Considering a move to Michigan? With its diverse economy, dynamic regions, and balanced living costs, Michigan offers an appealing lifestyle for many. In 2025, the average cost of living in Michigan stands at a 90.1 index, very close to the national average.
To live comfortably, residents need an estimated salary of about $87,000 to sustain a middle-class standard. Here’s a closer look at what expenses to expect across housing, utilities, groceries, and more in Michigan.
TL;DR: Average Cost of Living in Michigan 2025
- Cost of Living Index: 90.1, near the national baseline of 100
- Required Annual Income for Comfortable Living: Approximately $87,000
- Average Monthly Rent: $1,400
- Median Home Price: $257,800
- Monthly Utility Costs: Between $630 and $650
- Weekly Grocery Expenses: Around $236
- Monthly Health Insurance Premium: $351
- Average Annual Salary: Approximately $50,000
- Childcare Costs Range (Monthly): $400 – $1,500
Understanding Michigan’s Cost of Living
The average cost of living in Michigan reflects a balance between affordable living and access to urban amenities. To live comfortably, residents typically need to earn around $87,000 annually. Meanwhile, the average salary in Michigan is approximately $50,000, slightly above states like Ohio and Indiana.
Monthly expenses in Michigan include rent averaging $1,400, utilities ranging from $630 to $650, and groceries costing around $236 weekly. Health insurance typically runs about $351 per month.
Childcare costs can vary widely between $400 and $1,500, depending on the specific needs. Therefore, Michigan’s living expenses are generally moderate compared to other states.
Housing and Rental Market in Michigan
Housing affordability presents both challenges and advantages in Michigan. The average rent is $1,400 per month, while the median home price stands at about $257,800. Overall, these figures show a moderate market that balances demand and availability.
Here’s how Michigan’s housing costs compare with nearby states:
- Rent exceeds Iowa’s average of $990 by 42%
- It is approximately 12% above Ohio’s $1,250
- Michigan’s rent surpasses Wisconsin’s $1,150 and Indiana’s $1,086 by 18-22%
- Median home values are 10% above Iowa’s $233,000
- They stand 30% higher than Ohio’s $197,000
- Nevertheless, median prices are 20% less than Wisconsin’s $310,000
Major cities like Detroit, Grand Rapids, and Ann Arbor have unique housing markets that reflect economic strengths in automotive, healthcare, and technology sectors. For example, Detroit offers more affordable rentals, while Ann Arbor has higher home prices.
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Utilities and Other Living Expenses in Michigan
Utility bills in Michigan tend to be higher than in neighboring states, but still reasonable. Average monthly utility costs range from $630 to $650, mainly driven by electricity and heating.
In comparison:
- Utilities cost 6-12% more than in Iowa, Ohio, Indiana, and Wisconsin
- They are 31% cheaper than California’s utility bills
Groceries, transportation, and healthcare add to the living cost profile:
- Groceries cost about $236 weekly, slightly above Iowa and Wisconsin, but below Ohio and California
- Gasoline averages $3.30 per gallon, aligned with the Great Lakes region
- Health insurance premiums average $351 monthly, below the U.S. average of $425 and less than in Wisconsin or California
Income and Job Market Overview
Michigan’s average annual salary is roughly $50,000, enough to cover most living expenses in many local communities. This salary is slightly higher than Ohio’s $48,200 and Indiana’s $49,000, while closely tracking Iowa’s $49,970.
As a result, many residents can manage essential needs like housing, utilities, food, and healthcare comfortably. Childcare costs vary widely but generally fit within household budgets.
Is Living in Michigan Worth It?
The average cost of living in Michigan makes it a practical choice for many. The state offers a good balance between affordability and quality of life. Housing, utilities, and healthcare are moderate compared to coastal states.
In addition, Michigan offers vibrant cities with diverse job markets and local amenities. On the other hand, it’s far less expensive than states like California, making it a smart option for budget-conscious relocators.
Regional Insights and Relocation Tips
Newcomers should focus on Michigan’s economic hubs like Detroit, Grand Rapids, and Ann Arbor. These areas have strong job markets and a range of living options.
Meanwhile, smaller cities and rural areas offer even more affordable housing and other living costs. Planning for utilities, childcare, and transportation expenses will help newcomers settle comfortably.
Final Thought on Michigan’s Average Cost of Living
In sum, Michigan’s average cost of living in 2025 ranks close to the national average. It offers moderate housing and utility costs with a competitive salary range. Compared to peer states, Michigan is more affordable than Wisconsin and California but slightly more expensive than Ohio and Iowa.
This balance makes Michigan an economical and appealing place to live, providing a good lifestyle without high expenses.
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FAQs About Michigan’s Cost of Living
What is the average rent in Michigan?
In Michigan, the average rent is around $1,400 per month—higher than Iowa and Ohio but lower than California.
Are Michigan home prices expensive?
Michigan’s median home price is about $257,800—affordable compared to California and Wisconsin but higher than Ohio and Iowa.
How much salary is needed to live comfortably in Michigan?
In Michigan, a single adult needs approximately $87,000 annually to maintain a middle-class lifestyle.
How do Michigan’s utility costs compare regionally?
Utilities in Michigan average around $640 per month—6–12% higher than nearby states but 31% less than California.
Is Michigan an affordable state to live in?
Yes, Michigan is affordable compared to coastal states, with reasonable costs across housing, healthcare, and groceries.
