157.90$135.7816.3%
      Dentist $104.06$113.298.1%
      Ibuprofen $10.58$10.650.7%
      Lipitor $357.09$468.6023.8%

      Housing

      Item Traverse City National avg. Difference
      Home Price $282,900.00$184,700.0053.2%
      Avg. Mortgage Payment $2,027.96$2,346.6913.6%
      Apartment Rent $930.00$949.002.0%

      Transportation

      Item Traverse City National avg. Difference
      Gasoline $3.32$3.464.2%
      Tire Balancing $63.04$59.925.2%

      Utilities

      Item Traverse City National avg. Difference
      All Electricity $191.22$193.991.4%
      Phone $185.40$192.253.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Bendon, MI1668514.9%
      Cedar, MI958613.8%
      Grawn, MI9338712.9%
      Fife Lake, MI3158911.2%
      Maple Grove, MI1949010.4%
      Traverse City, MI15,5251098.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Groves, TX15,531936.8%
      The Dalles, OR15,5181088.4%
      Longwood, FL15,5141066.3%
      Middleburg Heights, OH15,514945.5%
      Asbury Park, NJ15,53614140.6%
      Traverse City, MI15,5251098.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.