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Average Cost Of Living In Michigan And Breakdown By City

Carey Chesney4-Minute Read
December 04, 2020

When it comes to the cost of living in Michigan, a lot of factors come together to show why it’s such a great – and affordable – place to live. Sand dunes leading into the Great Lakes, incredible wooded trails, vibrant urban centers and epic sunsets are hard to put a dollar value on, but there are a number of other categories we can monetize and review to show you why it makes financial sense to move to Michigan.

Cost Of Living Defined

To put it simply, cost of living is the amount of money needed to cover basic expenses such as housing, food and health care in a certain place and time period. Let’s summarize and explain the key factors that go into determining cost of living.

  • Housing: How expensive the average home costs, what most people pay for monthly rent, property taxes, etc.
  • Groceries: The average cost of a number of grocery staples (coffee, sugar, bread, potatoes, etc.).
  • Health: The average costs of health care services as well as the availability of those services.
  • Transportation: Access to affordable public and private transportation.

Average Cost Of Living In Michigan

Keep in mind that the cost of living index we are discussing is based on a national average score of 100. Michigan has a pretty low cost of living overall, coming in at 89, which means the cost of living in Michigan is 11% below the national average.

The Stats:

  • Median home price: $151,400
  • Median household income: $49,087
  • Groceries: 93.4 Cost of Living Index Score
  • Health: 86 Cost of Living Index Score
  • Transportation: 115.1 Cost of Living Index Score

Cost Of Living In Michigan By City

Now that you have a snapshot of the state, let’s take a closer look at some of the top real estate cities in Michigan.

Ann Arbor

Home to the University of Michigan, Ann Arbor is one of Michigan’s most desirable cities. In fact, it is often mentioned on lists compiling the best places to live in the country.

The Stats:

  • Overall Cost of Living Score: 117.5
  • Median Home Price: $379,600
  • Median Income: $56,835
  • Groceries: 102.6 Cost of Living Index Score
  • Health: 86 Cost of Living Index Score
  • Transportation: 115.1 Cost of Living Index Score

Ann Arbor Real Estate Listings

Ann Arbor Trend Report

Detroit

The largest city in Michigan sits on the Detroit River and represents a buzzing metropolis full of action. Known for its rich musical and automotive history, Detroit is often referred to as The Motor City or Motown.

The Stats:

  • Overall Cost of Living Score: 87.6
  • Median Home Price: $53,700
  • Medium Income: $26,095
  • Groceries: 89 Cost of Living Index Score
  • Health: 84.3 Cost of Living Index Score
  • Transportation: 178.3 Cost of Living Index Score

Detroit Real Estate Listings

Detroit Trend Report

 

West Bloomfield

Located in southeast Michigan, West Bloomfield is sometimes referred to as the “lake township of Oakland County” due to its abundance of small and medium-sized lakes.

The Stats:

  • Overall Cost of Living Score: 116.5
  • Median Home Price: $318,300
  • Median Income: $90,317
  • Groceries: 100.5 Cost of Living Index Score
  • Health: 81.4 Cost of Living Index Score
  • Transportation: 125 Cost of Living Index Score

West Bloomfield Real Estate Listings

West Bloomfield Trend Report

Grand Rapids

The second-largest city in Michigan, Grand Rapids is located in the west central part of the state, roughly 30 miles east of Lake Michigan.

The Stats:

  • Overall Cost of Living Score: 87.8
  • Median Home Price: $164,900
  • Medium Income: $39,913
  • Groceries: 95.2 Cost of Living Index Score
  • Health: 83.4 Cost of Living Index Score
  • Transportation: 95.1 Cost of Living Index Score

Grand Rapids Real Estate Listings

Grand Rapids Trend Report

Royal Oak

Developed as a suburb of Detroit in the early 20th century following Detroit's booming growth in the auto industry, Royal Oak is often referred to as “the city of trees.”

The Stats:

  • Overall Cost of Living Score: 104.6
  • Median Home Price: $247,100
  • Medium Income: $64,873
  • Groceries: 98.4 Cost of Living Index Score
  • Health: 81.4 Cost of Living Index Score
  • Transportation: 113.9 Cost of Living Index Score

Royal Oak Real Estate Listings

Royal Oak Trend Report

Holland

Situated near the eastern shore of Lake Michigan on Lake Macatawa, tulips and sandy beaches contribute to Holland’s small-town charm.

The Stats:

  • Overall Cost of Living Score: 90.6
  • Median Home Price: $198,400
  • Medium Income: $44,619
  • Groceries: 95.6 Cost of Living Index Score
  • Health: 87.1 Cost of Living Index Score
  • Transportation: 87.8 Cost of Living Index Score

Holland Real Estate Listings

Holland Trend Report

Dearborn

Considered part of the Detroit metropolitan area, Dearborn is the eighth-largest city in the state.

The Stats:

  • Overall Cost of Living Score:
  • Median Home Price: $142,700
  • Medium Income: $46,776
  • Groceries: 95.1 Cost of Living Index Score
  • Health: 84.3 Cost of Living Index Score
  • Transportation: 149.7 Cost of Living Index Score

Dearborn Real Estate Listings

Dearborn Trend Report

Canton

Known as the "Sweet Corn Capitol of Michigan," Canton is nestled equidistant between Detroit and Ann Arbor.

The Stats:

  • Overall Cost of Living Score: 108.1
  • Median Home Price:$270,900
  • Medium Income: $82,243
  • Groceries: 99.2 Cost of Living Index Score
  • Health: 84.3 Cost of Living Index Score
  • Transportation: 125.8 Cost of Living Index Score

Canton Real Estate Listings

Canton Trend Report

Lansing

Home to the state capitol, Lansing is situated on the banks of Michigan's Grand River.

The Stats:

  • Overall Cost of Living Score: 76.5
  • Median Home Price: $86,300
  • Medium Income: $35,675
  • Groceries: 91.1 Cost of Living Index Score
  • Health: 83.6 Cost of Living Index Score
  • Transportation: 94.8 Cost of Living Index Score

Lansing Real Estate Listings

Lansing Trend Report

Sterling Heights

With a dense suburban feel, Sterling Heights is the second largest suburb in Metro Detroit and the fourth-largest city in Michigan.

The Stats:

  • Overall Cost of Living Score: 101.4
  • Median Home Price: $209,600
  • Medium Income: $58,800
  • Groceries: 96.9 Cost of Living Index Score
  • Health: 82.1 Cost of Living Index Score
  • Transportation: 132.3 Cost of Living Index Score

Sterling Heights Real Estate Listings

Sterling Heights Trend Report

The Bottom Line On Michigan Cost Of Living

To sum it up, the Great Lakes State is a ... well ... great place to live when it comes to cost of living. Looking to relocate to Michigan? You can start your search by working with a Rocket HomesSM Verified Partner Agent.

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    Carey Chesney

    Carey Chesney brings a wealth of real estate sales and marketing experience to his buyers and sellers as they navigate highly competitive markets. Carey and his wife Ilze work together as Realtors® in Michigan.