Ann Arbor cost of living
Prices in the Ann Arbor, MI metro area run at 100.9 against a national average of 100, ranking it #69 of 387 metros. Rents there sit at 125.3.
What drives the number
Ann Arbor sits at 100.9, which is as close to the national average as this series gets. That makes it a useful reference point: a salary quoted here means roughly what the same salary means nationally. Against Michigan as a whole it is 4.7 points more expensive, which is the usual direction: cities cost more than the states around them.
Housing is doing nearly all of the work. Rents sit at 125.3 while goods sit at 93.7, a gap of 24.4 points between what it costs to live somewhere and what it costs to buy things. Someone who could reduce their housing cost here, by living further out or with fewer rooms, would remove most of the premium. Goods at 93.7 are themselves 6.3 points off national, which is a wide gap for a category that is mostly shipped in.
Comparing a job here against one elsewhere on the headline salary alone will mislead by roughly 0.9 per cent. Adjusting by the parity fixes that.
The vertical line is the national average of 100. Source: U.S. Bureau of Economic Analysis, Regional Price Parities, SARPP, 2024.
What the biggest local jobs are really worth
The same pay buys different amounts in different places, so a salary quoted in Ann Arbor is not comparable to one quoted elsewhere until it is divided by the local parity. These are the occupations that employ the most people here, with the quoted median alongside what that median is worth at national prices.
| Occupation | Employed | Median pay | Worth nationally | U.S. median |
|---|---|---|---|---|
| Teaching Assistants, Postsecondary | 12,930 | $37,410 | $37,076 | $44,930 |
| Registered Nurses | 12,030 | $94,050 | $93,211 | $93,600 |
| Office Clerks, General | 5,520 | $38,570 | $38,226 | $43,630 |
| Fast Food and Counter Workers | 5,450 | $30,090 | $29,822 | $30,480 |
| Retail Salespersons | 4,280 | $33,970 | $33,667 | $34,580 |
| Customer Service Representatives | 3,540 | $38,360 | $38,018 | $42,830 |
| Recreation Workers | 3,500 | $33,520 | $33,221 | $35,380 |
| Home Health and Personal Care Aides | 3,460 | $36,380 | $36,056 | $34,900 |
Pay from the BLS metro survey, adjusted by dividing by the metro parity of 100.9.
Nearby metro areas
| Metro area | All items | Rents | Rank |
|---|---|---|---|
| Detroit-Warren-Dearborn | 100.3 | 94.7 | #80 |
| Grand Rapids-Wyoming-Kentwood | 95.5 | 86.6 | #158 |
| Lansing-East Lansing | 95.0 | 83.5 | #168 |
| Kalamazoo-Portage | 94.8 | 81.6 | #171 |
| Monroe | 93.5 | 74.6 | #197 |
| Traverse City | 93.4 | 78.1 | #200 |
Ann Arbor: common questions
Is Ann Arbor expensive?
Prices are 0.9% above the national average, a parity of 100.9 where the country is 100. It ranks #69 of the 387 metro areas BEA measures. Against Michigan as a whole it is 4.7 points more expensive.
What salary do you need in Ann Arbor?
The median worker there earns $51,990, which buys what $51,526 buys nationally once local prices are taken into account. Comparing a salary offer between cities without this adjustment is comparing nothing useful.
Is housing the reason?
Usually. Rents here are at 125.3 against goods at 93.7. Goods barely vary between American cities because most are shipped and priced nationally; housing varies enormously, and it dominates any cost of living comparison.