In Ann Arbor, Michigan, the cost of living is 5.5% higher than the national average and 15.3% higher than the state average. It may be one of Michigan’s pricier cities, but Ann Arborites will be the first to tell you—it’s worth every penny.
Ann Arbor delivers the best of both worlds: a lively city with local pride and a friendly, small-town feel. It’s a book-lover’s haven, an arts hotspot, and a playground for anyone who loves to get outdoors.
Whether you’re drawn to the walkable downtown, the trails and parks, or the city’s unbeatable food scene, you’ll want to get the full picture of what it really costs to live there. Let’s break down the cost of living in Ann Arbor—from rent and groceries to healthcare and everything in between—and see if it’s a match.
Ann Arbor is the fifth most expensive city in Michigan, with an overall 10% higher cost of living than the average city in our database. Below, we break down the data of different cost of living categories in Ann Arbor compared to the rest of the U.S:
| Cost of Living | Ann Arbor | U.S. |
|---|---|---|
| Overall | 105.5 | 100 |
| Grocery | 102.6 | 100 |
| Health | 80.9 | 100 |
| Housing | 143.3 | 100 |
| Median Home Cost | $455,500 | $338,100 |
| Utilities | 99.3 | 100 |
| Transportation | 101 | 100 |
| Miscellaneous | 130.8 | 100 |
Rents are higher in some of Ann Arbor’s most popular and centrally located neighborhoods: Downtown Ann Arbor, Central Ann Arbor, and Broadway. Living in these neighborhoods puts you steps away from top restaurants, shops, music venues, and more.
| Neighborhood | Average One-Bedroom Rent | % Above City One-Bedroom Average |
|---|---|---|
| Downtown Ann Arbor | $2,992 | 128.05% |
| Central Ann Arbor | $2,757 | 110.14% |
| Broadway | $2,452 | 86.89% |
Ann Arbor’s least expensive rents can be found in Old Fourth Ward, South Maple, and South Ann Arbor. These neighborhoods offer a quieter pace without sacrificing access to the city’s best spots.
| Neighborhood | Average One-Bedroom Rent | % Above City One-Bedroom Average |
|---|---|---|
| Old Fourth Ward | $1,400 | 6.55% |
| South Maple | $1,384 | 5.49% |
| South Ann Arbor | $1,361 | 3.73% |
According to the latest data in October 2025, the average rent for a one-bedroom apartment in Ann Arbor sits at $1,312 a month. If you're thinking about making a move to Ann Arbor, we pulled together average rents from Rent.com to help you plan your budget.
| Bedrooms | Average Rent |
|---|---|
| Studio | $2,043 |
| One-bedroom | $1,312 |
| Two-bedroom | $1,392 |
If you’re planning a move to Ann Arbor to enjoy more of the Great Lake State, you’ll spend an average of $1,312 a month for a one-bedroom apartment. Rents have dipped slightly compared to previous years, reflecting the national cooling trend in rent prices.
If you need more space and are renting a two-bedroom apartment in Ann Arbor, you’ll spend an average of $1,392 according to the latest data in October 2025.
Not renting? Single-family homes are more expensive in Ann Arbor than in many parts of the country. Citywide, the current median home value is $455,500, which is 34.72% above the national median.
Whether you rent or pay a monthly mortgage, your housing costs will be one of your highest living expenses. It’s a good idea to determine how high they can be before you move by building a budget around your anticipated housing costs in Ann Arbor.
To figure out how much you can afford for rent, we use the standard budgeting rule that says rent should not account for more than 30% of your gross income. If your rent in Ann Arbor is $2,000, your monthly wages should be at least $6,666 a month, or an annual salary of $80,000.
MIT uses a more complex living wage calculation to arrive at a similar estimate: according to their research, the living wage in Ann Arbor for a single adult without children is $23.82 per hour, or $49,540 annually to cover basic necessities (food, shelter, health care, etc.).
If you consider the U.S. Census Bureau data, the median income in Ann Arbor is $80,603 a year or about $38.75 an hour. The median household income is a little lower in the rest of the U.S. at $81,604, or a little over $39 per hour.
Ann Arbor's utilities are reasonable compared to other cities in Michigan and the United States. You'll spend around $144.71 on a basic utility bill that includes electricity, heating, cooling, water, and garbage for a 915 sq ft apartment.
Winters in Ann Arbor are windy, snowy, and freezing, so you’ll need to factor in some breathing room into your utility bill during the winter months. 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.
You'll also need to factor in more for Internet (60 Mbps or More, Unlimited Data, Cable/ADSL), which will raise your utility bill by $76.88, totaling $221.59 a 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.
Like any other city, child care is a significant expense in Ann Arbor. Looking at MIT’s latest data, you'll spend around $13,011 for the annual cost of one child at daycare in Ann Arbor. For two children, you’ll spend $25,810.
Keep in mind that your daycare costs will vary depending on the neighborhood you choose to live in. Trendy downtown areas with a daycare shortage will have more expensive daycare costs.
If you live in the suburbs with more options, you'll probably trim down your costs. You can also get creative and work from home or trade hours with another parent or your partner to save on daycare altogether.
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. 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're a single adult without children, you'll spend about $9,811 on transportation annually. Two working adults with one child can expect to pay $14,303 per year for transportation.
Ann Arbor offers countless dining options and is known for its global cuisine to add to your must-eat list. Eating out at an inexpensive restaurant in Ann Arbor costs an average of $16 for a meal, while a three-course dinner for two people at a mid-range restaurant runs at $75.
Single adults without children can expect to pay at least $4,622 on food per year. However, if you have a family of two working adults and one child, you can expect to pay $10,531 per year for food.
Exercising in the winter is a challenge anywhere, but especially in Ann Arbor. If staying fit is the goal, a fitness club membership will cost around $56.67 per month for a single adult.
When it warms up, Ann Arbor’s parks and trails are where it’s at. Hike some of the city’s most popular trails, including the Barton Nature Area, Bird Hills Nature Center, and Argo Nature Center. Other outdoor favorites include the Stonebridge Golf Club, kayaking at Argo Canoe Livery, and checking out the animals at the Creature Conservancy.
For entertainment, a night at the movie theater will cost around $12.00 for tickets, not including snacks and drinks. Luckily, there are plenty of free things to do in Ann Arbor, like the Matthaei Botanical Gardens and the Kelsey Museum of Archaeology.
Ann Arbor is a well-rounded city with something for everyone: arts and culture, outdoor recreation, and a vibrant city scene. If that sounds like your vibe, take the Apartment List quiz to get matched with a place in Ann Arbor that fits your budget and your life. With us, you’ll spend five minutes and save 50 hours searching.
If you follow the 30% rule, you should earn at least $80,000 a year or around $38.46 an hour to rent an apartment that costs $2,000 per month. The idea is to spend only 30% of your income on rent to live comfortably. You can also consider MIT data’s living wage of $23.82 an hour, which is the bare minimum you need to live in Ann Arbor. That figure does not account for student loan repayments, entertainment, savings, or travel.
Ann Arbor is more expensive than most cities in Michigan. You'll find more affordable neighborhoods in Ann Arbor in the northern edges of the city. South Ann Arbor is among the cheapest places to live in Ann Arbor. A one-bedroom apartment costs $1,361 and a two-bedroom costs around $1,732 to rent.
Despite Ann Arbor's windy, cold, and snowy winters, utilities are reasonably priced compared to the rest of the country. You can expect to pay around $144.71 on a basic utility bill that includes electricity, heating, cooling, water, and garbage for a 915 sq ft apartment. You should also add more to your budget to pay for Internet (60 Mbps or More, Unlimited Data, Cable/ADSL), which increases your utility bill by $76.88, totaling $221.59 a month.
It depends which Ann Arbor neighborhood you live in. A one-bedroom apartment in Downtown Ann Arbor, for example, costs $2,992 a month. Further outside the city in Old Fourth Ward, rent drops down to $1,400 a month for a similar apartment.
The population of Ann Arbor is 123,851 according to the most recent U.S. Census data.
According to MIT’s Living Wage Calculator, a salary of $23.82 per hour, or $49,545.60 annually (before taxes), is enough for a single adult with no kids to cover the basic living expenses.
In unit laundry, Granite counters, Pet friendly, 24hr maintenance, Garage, Stainless steel + more
In unit laundry, Patio / balcony, Granite counters, Dishwasher, Pet friendly, Garage + more
