A+
18%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
62%
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 Highland Park Michigan National
Cost of living8289100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing3874100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Highland Park, MI

Understanding the cost of living in Highland Park can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Highland Park cost of living index is 82, which is 18% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, Highland Park distinguishes itself by reporting housing expenses that are 62.5% below the national average. This indicates that both owning a home and renting in this area are notably more budget-friendly compared to the rest of the nation. With such favorable housing affordability, residents of Highland Park can allocate more of their income to housing, enhancing their financial flexibility.

Is Highland Park Affordable?

Wondering if Highland Park 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 Highland Park, for example, the median home price is 72.8% lower than what folks pay nationally, and monthly rent is 38.4% lower than the usual rates. Plus, income levels matter too, with Highland Park boasting a median household income of $20,666, which is 62.6% lower than the national average.

What Factors can Influence the Cost of Living in Highland Park?

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Highland Park, the housing index stands at 62.5% lower than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

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

Where is the Data From?

The cost of living in Highland Park, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Highland Park is 8% lower than the Michigan average
  • The cost of living in Highland Park is 18% lower than the national average
  • Highland Park housing is 62% 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 Highland Park

See all the best places to live around Highland Park

Compare Highland Park, 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$43,078$3,590$1,005$1,292
      Renters$12,511$1,043$292$375
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Highland Park, MI, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Highland Park homeowners, is $43,078. This would allow for a maximum of $1,005 per month to be spent on housing costs. For renters, the median monthly income is $12,511 which would result in a maximum of $292 to be spent on rental costs.

      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 Highland Park National avg. Difference
      Haircut $16.80$24.2630.8%
      Beauty Salon $24.78$45.5645.6%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.13$1.2811.8%
      Movie $12.99$12.137.1%
      Bowling $12.33$18.0031.5%

      Groceries

      Item Highland Park National avg. Difference
      Ground Beef $5.75$5.841.5%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.78$4.672.3%
      Potatoes $4.80$4.932.8%
      Pizza $8.99$12.0925.6%
      Beer $9.04$10.4113.2%

      Health Care

      Item Highland Park National avg. Difference
      Optometrist $85.00$125.6832.4%
      Doctor $103.33$135.7823.9%
      Dentist $91.00$113.2919.7%
      Ibuprofen $10.22$10.654.1%
      Lipitor $490.11$468.604.6%

      Housing

      Item Highland Park National avg. Difference
      Home Price $50,200.00$184,700.0072.8%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $585.00$949.0038.4%

      Transportation

      Item Highland Park National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Highland Park National avg. Difference
      All Electricity $219.20$193.9913.0%
      Phone $184.44$192.254.1%
      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.
      River Rouge, MI7,4658019.9%
      Ecorse, MI9,4568316.8%
      Detroit, MI672,3518415.5%
      Inkster, MI24,3988515.1%
      Hamtramck, MI21,7048614.3%
      Highland Park, MI10,8188218.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Montgomery, OH10,81812626.4%
      Rockport, TX10,8151000.2%
      La Tuque, QC10,815n/a 
      Burtonsville, MD10,81213737.4%
      Totowa, NJ10,81012929.3%
      Highland Park, MI10,8188218.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.