Michigan is a special state. It’s not too big and not too small, yet four great lakes touch it. You can get to Lake Superior, Lake Michigan, Lake Huron and Lake Erie all without crossing a state border. That spells out plenty of water-based, outdoor activity for sure, but that’s only one feature of this affordable state.
Michigan’s cost of living is relatively reasonable, with plenty of pockets geared toward those working with a smaller budget. Basically, you have options when eyeing Michigan as your next home, but to make sure everything adds up, let’s look at the data.
By examining the averages within a variety of cost of living categories, you can get an idea of the real dollars and cents you need to call Michigan home. Will your budget stand up? Let’s check these categories out:
Michigan housing prices
The cost of living in Michigan for housing hit every point on the grid. You’ll find areas that slightly exceed the national average, come in a bit under and hit way below. That means there’s housing for everyone, at an affordable price point.
Detroit
Still rebounding from the hit it took during the last recession, Detroit today is all about small, tight-knit communities that give the area a welcoming feel. Housing prices are 5.1 percent above the national average, but there are plenty of classy fixer-uppers waiting for someone who wants a project.
Steeped in music and art, it’s not known as Detroit Rock City for nothing. And, as the home of Motown, this rich component to an overall intricate city history makes Detroit a great place to live.
Apartments in Detroit are actually seeing a downturn in pricing. One-bedroom apartments are down 7 percent over last year, with an average monthly rent of $1,195. Two-bedroom apartments are down even more, 18 percent over last year, with an average monthly rent of $1,575.
Home prices, on the other hand, are up 28.4. percent over last year. However, the median sale price of $95,000 is very reasonable.
Grand Rapids
As Michigan’s second-largest city, Grand Rapids combines the best of the best. The city has affordable housing prices that are 19.1 percent below the national average but isn’t without fun and culture. A growing art scene, excellent food and beer and easy access to nature keep locals busy. Grand Rapids has plenty of amenities but hasn’t yet handed in that small-town feel. It’s a great spot.
Rental prices are rising in Grand Rapids. Two-bedroom apartments are seeing the highest level of growth, up 26 percent from last year, but one-bedrooms are only slightly behind at 21 percent growth. A one-bedroom apartment rents for an average monthly cost of $1,187, while two-bedrooms are $1,467.
Home prices in the area are also experiencing growth, up 10 percent over last year. The median home sale price in Grand Rapids is $275,000.
Kalamazoo
With an eclectic and fun vibe, Kalamazoo has a lot going for it. From parks and lakes to craft beer and concerts, there’s no shortage of fun. There are also plenty of job opportunities and affordable housing. Home prices are 52.5 percent below the national average, which seems like a steal for all you get in this Western Michigan city.
Even with rent prices slowly creeping up, you should still have a lot of housing options. One-bedroom apartments, up 6 percent over last year, have an average monthly rent of $987. Two-bedroom apartments, also up 6 percent over last year, have an average monthly rent of $1,150.
Sale prices for homes are also equally reasonable. Up 10 percent over last year, the median home price in Kalamazoo is $220,000.
Michigan food prices
There are quite a few staple food items in Michigan, but the most iconic is the state’s pizza and its pasty. The pizzas are deep dish, with cheese to the very edge and toppings under the sauce. Pasty fillings include hearty ingredients like pork and potatoes, all encased in a pastry shell.
The great thing about these signature dishes is you can go out for them, or make them at home. For all those aspiring chefs, the average Michigan resident spends between $233 and $267 per month on groceries. The total grocery bill, though, varies based on average food prices.
- Kalamazoo is 22.1 percent below the national average
- Grand Rapids is 9.6 percent below the national average
- Detroit is 2.8 percent above the national average
What does this really mean? Well, at the grocery store in Kalamazoo, you’ll see ground beef for $3.52 a pound. In Detroit, that same beef will cost you $5.74, 39 percent more. Back in Kalamazoo, a loaf of bread will cost $1.55, while in Grand Rapids, that bread is $3.66, a difference of 58 percent.
Eating out in Michigan aligns the cities a little differently. In this case Detroit will give you your least expensive three-course meal for two, but only by a few dollars. This date night out in Detroit will cost $55, but in Grand Rapids and Kalamazoo, the same meal will run you $57.50. All things considered, you’re going out for about the same price. Not too bad for your cost of living in Michigan for food.
Michigan utility prices
Your utilities will work hard during a Michigan winter. The average daily temperature during this time is below 41 degrees Fahrenheit. The snow season is even longer, lasting almost five months. February is the snowiest month with an average accumulation of 5.7 inches. All of this to say, make sure you live in a place with a good heater.
As a result of this lengthy winter, average utility costs are high in all three cities. They actually cluster pretty close together.
- Kalamazoo is 4 percent below the national average
- Detroit is 2.7 percent below the national average
- Grand Rapids is 1.2 percent above the national average
Hanging so close to the national average across the state can mean pricer monthly energy bills, too. Anywhere from $166 to $180 is possible based on the energy averages in our three cities.
Michigan transportation prices
Transportation prices in Michigan also run on the higher side, closer to the national average. Since the state is rather large, a car is probably a requirement. That and most cities aren’t considered walkable, though they do have walkable areas. Both Grand Rapids and Detroit have high walk scores at 63 and 59, respectively. The cities are also considered bike friendly, although this most likely isn’t the case all year round.
Looking at the combined transportation costs:
- Kalamazoo is 8.2 percent below the national average
- Grand Rapids is 6.3 percent below the national average
- Detroit is 1.6 percent above the national average
If public transportation is your strategy for cutting down on the costs of owning a car, you’re in luck, Michigan has 82 local public transit agencies across the state to help get you where you need to go.
Detroit DDOT
The Detroit Department of Transportation, or DDOT, currently runs 37 bus routes. The entire system has additional routes, but as of now, a handful of direct and express lines are temporarily suspended. In addition to this thorough bus system, there’s also the QLINE streetcar, which runs from downtown to the city’s north end hitting key stops along the Woodward Corridor.
While the streetcar is currently free to ride, DDOT passes are $14 for a seven-day pass and $50 for a 31-day pass.
Grand Rapids The Rapid
Using their city name rather appropriately, The Rapid includes an extensive list of routes with bus stops at every major point in the city. There are also two BRT lines that help commuters get across town easier.
A one-way fare is $1.75, but you have the option to get a single-day or 31-day pass. The single-day pass is $3.50, and the 31-day pass is $47.
Kalamazoo KMetro
The KMetro bus system operates 21 routes, but not all run on the weekends, so make sure you keep a schedule handy. Routes crisscross the heart of Kalamazoo and fan out in every direction, providing an extensive, local system.
A one-way fare is $1.50, and Western University students can ride free with their student ID. A monthly pass is $60, and a nine-day pass is $20.
Michigan healthcare prices
Across Michigan, healthcare prices are pretty reasonable. Every city on our list is below the national average, the only key category where that’s the case.
- Kalamazoo is 5.1 percent below the national average
- Detroit is 2.9 percent below the national average
- Grand Rapids is 1.1 percent below the national average
These rates should help keep out-of-pocket expenses low when it comes to visiting the doctor. Within our three cities, the average cost to the doc is between $110 and $120. The average cost of a trip to the dentist is between $100 and $110. And, the average eye doctor visit costs as little as $74.
Michigan goods and services prices
The cost of living in Michigan for goods and services can really make or break your budget. These are the items that you include every month, but if you had to make cuts you could. Think of them as non-essentials. Doing so makes it easier to let them go should you have a rough month.
- Grand Rapids is 15.7 percent below the national average
- Kalamazoo is 0.5 percent above the national average
- Detroit is 5.1 percent above the national average
These averages can give you an overall impression of where total costs will lay, but individually, not everything is less expensive in the city with the lowest goods and services average. That’s why it’s best to look at the specific items you’d want to budget for yourself.
Grand Rapids may have the lowest average, but it’s only got the cheapest pizza based on this chart. Kalamazoo comes out consistently on the bottom with individual prices, even though its combined prices are above the national average.
Another service that debunks the combined ratings is childcare. This is an important one, whether you need it right now or not because it adds a hefty amount to your monthly costs. Interestingly enough, the highest monthly cost for a full-day, private preschool is in Grand Rapids at $1,150, and the lowest is in Detroit at $683.33. Kalamazoo leans closer to Grand Rapids, with a monthly cost that’s only $50 lower.
Taxes in Michigan
Michigan has a flat income tax rate of 4.25 percent per individual. When it comes to sales tax, the rate is 6 percent. Localities are not allowed to add any additional sales tax to the state rate. This keeps sales tax relatively low across Michigan.
So, if you’re shopping for furniture for your new apartment, for every $1,000 you spend only $60 goes to taxes. That should lead to lower overall prices since there’s less markup required to compensate.
How much do I need to earn to live in Michigan?
It’s easy to begin calculating how much you’d need to earn to live in Michigan. Start with rent. Keep this expense around 30 percent of your overall income, so if the average rent in Michigan is $1,178 per month, you’d need a minimum salary of $47,120.
This is a manageable number given that the average annual wage in Michigan is $59,234. With that salary, you’ll have plenty left over to upgrade to some higher-end amenities if you wanted.
If you want to make sure all your numbers match up, plug them into our rent calculator for a quick check.
Living in Michigan
With a relatively affordable cost of living, plenty of professional potential, lots of lakes to enjoy and more, Michigan is a great place to live. A vibrant culture and strong sense of community mean any city within the state will get you feeling right at home quickly. All you’ve got left to do before starting to pack is ensure what you can afford aligns with the costs of Michigan living. Grab a calculator.
Related links:
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com