What is the cost of living in Ann Arbor, MI?
According to the most recent data on the cost of living, Ann Arbor has an overall cost of living index of 122, which is 1.2x higher than the national index of 100.
Compared to Michigan, Ann Arbor has a cost of living index that's 1.3x higher than Michigan's index of 91.
The standard of living in Ann Arbor ranks as #171 most affordable out of the 179 places we measured in Michigan. By definition, that implies Ann Arbor ranks as the #8 most expensive place in the Wolverine State.
For more reading on life in Ann Arbor, check out:
Ann Arbor Cost Of Living Vs. Michigan
Six factors go into calculating the cost of living index in Ann Arbor. Here is how it fares on each of the criteria:
The Services index in Ann Arbor is 98.
The Groceries index in Ann Arbor is 101.
The Health index in Ann Arbor is 173.
The Housing index in Ann Arbor is 94.
The Transportation index in Ann Arbor is 94.
The Utilities index in Ann Arbor is 104.
| Living Expense | Ann Arbor | Michigan | National Average |
|---|---|---|---|
| Overall | 122 | 91 | 100 |
| Services | 98 | 97 | 100 |
| Groceries | 101 | 98 | 100 |
| Health | 173 | 75 | 100 |
| Housing | 94 | 98 | 100 |
| Transportation | 94 | 101 | 100 |
| Utilities | 104 | 98 | 100 |
Ann Arbor Cost Of Living Compared To Michigan Averages
Index where 100 = national average. Source: cost-of-living index 2026.
For more reading on cost of living around Michigan, check out:
Protect your home budget Compare home warranties in Ann Arbor Get matched →Source: Cost-of-living index 2026, normalized to US average = 100
Ann Arbor, MI Housing Cost Breakdown
Housing swings affordability the most between places in Michigan, so we broke down housing costs into more detail. Home and income data comes from the most recent US Census ACS 2020-2024. The key points are:
The Median Home Value in Ann Arbor is $523,391.
The Median Rent in Ann Arbor is $1,649.
The Median Income in Ann Arbor is $82,212.
The Home Value To Income in Ann Arbor is 6.4x.
The Rent To Monthly Income in Ann Arbor is 0.24x.
Ann Arbor, MI Costs By Category
Detailed Ann Arbor Services costs vs. Michigan
Detailed Ann Arbor Groceries costs vs. Michigan
Detailed Ann Arbor Health costs vs. Michigan
Detailed Ann Arbor Transportation costs vs. Michigan
Ann Arbor SnackAbility
Cost Of Living In Cities Around Ann Arbor
The cost of living varies in the cities and towns around Ann Arbor. Here's a quick look at the cost of living in the most populous nearby places:
Westland, MI has a cost of living index of 92, 0.8x Ann Arbor.
Novi, MI has a cost of living index of 116, 1.0x Ann Arbor.
Ypsilanti, MI has a cost of living index of 95, 0.8x Ann Arbor.
| City | Population | Cost Of Living | Vs. Ann Arbor |
|---|---|---|---|
| Westland, MI | 83,633 | 92 | 0.8x |
| Novi, MI | 66,717 | 116 | 1.0x |
| Ypsilanti, MI | 19,857 | 95 | 0.8x |
| Wixom, MI | 17,295 | 104 | 0.9x |
| South Lyon, MI | 11,950 | 103 | 0.8x |
| Plymouth, MI | 9,214 | 113 | 0.9x |
| Saline, MI | 9,006 | 109 | 0.9x |
| Whitmore Lake, MI | 7,878 | 99 | 0.8x |
| Northville, MI | 6,069 | 116 | 1.0x |
| Milan, MI | 5,987 | 97 | 0.8x |
