Cost of Living in Ann Arbor, MI 2022

Ann Arbor is an incredible city and one of the best places to live in the country. Residents enjoy the best of both worlds in Ann Arbor, with the feel of a bustling city paired with small-town local pride.

Countless characteristics make Ann Arbor both charming and exciting. Here, you’ll find the city to be a book-lovers paradise, a vibrant hub for the arts, and a perfect home for any outdoor enthusiast.

Whether you’re moving to Ann Arbor to take advantage of the great outdoors, the small-town experience, or a combination of both, you’ll want to get a good idea of what your costs will look like. So let’s look at the cost of living in Ann Arbor to understand better how much you need to live there.

Ann Arbor Housing Costs

Rental trends in the winter slow the demand for rental properties thanks to colder weather. Ann Arbor has followed these common national trends with declining rent prices over the past month. According to the latest Rent Report on Ann Arbor, the median rent index is $1,536 for a one-bedroom apartment and $1,907 for a two-bedroom.

Although Ann Arbor has only seen a 1.9% increase in rent prices in the last month, these prices are still 12.6% higher year-over-year. However, the city's year-over-year rent growth remains below the national average of 16.3% but above the state average of 11.6%.

Over the last year, various popular cities have seen significant rent increases even greater than Ann Arbor. Some of the most popular cities, including their year-over-year growth, across the country, include New York City (+40%), Phoenix (+25.4%), and Miami (+28.14%). The median rent index for a two-bedroom apartment in these cities is $3,799, $1,498, and $3,382, respectively.

The Ann Arbor housing market has seen steady, significant growth, with median home prices currently at $384,611. Compared to other major cities across the country, these prices are reasonable, especially when you consider the median price index of New York City is now at $1,300,000. Other comparable cities are lower, with Phoenix at $404,005 and Miami at $480,356.

Ann Arbor Transportation

Ann Arbor’s official public transportation operator is the Ann Arbor Area Transportation Authority, also known as TheRide. TheRide serves the greater Ann Arbor-Ypsilanti area. There are a variety of services provided by TheRide, including:

• Airport services (AirRide)
• Event services (FootballRide)
• Demand-responsive services (FlexRide, NightRide, HolidayRide)
• Commuter services (Park & Ride, Vanpools)
• Paratransit services (A-Ride)
• Fixed route buses

Public transportation in Ann Arbor is easy to use, comfortable, and reliable. Still, you might be interested in having a vehicle of your own. If you plan to make the most out of living in Ann Arbor, you’ll probably want to have a car to get around and see all of the sights.

If you're a single adult without children, you'll spend about $5,149 for transportation in Ann Arbor annually. A family of four, including two working adults and two children, will pay $13,993 for transportation annually. Remember that gasoline prices in Ann Arbor are around $3.29 per gallon, significantly lower than the national average of $3.66.

Ann Arbor Food Costs

Ann Arbor offers countless dining options with a handful of authentic foods to add to your must-eat list, including oysters at Mikette, Turkish brunch at Cafe Zola, and the poutine burger at Grange Kitchen & Bar.

Eating out at an inexpensive restaurant in Ann Arbor costs an average of $12.00 for a meal, while a three-course dinner for two people at a mid-range restaurant runs $60.00 without alcohol or dessert.

Single adults without children should expect to pay at least $3,246 on food per year. However, if you have a family of two working adults and two children, you should expect to pay $9,505 per year for food.

You can anticipate paying slightly below the national average for food items from local grocery stores like Whole Foods Market, By the Pound, or Knight’s Market. For example, one gallon of regular milk costs $3.01 in the grocery store, while the national average is $3.35.

Ann Arbor Healthcare Costs

When planning your budget in Ann Arbor, account for proper medical care. A single adult without children will pay around $2,594 for medical care over the year while working adults with two children will pay $5,655. In addition, childcare for this family will cost $38,167 per year.

Ann Arbor Utilities

Winters in Ann Arbor are windy, snowy, and freezing. The coldest days of the year fall in January, with an average overnight temperature falling below 19°F. Summers are warm, with July being the hottest month with an average daytime high of 83°F.

To combat the freezing weather of winter, you'll need to account for higher utilities year-round to stay comfortable. Ann Arbor’s basic utilities include electricity, heating, cooling, water, and garbage, running $155.95 for a 915-sq. ft. apartment.

Adding on the Internet with 60 Mbps or more with unlimited data, cable/ADSL will cost you an extra $62.19 for a total of $218.14 each month.

You can get a better idea of what to expect and budget accordingly by getting an idea of how much utilities will cost in an apartment before you move.

Ann Arbor Fitness and Entertainment

Ann Arbor’s winter months make it hard to get out and exercise, meaning you might want to consider fitness club membership costs to keep fit throughout the year. The monthly fee for a fitness club membership for one adult is $39.86.

Otherwise, when weather permits, you can enjoy the beautiful landscape of Ann Arbor outdoors. Hike some of the city’s most popular trails, including the Barton Nature Area, Bird Hills Nature Center, and Argo Nature Center. Ann Arbor’s other great outdoor activities include a round at the Stonebridge Golf Club, kayaking at Argo Canoe Livery, and checking out the animals at the Creature Conservancy.

Of course, if you prefer to stay indoors, there are plenty of entertainment options throughout the city. For example, if you enjoy the local cinema, it will cost you $11.00 without snacks or drinks. You can save a few bucks by checking out one of the 161 incredible parks and facilities in Ann Arbor, with fun outdoor activities for all ages.

Other Expenses to Consider in Ann Arbor

Michigan has a flat income tax rate, and the city of Ann Arbor does not impose its city tax on top of that. In Ann Arbor, the Michigan state sales tax is 6%. Thankfully, the Washtenaw County sales tax rate and the Ann Arbor City tax rates do not add additional costs to residents.

You will also need to consider costs associated with cross-country movers, storage, hotels, and transportation for anyone moving out of state to Ann Arbor. Additional fees, including application fees, security deposits, pet deposits, and more, often come with these types of moves.

Another cost you may overlook during your big move is furnishing your home. Get more tips for decorating your apartment on a budget to help you save some money during your big move.

What Salary Do I Need to Live in Ann Arbor?

Your recommended salary in Ann Arbor depends entirely on the type of lifestyle you plan to lead. The living wage in Ann Arbor is $15.62 per hour, which is the basic wage needed to pay for essentials like housing, food, and necessities. Extra costs like dining and entertainment are not a part of the living wage when calculating your budget, so be sure to account for those as well.

The average salary index in Ann Arbor is $71,000 per year, roughly $19.18 per hour.

You can also consider the 30% rule for rent to determine your ideal salary Ann Arbor. When you follow this rule, you shouldn’t spend more than one-third, or 30%, of your gross income on rent.

For example, if your rent is close to the median for a one-bedroom apartment in Ann Arbor at $1,536, your monthly wages should be at least $5,120 a month, or an annual salary of $61,440. This recommended salary is for a fundamental lifestyle while in Ann Arbor.

The living wage, average salary, and recommended salary are three different tools for budgeting. While they can be helpful, it’s important to remember other additional living costs, such as dining, entertainment, etc. You may need to adjust your apartment search for less expensive rent, a higher salary, or possibly, both once you add in these costs.

Thankfully, the typical annual salaries for common professions in Ann Arbor are highly competitive. For example, the three highest typical annual salaries belong to Management, Architecture and Engineering, and Computer and Mathematical, respectively.

Job Market in Ann Arbor

The good news for anyone looking to call Ann Arbor home is that even though the cost of living is slightly above the national average, it offers residents a strong job market. The unemployment rate in Ann Arbor falls below the national average of 8.1%, currently at 6.5%. Additionally, the income rate is slightly higher than the national average of $53,490, currently at $56,370.

Ann Arbor has evolved into a booming economy, focused primarily on industries like education, healthcare, software, and technology. Some of the city’s major employers include the University of Michigan, Google, and Duo Security.

Final Thoughts

If you are interested in moving to Ann Arbor, a city that has been repeatedly voted as the best city to live in America, then you’ll need to determine which Ann Arbor neighborhood is best for you and learn how to apartment hunt. Then, register with Apartment List today and start checking out the hundreds of available apartments to rent in Ann Arbor!

FAQ: Cost of living in Ann Arbor

How expensive is an apartment in Ann Arbor?

A studio apartment in Ann Arbor costs $1,055. A 1 bedroom apartment in Ann Arbor costs $1,227. A 2 bedroom apartment in Ann Arbor costs $1,498. A 3 bedroom apartment in Ann Arbor costs $2,525.

What is the cheapest rent in Ann Arbor?

A one-bedroom apartment is the cheapest rent you can get in Ann Arbor, with the median rent sitting at $1,263. The average rent for a two-bedroom apartment is $1,593.

How expensive is it to live in Ann Arbor?

Living in Ann Arbor is relatively expensive. In Ann Arbor, rent averages $1,263 for a one-bedroom apartment. Transportation costs in Ann Arbor amount to $5,305 a year. Food costs $3,423 a year on average for a single resident of Ann Arbor.

How far is Ann Arbor from Detroit?

Ann Arbor is 43 miles away from Detroit. It takes 43 minutes to get to Detroit from Ann Arbor by car, 42 hours by bike, and 38 hours by foot.

How far is Ann Arbor from Columbus?

Ann Arbor is 189 miles away from Columbus. It takes 3 hours and 9 minutes to get to Columbus from Ann Arbor by car, 17 hours by bike, and 58 hours by foot.

What is the population of Ann Arbor?

According to the U.S. Census Bureau, the population of Ann Arbor is 121,536. It is the fifth most populated city in the state of Michigan.

What is a good salary in Ann Arbor?

According to the U.S. Census Bureau, the median household income in Ann Arbor is $73,276.

However, the recommended salary in Ann Arbor is $4,210 per month or $50,520 annually. This total reflects a salary that would allow a renter to live comfortably and afford to cover the median rent for a one-bedroom apartment which sits at $1,263.