A+
8%
Overall NAT. AVG.
10%
Goods & Services NAT. AVG.
11%
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 Grand Rapids Michigan National
Cost of living9289100
Goods & Services9093100
Groceries9599100
Health care9493100
Housing8974100
Transportation9597100
Utilities102101100

An Overview of Cost of Living in Grand Rapids, MI

Are you thinking about relocating, but curious about the potential cost of living in Grand Rapids? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Grand Rapids stands at 92, making it 8% lower 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.

Everyday expenditures like food, housing, goods and services, transportation and health care in Grand Rapids are priced in a manner consistent with other areas. This means that residents of Grand Rapids can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

What Do Locals Say About the Cost of Living in Grand Rapids?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 22 locals to understand their opinions on the cost of living in Grand Rapids. The results indicated that 32% found it reasonably priced with decreasing prices of goods and services, while 68% viewed it as quite expensive, with increasing prices.

Is Grand Rapids Affordable?

Wondering if Grand Rapids is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Grand Rapids, for example, the median home price is 15.3% lower than what folks pay nationally, and monthly rent is 0.2% lower than the usual rates. Plus, income levels matter too, with Grand Rapids boasting a median household income of $51,333, which is 7.2% lower than the national average.

What Factors can Influence the Cost of Living in Grand Rapids?

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 Grand Rapids, the baseline sales tax rate begins at 6%, and income tax rates start at 4.25%.

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 Grand Rapids, the housing index comes in at 10.8% lower than the national average.

Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In Grand Rapids, healthcare costs are 6.2% lower than the national average.

Where is the Data From?

The cost of living data in Grand Rapids displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Grand Rapids is 3% higher than the Michigan average
  • The cost of living in Grand Rapids is 8% lower than the national average
  • Grand Rapids housing is 11% lower 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 Grand Rapids

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Compare Grand Rapids, 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$68,283$5,690$1,593$2,049
      Renters$35,004$2,917$817$1,050
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Grand Rapids, MI, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Grand Rapids, homeowners have a median income of $68,283. Using that number, a maximum of $1,593 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $35,004, which means there is a maximum of $817 to be spent on the costs of renting a home or apartment.

      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 Grand Rapids National avg. Difference
      Haircut $24.53$24.261.1%
      Beauty Salon $56.27$45.5623.5%
      Toothpaste $3.64$3.701.8%
      Shampoo $1.40$1.289.1%
      Movie $11.22$12.137.5%
      Bowling $22.17$18.0023.1%

      Groceries

      Item Grand Rapids National avg. Difference
      Ground Beef $5.51$5.845.7%
      Fried Chicken $1.69$1.577.7%
      Milk $4.84$4.673.6%
      Potatoes $4.77$4.933.3%
      Pizza $10.99$12.099.1%
      Beer $9.38$10.419.9%

      Health Care

      Item Grand Rapids National avg. Difference
      Optometrist $91.40$125.6827.3%
      Doctor $139.14$135.782.5%
      Dentist $120.35$113.296.2%
      Ibuprofen $10.88$10.652.1%
      Lipitor $504.80$468.607.7%

      Housing

      Item Grand Rapids National avg. Difference
      Home Price $156,500.00$184,700.0015.3%
      Avg. Mortgage Payment $2,520.64$2,346.697.4%
      Apartment Rent $947.00$949.000.2%

      Transportation

      Item Grand Rapids National avg. Difference
      Gasoline $3.42$3.461.2%
      Tire Balancing $60.57$59.921.1%

      Utilities

      Item Grand Rapids National avg. Difference
      All Electricity $180.47$193.997.0%
      Phone $184.98$192.253.8%
      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.
      Sparta, MI4,3908812.3%
      Wyoming, MI75,9999010.4%
      Coopersville, MI4,388909.8%
      Cutlerville, MI17,988928.1%
      Comstock Park, MI10,659928.0%
      Grand Rapids, MI199,417927.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Glendale, CA199,35719190.5%
      Aurora, IL199,3261055.2%
      Amarillo, TX199,2258910.9%
      Huntington Beach, CA199,77818787.4%
      Montgomery, AL199,0548812.2%
      Grand Rapids, MI199,417927.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.