What Is the Cost of Living in Michigan? It’s More Livable Than You Think
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Michigan’s economy is about to explode. In 2024, Area Development named the Wolverine State the 10th best state for doing business — its highest ranking in this annual survey’s history. If this recognition translates into more jobs, the future is bright for Michiganders and newcomers. What is the cost of living in Michigan? Learn how much you can expect to pay for essentials if you move here.
How Much Is Housing in Michigan?
According to Zillow’s July 2025 data, the average rent price across all bedrooms and property types in the state was $1,388 monthly — a $7 decrease both month over month and year over year. It’s 33.9% below the national average of $2,100.
In terms of home sale prices, $291,200 was the median figure in June 2025, which was 6.6% higher than the same period in the previous year. Redfin’s five-year historical data revealed that sale prices in Michigan fluctuated cyclically but reached a new high yearly.
The state is also one of the most affordable places to build a house. The average construction cost is $230,075, making it the second-cheapest nationwide.
How Much Is Transportation in Michigan?
Fuel prices drive the average cost of living in Michigan and other car-dependent states. In one week in July 2025, car owners statewide paid an average of $3.23 per gallon, although public transportation in urban areas can be affordable. Those living outside major cities mainly rely on private vehicles and have to budget for parking fees.
On the bright side, the state has relatively low mileage per capita. You may not have to travel longer distances between home and work if you live there.
How Much Do Groceries Impact the Average Cost of Living in Michigan?
In 2024, a person in Michigan spent an average of $327.12 on monthly groceries — $27.38 above the national average. Grocery prices in the Great Lakes State also dipped by 0.98% from 2022 to 2024.
How High Are Insurance Rates in Michigan?
Insurance rates tend to inflate Michigan’s cost of living figures. In 2024, full-coverage car insurance policies statewide cost an average of $3,131, about $500 above the national average.
Michigan lawmakers want to curb the high rates by passing a bill requiring insurers to slash the premiums of new policies and existing ones upon first renewal by at least 10% without reducing benefits. Another legislative measure aims to prohibit insurance carriers from charging a reinstatement fee or a higher rate to a customer with a previous lapse in coverage.
Michiganders’ homeowners insurance rates are below the national average. However, premiums statewide have increased more sharply than in most parts of the nation.
Do Utilities Make Michigan’s Cost of Living Better or Worse?
Water Wonderland has some of the most affordable utility services in the U.S. Parts of Michigan receive an average of 154.5 inches of snow, so many don’t feel the pinch during the cold season.
Michiganders spend an average of $424 on utilities monthly. Here’s the breakdown:
- Electricity: $109.86
- Water: $52.77
- Natural gas: $26
- Sewer: $43
- Trash: $62.5
- Streaming: $60
- Internet: $66.89
- Phone: $66
Premium streaming subscriptions are the least essential utility but cost more than gas, water, and sewer separately. Consuming content from free sources like YouTube can save you tens of dollars monthly.
How Much Does Health Care Affect the Cost of Living in Michigan?
Health care affordability and access are less of a concern in Michigan. Although the sector could use more public funding, Michiganders enjoy lower costs and more physicians per capita than the average. The state also has a low rate of uninsured individuals.
Curiously, Michigan’s population is less healthy than the rest of the nation. Race, ethnicity, socioeconomic status and location often determine health outcomes and mortality rates.
How Do Taxes Influence Michigan’s Cost of Living?
Michigan had the 14th-most competitive tax system in 2025. Its notable tax rates include:
- Effective property tax: 1.24% on primary residences based on the property’s assessed value
- Gas tax: $0.48 per gallon
- Cigarette excise tax: $2
- Sales tax: 6%
The state has a flat individual income tax rate of 4.25%. It’s the same taxation approach Colorado, North Carolina and six other states use. Michigan doesn’t charge estate and inheritance taxes.
When used strategically, Michigan’s sales tax can lower your average cost of living. Combining it with the state’s lower-than-national-average electricity costs increases the financial advantages of electric vehicle (EV) ownership. Driving electric lets you live in a more affordable suburb and minimize commuting expenses.
EVs are usually more expensive to insure for many reasons, but the leading cause is the high up-front cost. A more expensive car requires a higher coverage limit, driving up the premium. Fortunately, EVs tend to depreciate significantly.
A good strategy is to buy a used electric car with low mileage. A hardly driven EV should cost significantly less and can meaningfully lower insurance and transportation expenses.
Is Michigan Expensive to Live In?
The answer depends on where you plan to live in the state, your income and your lifestyle. In 2023, Michigan’s median annual wage across all occupations was $46,940, so expect to make above or below $22.57 per hour if you land a job there.
The above figures assume you work full time — or 2,080 hours a year — and exceed the living wages for childless single adults in the state. You can get a more decent standard of living without clocking in more hours if you secure employment in a larger county experiencing a steady rise in average weekly wage, like Washtenaw.
Remote tech workers currently residing in places with higher living costs can enjoy significantly more purchasing power after relocating to Michigan. Your savings will still be noticeable even if you move to one of the state’s big cities.
According to data from The Council for Community and Economic Research, moving from San Francisco to Grand Rapids will reduce your expenses on:
- Housing by 65%.
- Transportation by 31%.
- Groceries by 19%.
- Health care by 22%.
Imagine how much more you can stretch your dollars if you relocate to a Michigan town with a lower cost of living.
Is the Cost of Living in Michigan Reasonable?
Michigan is far from the most livable state in the U.S., but it’s also far from the worst. The state is in the middle of the pack, and its economy is gaining steam. The average cost of living in Michigan will most likely rise as it becomes more prosperous, and so will its wages.
The Wolverine State may not be as attractive as Florida, the Carolinas, and Texas as a domestic migration destination postpandemic, but don’t overlook it. You may miss out on something promising.
Frequently Asked Questions
Find answers to common Michigan cost of living questions.
What Is the Monthly Cost of Living in Michigan?
The Living Wage Calculator says that the single, childless adults in Michigan typically spend $43,610 annually to meet their basic needs, translating into $3,634.17 monthly. Child care costs $9,526 for one kid, $18,281 for two and $24,385 for three.
What Is the Livable Salary in Michigan?
In Michigan, a $37,363 annual salary after taxes is livable for a single adult without a child. The living wage for dual-income households without a child is $53,746, highlighting the financial power of having someone to split bills with.
What Is the Average Wage in Michigan?
According to the Michigan Center for Data and Analytics, the median annual wage across all occupations was $46,940 in 2023. In other words, one-half of wage earners made less and the other half earned more that year.
About The Author
Rose is the managing editor of Renovated and a dedicated freelance writer with over six years of experience in the home and garden industry. Her passion for landscaping and sustainable practices is deeply rooted in her upbringing — growing up in a family of contractors, she was exposed to the world of construction and design from a young age. This hands-on experience fostered her love for nature and gardening, giving her a green thumb and a keen eye for creating beautiful outdoor spaces.
Throughout her career, Rose has honed her expertise in researching and writing about sustainable construction practices, focusing on innovative technologies that enhance the built environment while minimizing environmental impact. She is particularly interested in green roofing, water-efficient landscaping, and integrating native plants in design, all reflecting her commitment to sustainability. Rose's work has appeared in various publications, where she shares valuable insights and practical tips for seasoned professionals and novice DIY-ers.
In addition to her writing, Rose enjoys collaborating with landscape architects and contractors on projects that emphasize eco-friendly design and sustainable materials. She believes that every garden has the potential to be a vibrant ecosystem and works to inspire others to create spaces that are not only beautiful but also environmentally responsible.
