Michigan cost of living
Can you afford to live in the Great Lakes State?
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Considering a move to Michigan means planning for more than just new scenery and opportunities. It also requires careful budgeting for everyday expenses. Whether you’re headed for Detroit’s urban core, the suburbs or a lakeside community, understanding expenses in Michigan will help you make an informed decision.
To determine the cost of living in Michigan, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Michigan spend $52,210 each year on goods and services, on average.
Jump to insightThe median rent in Michigan is $1,136, versus the national median rent of $1,639.
Jump to insightResidents in Michigan spend $236.38 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $3.19 in Michigan.
Jump to insightRecent data shows that employees in Michigan pay $1,666 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Michigan
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Michigan was $52,210 in 2023. This figure shows what Michigan residents typically spend each year on housing, health care, food, energy and other necessities.
Here’s a breakdown of the largest spending categories in Michigan:
| Category | Annual per-capita cost in Michigan |
|---|---|
| Housing and utilities | $8,810 |
| Health care | $8,381 |
| Food and beverages for off-premises consumption | $4,172 |
| Gasoline and other energy goods | $1,449 |
| All other personal consumption expenditures | $29,398 |
| Total cost | $52,210 |
Housing costs in Michigan
For most Michigan families, housing is the single largest expense. Recent data from Apartments.com puts the average rent in Michigan at $1,136, which is lower than the national average rent of $1,639. Rental costs vary by city and neighborhood, but the U.S. Census Bureau’s 2023 American Community Survey details the typical monthly rents in Michigan:
- One-bedroom rent: $900
- Two-bedroom rent: $1,148
- Three-bedroom rent: $1,270
- Four-bedroom rent: $1,386
If homeownership is your goal, the median home price in Michigan is $292,100, noticeably less than the national median of $446,638. This can make buying a home more accessible for many families.
It’s also important to factor in property taxes. Michigan ranks No. 14 for highest effective property tax rates in the nation, with an effective property tax rate of 1.15%.
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Food costs in Michigan
Grocery bills in Michigan are influenced by where you shop, your family size and how often you dine out. The latest U.S. Census data shows the average weekly grocery spend in Michigan is $236.38, compared with the U.S. average of $270.21.
Shopping habits and location play a big role in your total food expenses. People who prefer to cook at home might notice some savings, especially if they buy local or shop in bulk, but eating out — especially in larger cities or tourist hotspots — will quickly increase monthly expenses.
Smaller Michigan towns tend to offer lower grocery and restaurant prices, helping families stretch their budgets a bit further.
Transportation costs in Michigan
Transportation expenses include both fuel and insurance. In Michigan, the average price for a gallon of regular gas is $3.19, compared with the national average of $3.13.
Auto insurance is another key cost for Michigan drivers. The average premium (including liability, collision and comprehensive coverage) is $1,428.65, compared with the national average of $1,258.
Health care costs in Michigan
For families relying on employer-sponsored health insurance, the typical annual employee contribution in Michigan is $1,666. Employers generally cover the remaining $6,110 of the $7,775 total premium.
Nationally, employees contribute an average of $1,640 toward a total premium of $8,182.
Utility costs in Michigan
Utilities are another regular expense for Michigan residents. The average monthly electric bill is $113.62, compared with $136.84 for the U.S. as a whole.
If you use natural gas, expect to pay about $9.55 per thousand cubic feet in Michigan, while the national average is $12.92.
FAQ
Does Michigan have a high cost of living?
No, Michigan does not have a high cost of living compared with the national average. Housing and rent are generally less expensive than in most other states, though gasoline costs can be slightly higher.
Is Michigan a good place to live?
Yes, Michigan is a good place to live if you value affordable housing and diverse communities. Many people are choosing to move to Michigan, which reflects a strong interest in what the state offers. The lower cost of living can make it easier for families to find a comfortable lifestyle.
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Is Michigan good for renters?
Yes, Michigan is good for renters. Rent is typically more affordable compared with much of the U.S., and there is decent rental availability throughout the state. However, tenant protections are not as strong as in some other places.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
