Overall
100.9
+0.9 above avg
2024 BEA RPP All 4 categories Federal source
Ann Arbor, MI
Cost-of-living indicators for Ann Arbor, MI, compiled from Bureau of Economic Analysis Regional Price Parities (2024 data year). Categories include All Items, Goods, Services, and Rents.
CBSA: 11460 · Data year: 2024 · Rank: #72 of 387
Ann Arbor, MI has a cost of living index of 100.9, meaning it's 0.9% more expensive than the national average. Goods cost 6.3% less, services 1.8% less, and rents are 25.3% above average. A $100K national salary has the purchasing power of $99,128 here.
What the Numbers Mean for Ann Arbor
Ann Arbor ranks #72 of 387 U.S. metro areas measured by the Bureau of Economic Analysis, placing it in the top quartile for cost. With an overall Regional Price Parity of 100.9, Ann Arbor, MI is 0.9% more expensive than the national baseline of 100. The gap between Ann Arbor's most and least expensive categories — rents at 125.3 versus goods at 93.7 — is what drives the household budget experience on the ground, not the single headline number.
Translated into dollars, a nationally-benchmarked $100,000 salary carries the purchasing power of $99,128 inside Ann Arbor, while a household needs roughly $100,880 here to match a $100K lifestyle elsewhere. Rents carry the biggest swing in the BEA formula and are indexed at 125.3 — 25.3% above the national average — so anyone weighing a move or a remote-work arbitrage should treat the housing line as the single largest variable in the equation.
Looking at the 2008-2024 trajectory, Ann Arbor's overall index has fallen by 2.8 points, improving relative affordability. For the 2024 data year, goods are indexed at 93.7 and services at 98.2, meaning everyday spending in Ann Arbor is governed more by the services and rent mix than by retail goods prices. Readers comparing multiple destinations should always pair the RPP headline with local wage data and housing costs before drawing relocation conclusions.
Ann Arbor Cost Index at a Glance
Ann Arbor all-items cost index
Regional Price Parity vs national average (100)
Ann Arbor category breakdown
BEA RPP composition by goods, services, rents, overall
Price Index Summary
Goods
93.7
-6.3 below avg
Services
98.2
-1.8 below avg
Rents
125.3
+25.3 above avg
Price Index vs National Average (100)
Overall
National avg
Index 100.9 (+0.9 vs national avg)
Goods
National avg
Index 93.7 (-6.3 vs national avg)
Services
National avg
Index 98.2 (-1.8 vs national avg)
Rents
National avg
Index 125.3 (+25.3 vs national avg)
Vertical line on each bar = national average (100)
Cost Breakdown Analysis
Above National Average
Rents +25.3% (125.3)
Overall +0.9% (100.9)
Below National Average
Goods -6.3% (93.7)
Services -1.8% (98.2)
Income Adequacy in Ann Arbor
Ann Arbor income adequacy score
$75,000 median income vs RPP 100.9
Salary Equivalent
A $100,000 salary at the national average cost of living equals:
$100,880
in Ann Arbor, MI purchasing power
$50,000 nationally
$50,440
$75,000 nationally
$75,660
$125,000 nationally
$126,100
$150,000 nationally
$151,320
$200,000 nationally
$201,760
Use the salary calculator for custom amounts.
RPP History (2008-2024)
The cost of living has been trending downward, decreasing by 2.8 points over this period.
| Year | Overall |
|---|---|
| 2008 | 103.6 |
| 2009 | 101.3 |
| 2010 | 101.1 |
| 2011 | 100.4 |
| 2012 | 100.9 |
| 2013 | 100.1 |
| 2014 | 102.6 |
| 2015 | 100.2 |
| 2016 | 98.4 |
| 2017 | 98.5 |
| 2018 | 99.3 |
| 2019 | 100.7 |
| 2020 | 98.6 |
| 2021 | 99.5 |
| 2022 | 97.9 |
| 2023 | 98.2 |
| 2024 | 100.9 |
Metros with Similar Cost of Living
These metros have an overall RPP closest to Ann Arbor, MI's index of 100.9.
Other MI Metros
Related Data for Ann Arbor
Salary Data
BLS occupation wages for Ann Arbor area
Fair Market Rents
HUD rent data for Ann Arbor metro
Crime Rates
FBI UCR crime data near Ann Arbor
School Districts
NCES school data for Ann Arbor area
ZIP Code Data
Census demographics for Ann Arbor area
Life Score
Quality-of-life composite rating
Relocation Guide
7-dimension relocation intelligence
Cost of Living Guides
Cheapest Metros to Live in 2026
Official BEA data on the most affordable areas
Most Expensive Cities: 2026 Rankings
What drives high costs and how to cope
Salary Negotiation Using RPP Data
Calculate real purchasing power for negotiations
Comparing Metro Areas
Step-by-step BEA RPP comparison walkthrough
Frequently Asked Questions
What is the cost of living in Ann Arbor, MI? ▼
Ann Arbor, MI has a Regional Price Parity (RPP) index of 100.9, meaning it is 0.9% more expensive than the national average. Goods are indexed at 93.7, services at 98.2, and rents at 125.3. It ranks #72 out of 387 U.S. metro areas by overall cost.
What salary do I need in Ann Arbor, MI to match $100K nationally? ▼
To maintain the same purchasing power as a $100,000 salary at the national average, you would need approximately $100,880 in Ann Arbor, MI. Conversely, $100K earned in Ann Arbor, MI has the purchasing power of $99,128 at the national average.
How expensive is rent in Ann Arbor, MI? ▼
Rents in Ann Arbor, MI are indexed at 125.3, which is 25.3% above the national average. This is significantly higher than typical U.S. rents.
Is Ann Arbor, MI getting more expensive? ▼
From 2008 to 2024, Ann Arbor, MI's overall cost index changed by -2.8 points (from 103.6 to 100.9). The cost of living has been declining.
What costs the most in Ann Arbor, MI? ▼
The most expensive category in Ann Arbor, MI is rents at 125.3, which is 25.3% above the national average. The most affordable category is goods at 93.7, 6.3% below average.
What metros have a similar cost of living to Ann Arbor, MI? ▼
Metros with the most similar overall cost index include Bakersfield-Delano, Tampa-St. Petersburg-Clearwater, Salt Lake City-Murray. These areas have RPP values within a few points of Ann Arbor, MI's 100.9.
Source: Bureau of Economic Analysis, Regional Price Parities by Metropolitan Statistical Area (2024). Index where national average = 100.
Related
Data sourced from official U.S. government datasets. See our methodology for details. Retrieved and formatted by PlainCost Editorial
Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from the Bureau of Economic Analysis (BEA). Consult a qualified professional before making decisions based on this data.
Read our methodology — how this data is sourced, computed, and verified.
All federal data sources used on this page
- BEA Regional Price Parities (RPP) — cost-of-living indices by metro and state. bea.gov/data/regional-price-parities
- BLS Consumer Price Index (CPI) — inflation context by metro. bls.gov/cpi
- HUD Fair Market Rents (FMR) — housing-cost component. huduser.gov/datasets/fmr
- BLS Occupational Employment and Wage Statistics (OEWS) — wage component. bls.gov/oes
- U.S. Census Bureau ACS — household income + demographics. census.gov/programs-surveys/acs
- IRS Statistics of Income (SOI) — tax-burden context. irs.gov/statistics
