Thinking about moving to Michigan? In the Great Lake State, there’s plenty to love – enjoying the lakes and the beautiful scenery that comes with it. But when it comes to cost, Michigan presents its own financial landscape, from varying housing prices in bustling cities to affordable options in smaller towns. Living here also means accounting for essentials like utility costs during Michigan’s cold winters and car expenses, as public transportation is limited in many areas. In this guide, we’ll dive into Michigan’s cost of living, covering everything from typical rental rates and tax structures to daily expenses like groceries, healthcare, and commuting.
Housing costs: Median home prices and average rent in Michigan
Housing costs in Michigan are relatively affordable compared to national averages, with the average rent at $1,185, significantly lower than the national average of $1,645. The median home sale price is $266,000, though prices vary widely across the state. In cities like Ann Arbor and Traverse City, housing tends to be more expensive due to their desirable locations and strong educational and cultural appeal. Meanwhile, Detroit offers more affordable housing options, with both rental and purchase prices lower than in other large metro areas. Smaller cities like Lansing and Grand Rapids provide a middle ground, combining a reasonable cost of living, while rural areas and towns in the Upper Peninsula often offer even more budget-friendly options.
Michigan housing costs: Average rents and median home sale prices
| City in Michigan | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $439,000 |
| Detroit | $1,690 | $2,182 | $91,000 |
| Grand Rapids | $1,669 | $1,900 | $280,000 |
| Ann Arbor | $1,902 | $2,050 | $425,000 |
| Lansing | $980 | $1,262 | $135,000 |
| Flint | $937 | $971 | $66,750 |
| Kalamazoo | $1,088 | $1,292 | $181,500 |
| Traverse City | $1,995 | $2,650 | $490,000 |
| Marquette | $850 | $1,300 | $170,000 |
| Pontiac | $915 | $1,050 | $155,000 |
| Southfield | $1,160 | $1,472 | $229,000 |
Housing costs in popular cities in Michigan
Detroit
Detroit, known as the Motor City, offers a lifestyle filled with history, art, and a thriving music scene. The average rent for a one-bedroom apartment is $1,690, while a two-bedroom typically rents for around $2,182. With a median home sale price of just $91,000, Detroit is one of Michigan’s most affordable cities for homebuyers. Renters can expect to find loft-style apartments in renovated historic buildings, along with newer options in bustling neighborhoods.
Read more: Should I Move to Detroit? 11 Pros and Cons
Grand Rapids
Grand Rapids is a growing city known for its breweries, outdoor activities, and flourishing art scene. With an average rent of $1,669 for a one-bedroom and $1,900 for a two-bedroom, housing costs here are slightly above the state average, reflecting the city’s increasing popularity. Renters can expect a mix of downtown apartments and suburban-style homes, depending on the neighborhood.
Ann Arbor
Home to the University of Michigan, Ann Arbor is a bustling college town with academic and cultural energy. The average rent for a one-bedroom apartment is $1,902, and two-bedroom rentals go for about $2,050. With a median home sale price of $425,000, Ann Arbor is one of Michigan’s priciest housing markets, driven by strong demand.
Lansing
As Michigan’s capital, Lansing combines government, education, and affordable living, creating a relaxed yet lively atmosphere. Renters here can find a one-bedroom for an average of $980, and two-bedrooms for around $1,262, making it an affordable option compared to other major cities in the state. Additionally, the median home sale price sits at $135,000, making Lansing attractive to first-time homebuyers.
Utility costs are below the national average
In Michigan, utility costs remain below the national average, with residents paying about $592.96 monthly, compared to the national average of $609.90. Gas averages around $90.50 per month, especially during the colder months when heating demands rise. Water bills are relatively low, averaging around $29.00 monthly, contributing to Michigan’s affordable utility profile. Despite the need for heating in winter and air conditioning in the humid summer, Michigan’s utility costs are generally manageable, thanks to access to natural gas and relatively low water rates.
Energy bill comparisons: Michigan cities vs. nationwide average
| Monthly Energy Bill | Monthly Phone Bill | Comparison to National Avg. | |
| National Average | $200.07 | $193.54 | |
| Detroit | $192.79 | $185.86 | -4% less |
| Grand Rapids | $197.23 | $185.20 | -3% less |
| Ann Arbor | $225.79 | $136.81 | -5% less |
| Lansing | $251.06 | $136.81 | +3% more |
| Flint | $212.16 | $190.40 | +3% more |
| Kalamazoo | $206.95 | $185.86 | +1% more |
| Marquette | $195.87 | $190.59 | -3% less |
Data from Redfin’s Cost of Living Calculator, November 2024
Expect to pay less for groceries in Michigan
Grocery prices in Michigan are generally more affordable, with residents spending around 8% less than the national average. This makes it easier for households to manage food expenses while enjoying access to fresh local produce, especially from Michigan’s well-known agriculture industry. Prices for staples like milk, bread, and eggs are consistently lower than in many other states, and the abundance of farmers’ markets throughout Michigan provides fresh, seasonal produce at competitive prices.
Driving a car comes with a hefty price
Transportation costs in Michigan are comparable to the national average, with the price of gas currently at $3.11 per gallon, matching the national average. However, one of the biggest financial challenges for Michigan residents is car insurance, which is among the highest in the country due to the state’s no-fault insurance system. Despite recent reforms aimed at reducing rates, drivers still face relatively high premiums. Additional transportation costs, such as vehicle maintenance and parking, particularly in urban areas like Detroit, can also add to overall expenses.
Healthcare costs near national averages
Healthcare costs in Michigan are generally in line with the national average, but expenses can vary widely depending on location, insurance coverage, and personal needs. For instance, a typical dentist visit in Michigan costs around $115.50, which is close to the national average, but this can rise depending on the city. In Detroit, a dental appointment may run closer to $124, while in Grand Rapids, it could be around $120. Doctor visits also vary—nationally, the average is about $140.46, but in Michigan cities like Lansing, the cost tends to be closer to $135. Larger cities like Ann Arbor may see doctor’s visits averaging closer to $208 or more, especially for specialists.
Michigan’s tax structure features low income tax and moderate property rates
Michigan has a relatively straightforward tax structure, but it can still impact residents’ finances. The state has a flat income tax rate of 4.25%, which is relatively low compared to other states, making it attractive for many workers. In addition to the income tax, Michigan levies a 6% state sales tax on most goods and services, which is fairly standard for the region. Property taxes in Michigan are also relatively moderate, with an average effective rate of around 1.24%, which is higher than the national average of 0.99%.
How much do I need to earn to live in Michigan?
To live comfortably in Michigan, the 30% rule suggests spending no more than 30% of your gross income on housing. The average rent for a one-bedroom apartment in Michigan is around $1,185 per month, with higher costs in cities like Ann Arbor, where rents can reach $1,900 or more. In Detroit, the average rent for a one-bedroom apartment is $1,690 per month, which means you’d need to earn at least $5,633 per month, or about $67,600 annually, to keep your housing costs within that 30% threshold.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
