| Index | Birmingham | Michigan | National |
| Cost of living | 146 | 91 | 100 |
| Groceries | 100 | 98 | 100 |
| Health care | 95 | 97 | 100 |
| Housing | 257 | 76 | 100 |
| Transportation | 99 | 96 | 100 |
| Utilities | 99 | 100 | 100 |
| Lifestyle & Entertainment | 99 | 96 | 100 |
| Household Items | 98 | 98 | 100 |
| Education & Childcare | 96 | 95 | 100 |
The cost of living in Birmingham affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Birmingham is 146, which is 46% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.
If you prioritize affordability when seeking a new place to live, Birmingham may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Birmingham falls into this category, which may not align with your preferences for a budget-friendly living environment.
Housing costs are a very significant part of the Birmingham 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 157.3% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
Is Birmingham affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Birmingham, for instance, where the median home price falls 192.2% higher than the national average, and monthly rent rates are 75.7% higher than usual. Additionally, median income levels contribute to the equation, with Birmingham flaunting a median household income of $186,807, 129.7% higher than the national norm.
Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Birmingham, the baseline sales tax rate begins at 6%, and income tax rates start at 4.25%.
Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Birmingham, the utilities index is 0.9% lower 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.
The cost of living data for Birmingham shown above is based on a U.S. average baseline score of 100, making it easier to compare how far your dollar may go from one city to another. Housing uses U.S. Census home price and rental data, while all remaining values are AI-assisted estimates informed by regional pricing, climate, transportation dynamics, and local economic factors. These scores are best used for directional comparisons between cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $243,499 | $20,292 | $5,681 | $7,306 |
| Renters | $134,079 | $11,173 | $3,128 | $4,023 |
| 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. |
| Highland Park, MI | 11,056 | 80 | 20.3% |
| Detroit, MI | 692,044 | 82 | 17.6% |
| Hamtramck, MI | 22,199 | 84 | 16.2% |
| Pontiac, MI | 61,764 | 84 | 16.2% |
| Center Line, MI | 8,398 | 86 | 14.0% |
| Birmingham, MI | 22,003 | 146 | 45.9% |
| City | Population | Cost of Living Index | National Avg. |
| North Bellmore, NY | 22,008 | 153 | 53.5% |
| Arvin, CA | 22,011 | 112 | 11.9% |
| North Plainfield, NJ | 22,015 | 124 | 23.6% |
| Essex, ON | 22,025 | n/a | |
| Mountain House, CA | 21,975 | 180 | 79.7% |
| Birmingham, MI | 22,003 | 146 | 45.9% |
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