Cost of Living in Michigan

(Last Updated – September 3,2025)

Michigan is known for its lakeside coastlines and for being the heart of America’s automotive legacy. Its lush forests and majestic lakes are a favorite among outdoor recreation enthusiasts, while affordable housing and urban revitalization efforts in major metropolitan cities, like Detroit, attract new residents.

The state’s natural beauty and economic promise, however, are balanced against extreme winter weather and an unstable job market outside the biggest metros. If you’re thinking about relocating to the Great Lakes State, here’s what to know about the cost of living in Michigan.

What’s the Average Cost of Living in Michigan?

Average Cost of Living in Michigan: $52,210 per year

Michigan is in the top 10 of states with the lowest cost of living, according to the Missouri Economic Research and Information Center (MERIC). The national index is fixed at 100, so the lower the index number, the lower the state’s cost of living (and vice versa).

Michigan ranked eighth, with a cost of living index of 89.8.

The average annual cost of living here is $52,210 per person, according to the U.S. Bureau of Economic Analysis Cost of Living Index. That translates to average monthly expenses of $4,350 per person.

Here’s what that looks like when broken down by spending categories.

Category	Average Annual Per-Capita Cost in Michigan
Housing and Utilities	$8,810
Health Care	$8,381
Food and Beverages (nonrestaurant)	$4,172
Gas and Energy Goods	$1,449
All Other Personal Expenditures	$29,398

Source: The Bureau of Economic Analysis, Personal Consumption Expenditures by State

Housing Costs in Michigan

Median Housing Costs in Michigan: $837 to $1,521 per month

As of July 1, 2024, there were approximately 4.6 million housing units in Michigan, according to the U.S. Census Bureau. August 2025 Zillow data revealed that the average home value in Michigan is $262,505. This is lower than the average U.S. home value of $368,581 — good news for first-time homebuyers on a budget.

Below is generally what you can expect to pay for housing, based on the latest Census data:

•  Median monthly mortgage home loan cost: $1,521

•  Median studio rent: $837

•  Median one-bedroom rent: $900

•  Median two-bedroom rent: $1,148

•  Median three-bedroom rent: $1,270

•  Median four-bedroom rent: $1,386

•  Median five-bedroom or more rent: $1,405

•  Median gross rent: $1,101

The city you settle into greatly impacts housing costs. Here’s a snapshot of average home values across various Michigan cities, per Zillow.

Of course, Michigan home prices can vary substantially depending on where you are in the state. Here are the typical home prices in 10 major Michigan cities, according to Zillow, in August 2025.

Michigan Area	Average Home Value
Detroit	$80,676
Lake Ann	$399,204
Traverse City	$439,588
Cedar	$515,880
Glen Arbor	$594,309
Empire	$632,605
Suttons Bay	$648,864
Lake Leelanau	$860,962
Leland	$1,115,111
Maple City	$605,440

If you’re interested in buying a home in Michigan, finding down payment assistance programs can help.

Recommended: Jumbo Loans

Utility Costs in Michigan

Average Utility Costs in Michigan: $330.62 per month

In addition to housing expenses, you’ll want to budget for other costs, like utility services. Here’s how much it costs to keep the lights on in the average Michigan household.

Utility	Average Michigan Bill
Electricity	$113.62
Natural Gas	$74
Cable & Internet	$116
Water	$27

Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price, 2023; Statista.com, “Average monthly residential utility costs in the United States in 2023, by state; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report 2023; and Rentcafe.com, What Is the Average Water Bill?

Groceries & Food

Average Food & Beverage Costs in Michigan: $348 per month

According to the Bureau of Economic Analysis, the average monthly food and beverage cost for Michiganders is $348. For a family of four, grocery and food expenses climb to $1,392 per month.

Some metropolitan regions in the state have a grocery item index below the national average of 100. One exception is Detroit-Dearborn-Livonia metro, which has an index of 101 — slightly higher than the national average.

Michigan Metro	Grocery Items Index
Niles	96.7
Kalamazoo-Portage	96.8
Flint	98.3
Grand Rapids-Kentwood	98.4
Detroit-Dearborn-Livonia	101.0

Source: The Council for Community and Economic Research – Cost of Living Index, 2024 average

Transportation

Average Transportation Costs in Michigan: $10,166 to $18,917 per year

Generally, Michigan residents rely on personal vehicles as their primary transportation. Residents in large cities, like Detroit and Ann Arbor, have access to public city buses, Amtrak rail, and downtown-specific services, like the QLINE streetcar, which can help reduce transportation expenses.

Family Makeup	Average Annual Transportation Cost
One adult, no children	$10,166
Two working adults, no children	$11,765
Two working adults, three children	$18,917

Source: MIT’s Living Wage Calculator, 2025

Health Care in Michigan

Average Health Care Costs in Michigan: $8,381 per person, per year

The Bureau of Economic Analysis’ Personal Consumption Expenditures report found that the average health care costs in Michigan was $8,381 per person, annually.

Health expenses are highly variable, though. Your actual expense will depend on your age, current medical needs and treatments, and level of health insurance coverage, among other factors.

Child Care

Average Child Care Costs in Michigan: $878 to $1,135 per child, per month

Child care is generally a significant monthly expense for parents, and it’s no different for families in Michigan. The average monthly cost of child care in the state for just one child rivals the cost of one month’s rent for a two-bedroom unit.

Below are average child care costs, based on the type of care needed.

Type of Child Care	Average Cost Per Month, Per Child
Infant Classroom	$1,135
Toddler Classroom	$974
Preschooler Classroom	$878
Home-Based Family Child Care	$1,098

Source: CostofChildCare.org

Taxes

Marginal Tax Rate in Michigan: 4.25%

Individual Michigan residents pay a flat marginal state income tax rate of 4.25%, according to the Tax Foundation’s 2025 State Individual Income Tax Rates and Brackets report. Consumers in the state also face a 6% sales tax on goods and services.

Let’s take a look at how Michigan stacks up against a couple of neighboring states.

	Michigan	Wisconsin	Indiana
Income tax	4.25% flat	7.65%	3%
Property tax rate	1.15%	1.25%	0.77%
Sales tax	6.0%	5.0%	7.0%
Corporate tax	6.0%	7.9%	4.9%

Miscellaneous Costs

After budgeting for essential monthly expenses, Michigan residents can use their remaining discretionary income toward the state’s entertainment and iconic food options. Here are some to consider:

•  The Henry Ford Museum: $38 for regular price general admission

•  Ferry ticket: $38 round trip

•  Pictured Rocks National Lakeshore: Up to $25 for a standard pass

•  Coney dog: $2.60

If your budget feels tight each month, reducing your miscellaneous costs is the first step to maintaining a manageable lifestyle in Michigan.

How Much Money Do You Need to Live Comfortably in Michigan?

What constitutes a “comfortable lifestyle” is subjective and differs from person to person. Factors like the number of people in your household and your personal priorities also influence how much you’ll need to live your preferred lifestyle. And remember, the cost of living in the U.S. varies depending on your exact location.

One way to gauge whether Michigan is a financially comfortable place to live is by evaluating its affordability. U.S. News and World Report’s Affordability Ranking placed Michigan at 23rd on the list of most affordable states — solidly in the middle. Additionally, MERIC’s cost of living index put Michigan below the national average for cost of living.

Recommended: Best Affordable Places in the U.S.

What City Has the Lowest Cost of Living in Michigan?

According to the Council for Community and Economic Research, Benton Harbor and Kalamazoo are two Michigan cities that offer affordable living.

Benton Harbor, Michigan

Benton Harbor, located southwest of Grand Rapids and near St. Joseph, offers lakefront living and a vibrant Arts District and culture. Its low cost of living, at 63.7, makes it an exceptionally affordable city to call home.

Kalamazoo, Michigan

Kalamazoo attracts students to the city, thanks to the multiple colleges and universities within its borders. Though it’s located between Detroit and Chicago, there’s plenty to do and see right here in town, including festivals, museums, and more. The city’s various amenities, coupled with housing costs that are about 40% cheaper than the national average, makes it an appealing place to live for young professionals and families.

Helpful Resources for Future Michigan Residents