| Index | Ann Arbor | Michigan | National |
| Cost of living | 120 | 91 | 100 |
| Groceries | 99 | 98 | 100 |
| Health care | 100 | 97 | 100 |
| Housing | 171 | 76 | 100 |
| Transportation | 93 | 96 | 100 |
| Utilities | 96 | 100 | 100 |
| Lifestyle & Entertainment | 103 | 96 | 100 |
| Household Items | 96 | 98 | 100 |
| Education & Childcare | 102 | 95 | 100 |
Are you thinking about relocating, but curious about the potential cost of living in Ann Arbor? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Ann Arbor stands at 120, making it 20% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
If you're in pursuit of an economical living environment, Ann Arbor may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Ann Arbor falls within this bracket.
Housing costs make up a big chunk of the cost of living in Ann Arbor, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 71.3% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
The most insightful perspective on a city comes from its residents. We recently surveyed 29 locals to gauge their perception of the cost of living in Ann Arbor. The feedback revealed that 52% of respondents found the cost of living to be reasonable, with prices on the decline, while 48% regarded it as notably expensive with prices that continue to rise.
Is Ann Arbor an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Ann Arbor, the median home price is 87.7% higher than what most folks pay across the country, and monthly rent prices are 33.2% higher than the usual rates. Income levels in Ann Arbor come in at $103,170, which is 26.8% higher than the national average.
Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Ann Arbor, the utilities index registers at 3.9% lower than the national average.
Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Ann Arbor, the housing index comes in at 71.3% higher than the national average.
Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Ann Arbor, the groceries index is 0.7% lower than the national average.
The Ann Arbor cost of living estimates above use a normalized U.S. average of 100 as the baseline for comparison. Housing values incorporate local home price and rental information from the U.S. Census, while all other estimates are AI-assisted and modeled using expected everyday expenses, local market trends, climate, and transportation-related cost pressures. The results are intended for practical city-to-city comparisons.
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| Groceries index | |
| Health care index | |
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| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $179,063 | $14,922 | $4,178 | $5,372 |
| Renters | $64,926 | $5,411 | $1,515 | $1,948 |
| State | General Sales Tax | With Max Surtax |
| Michigan | 6% | 6% |
| State | Income Tax (Low) | Income Tax (High) |
| Michigan | 4.25% | 4.25% |
| City | Population | Cost of Living Index | National Avg. |
| Clinton, MI | 2,995 | 91 | 8.5% |
| Belleville, MI | 4,027 | 93 | 7.3% |
| Ypsilanti, MI | 21,227 | 94 | 5.5% |
| Milan, MI | 6,205 | 97 | 2.7% |
| Pinckney, MI | 2,199 | 99 | 1.4% |
| Ann Arbor, MI | 125,691 | 120 | 20.2% |
| City | Population | Cost of Living Index | National Avg. |
| Odessa, TX | 125,590 | 98 | 1.7% |
| Saanich, BC | 125,800 | n/a | |
| Columbia, MO | 125,431 | 100 | 0.1% |
| Hartford, CT | 125,397 | 106 | 5.6% |
| Victorville, CA | 126,104 | 122 | 22.5% |
| Ann Arbor, MI | 125,691 | 120 | 20.2% |
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