Cost of Living in Ann Arbor, MI
Updated November 2026 · Washtenaw County · Ann Arbor, MI metro area · population 122,036
Prices in Ann Arbor are 4.3% above the US average (local index 104.3; the BEA index for the Ann Arbor, MI metro area is 100.9), with local housing the biggest cost driver at 136.4; a single adult's modelled budget is about $2,992 a month and the median rent is $1,649.
Prices by category
CostLiving local estimate. 100 = US average; 110 means prices are 10% higher. Housing reflects Ann Arbor's own median rent compared with the area's average rent; goods, utilities and other services are BEA's official price parities for the Ann Arbor, MI metro area, unchanged.
Ann Arbor price index by category, US average = 100: All items 104.3, Housing (rents) 136.4, Goods 93.7, Utilities 98.2, Other services 99.6
It is the 4th most expensive of the 25 Michigan cities in our data. More expensive than 58% of the cities we cover.
| BEA index | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| All items | 100.7 | 98.6 | 99.5 | 97.9 | 98.2 | 100.9 |
Monthly budget by household type
1 adult · 1-bedroom · modelled estimate for Ann Arbor, MI
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $1,322 | $15,864 | 44% |
| Utilities | $248 | $2,976 | 8% |
| Food at home | $264 | $3,168 | 9% |
| Transportation | $648 | $7,776 | 22% |
| Health care | $350 | $4,200 | 12% |
| Clothing, personal care & supplies | $160 | $1,920 | 5% |
| Total | $2,992 | $35,904 | 100% |
2 adults · 2-bedroom · modelled estimate for Ann Arbor, MI
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $1,619 | $19,428 | 34% |
| Utilities | $395 | $4,740 | 8% |
| Food at home | $488 | $5,856 | 10% |
| Transportation | $1,283 | $15,396 | 27% |
| Health care | $649 | $7,788 | 14% |
| Clothing, personal care & supplies | $314 | $3,768 | 7% |
| Total | $4,748 | $56,976 | 100% |
2 adults + 2 children · 3-bedroom · modelled estimate for Ann Arbor, MI
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $1,703 | $20,436 | 30% |
| Utilities | $480 | $5,760 | 9% |
| Food at home | $696 | $8,352 | 12% |
| Transportation | $1,704 | $20,448 | 30% |
| Health care | $604 | $7,248 | 11% |
| Clothing, personal care & supplies | $404 | $4,848 | 7% |
| Total | $5,591 | $67,092 | 100% |
Modelled estimate of basic costs, excluding taxes, child care and savings. Housing is rent excluding tenant-paid utilities (counted under utilities). See how the budget is calculated.
Housing costs in Ann Arbor
Rent by number of bedrooms
| Size | Median rent |
|---|---|
| Studio | $1,299 |
| 1 bedroom | $1,436 |
| 2 bedrooms | $1,759 |
| 3 bedrooms | $1,850 |
| 4 bedrooms | $2,064 |
Median rent: Census ACS 2020-2024 median gross rent by bedrooms (rent plus tenant-paid utilities, all renters).
Rent, home values and affordability
| Measure | Value |
|---|---|
| Median gross rent | $1,649 |
| Median contract rent (excl. utilities) | $1,518 |
| Median home value | $453,400 |
| Owner costs with a mortgage | $2,436/mo |
| Median household income | $82,212 |
| Rent as % of renter income Very expensive | 37.4% |
| Home value ÷ household income Expensive | 5.5× |
Census ACS 5-year 2020-2024.
Electricity and gas prices
Residential electricity in Michigan
22.99¢ per kWh, August 2026
12-month change: +10.9% (from 20.73¢) · US 18.16¢
Average household uses 630 kWh a month in Michigan ≈ $134/month. Source: EIA-861M (statewide average).
Regular gasoline regional figure: Midwest (PADD 2)
$4.10 per gallon, week of 2026-11-02
12-month change: +45.0% (from $2.83) · US $4.15
EIA weekly retail price survey; Michigan is covered by the Midwest (PADD 2) average.
Inflation in the Midwest
Consumer prices in the Midwest Census region rose +4.2% in the 12 months to September 2026 (US +3.7%). Nationally, food at home changed +1.8%, shelter +3.2% and energy +20.4%. Source: BLS CPI-U, not seasonally adjusted. CPI is published for regions and large metro areas, so the regional figure is shown.
Salary equivalent
Because prices in Ann Arbor are 4.3% above the US average, $60,000 here has the buying power of about $57,600 in an average-priced US area.
Formula: US-equivalent = salary × 100 ÷ 104.3. Based on the local cost index (CostLiving estimate from BEA RPP and Census rents); taxes not included.
Nearby cities
| City | Distance | Index | Budget (single) | Median rent |
|---|---|---|---|---|
| Westland, MI | 18 mi | 98.7 | $2,558 | $1,158 |
| Novi, MI | 19 mi | 106.9 | $2,950 | $1,747 |
| Livonia, MI | 20 mi | 101.0 | $2,589 | $1,322 |
| Dearborn Heights, MI | 23 mi | 101.1 | $2,580 | $1,331 |
| Farmington Hills, MI | 23 mi | 104.2 | $2,857 | $1,551 |
| Taylor, MI | 24 mi | 97.9 | $2,491 | $1,101 |
Cities with a similar cost of living
| City | Index | Budget (single) | Median rent |
|---|---|---|---|
| North Richland Hills, TX | 104.3 | $2,873 | $1,704 |
| Bremerton, WA | 104.3 | $2,949 | $1,641 |
| Sandy, UT | 104.3 | $3,040 | $1,777 |
| Bellingham, WA | 104.2 | $2,975 | $1,577 |
| Yucaipa, CA | 104.2 | $3,171 | $1,711 |
| Gresham, OR | 104.4 | $2,973 | $1,586 |
Compare Ann Arbor with another city
Frequently asked questions
Is Ann Arbor, MI an expensive place to live?
Ann Arbor has a local cost of living index of 104.3, which is 4.3% above the US average. This CostLiving estimate starts from the BEA Regional Price Parities 2024 for the Ann Arbor, MI metro area (100.9) and adjusts housing to Ann Arbor's own rents. It is 8.0 points above the Michigan average. It is the 4th most expensive of the 25 Michigan cities in our data. More expensive than 58% of the cities we cover.
How much money do you need to live in Ann Arbor?
Our modelled estimate of basic monthly costs is $2,992 for a single adult, $4,748 for a couple and $5,591 for a family of four, before taxes, child care and savings. A $60,000 salary in an average-priced US area buys about the same as $62,600 in Ann Arbor.
What is the average rent in Ann Arbor?
The median gross rent (rent plus tenant-paid utilities) is $1,649 a month (Census ACS 2020-2024). By size: 1 bedroom $1,436, 2 bedrooms $1,759, 3 bedrooms $1,850. The typical renter spends 37.4% of household income on rent (very expensive).
How much does a house cost in Ann Arbor?
The median owner-estimated home value is $453,400, 5.5 times the median household income of $82,212 (expensive). Owners with a mortgage pay a median $2,436 a month in housing costs.
How much is electricity and gas in Ann Arbor?
Michigan residential electricity averaged 22.99¢ per kWh in August 2026 (US 18.16¢). Regular gasoline was $4.10 a gallon (Midwest (PADD 2) average, week of 2026-11-02).
Sources and notes
- Local cost index: CostLiving estimate from BEA Regional Price Parities 2024 for the Ann Arbor, MI metropolitan statistical area (BEA index 100.9) with housing from Census ACS median rent (city figure); see the methodology.
- Rents, home values, income, population: U.S. Census Bureau ACS 5-year 2020-2024, Census place 2603000 (Ann Arbor city).
- Electricity: EIA-861M, Michigan residential average, August 2026.
- Gasoline: EIA weekly retail regular gasoline, Midwest (PADD 2), week of 2026-11-02.
- Inflation: BLS CPI-U Midwest region, September 2026.
- Budget baselines: BLS Consumer Expenditure Survey 2025; electricity use by household size: EIA RECS 2020.
- Gasoline price: regional figure (EIA publishes weekly prices for only 9 states).
Labels such as “county figure” or “state nonmetro figure” mark values that come from a larger area because the city-level figure is unavailable or unreliable. The monthly budget is a modelled estimate, not observed spending, and excludes taxes. This page is for general information and is not financial advice. Methodology · All sources