What’s the cost of living in Michigan?

1 min readLast updated January 29, 2024by Charlie Barton

Wondering about the cost of living in Michigan? This article summarizes everything you need to know, from tax rates to healthcare costs.

When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If you’re planning a move to Michigan, here are some current statistics related to the cost of living in the state that could help you make up your mind.    

The average cost of living in Michigan 

Michigan is home to over 10 million people.   

It is also home to one of the country's lowest cost of living.  

While according to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 14th in a list of states with the lowest to the highest cost of living. 

Housing costs in Michigan 

As of March 2023, the average home value in Michigan is estimated to be around $218,684, according to the Zillow Home Value Index as of March 2023.  

It’s important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data: 

CityAverage Home Value
Detroit $65,823
Grand Rapids $263,054
Warren $186,323
Sterling Heights $277,942
Ann Arbor $474,616

The monthly rental price ranges across the state for those considering renting in Michigan. For example, a one-bedroom in Michigan costs $938 in Grand Rapids, and a two-bedroom costs $1,188. 

Utility costs in Michigan 

Utility costs play a significant role in Michigan's overall cost of living. According to Forbes, the average monthly cost is around $413.  

UtilityAverage cost in Michigan
Energy bill $117.57
Monthly water bill $29
Internet $30
Natural gas $74
Phone bill $114
Streaming $48.50

Grocery and food costs in Michigan 

When it comes to groceries and food costs, Michigan generally aligns with prices found elsewhere in the United States.   

According to Zippia, those in Detroit pay over $327 on average each month. 

According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.   

Transportation costs in Michigan 

Transportation costs, including gas prices and vehicle maintenance, impact Michigan's overall cost of living.  

According to MIT, a single adult with no children can expect to pay upwards of $5,300. 

Gas prices in Michigan are typically in and around the national average. At the time of writing, Michigan was at the national average. These prices fluctuate over time.   

It is also worth noting that prices can vary across different regions within the state.  

Healthcare costs in Michigan 

Understanding healthcare expenses is crucial when considering the cost of living.  

The specific healthcare costs in Michigan can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. 

MIT estimates:  

ScenarioAnnual healthcare expenditure
One adult, no children $3,108
One adult, one child $6,678
One adult, two children $6,688
Two adults (one working), no children $5,903
Two adults (one working), one child $6,688
Two adults (one working), two children $6,613
Two adults (two working), no children $5,903
Two adults (two working), one child $6,688
Two adults (two working), two children $6,613

Childcare costs in Michigan 

Families in Michigan currently pay around $15,560 per year for childcare for one child. This figure doubles for two children.   

However, it's important to note that this figure can vary across the state.  

Taxation in Michigan 

Michigan’s state income tax rate is a flat rate of 4.25% and 4.35%.  

Here's a comparison of income tax rates among some neighboring states:  

StateIncome Tax Rate Range
Michigan 4.25% - 4.35%
Indiana 3.23% - 5.75%
Ohio 0.495% - 4.797%
Wisconsin 3.54% - 7.65%
Illinois 4.95% (flat-rate)

The state sales tax rate in Michigan is 6%. However, it's important to note that additional local taxes may apply, such as county taxes, city taxes, and special district taxes. The total sales tax rate can vary depending on the specific location within Michigan4.25 

The bottom line

The amount of money needed to live comfortably in Michigan can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think. 

It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Michigan. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning. 

Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today. 

Writer

Charlie Barton

Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.