Overall
100.9
Above avg
Metro cost profile · 2024 BEA RPP
Ann Arbor, MI
Cost-of-living indicators for Ann Arbor, MI, from Bureau of Economic Analysis Regional Price Parities, overall, goods, services, and rents vs the U.S. average of 100.
- 100.9
- Overall RPP
- #72
- of 387 metros
- 125.3
- Rents RPP
- $99K
- $100K national buys
Ann Arbor ranks #72 of 387 U.S. metros by cost, and its overall price index has fallen 2.8 points since 2008.
- falling since 2008
- similar cost to Bakersfield-Delano
The verdict
Ann Arbor is more expensive than 81% of U.S. metros, an overall cost index of 100.9, 0.9% above the national average, led by rents at 125.3.
- top 19%
- by overall cost, nationwide
- 93.7
- goods RPP, tradable items
- 98.2
- services RPP, labor-priced
A $100,000 national salary carries the purchasing power of about $99,128 here; matching a $100K lifestyle takes roughly $100,880.
RPP History (2008-2024)
The cost of living has been trending downward, decreasing by 2.8 points over this period. The largest single-year move was in 2024, when the index jumped 2.7 points from the year before.
Ann Arbor overall RPP, 2008-2024
Every year on record, national average = 100
| 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 |
Latest BEA release change
What changed from 2023 to 2024
Ann Arbor's overall RPP rose +2.7 points, from 98.2 in 2023 to 100.9 in 2024. The largest category movement was rents, changing from 112.1 to 125.3. This is a relative change against the national benchmark, not a household's dollar bill.
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.
Affordability score
F
8/100
How far the median local paycheck goes here, combining income and housing cost
Purchasing power
Not reported
Housing affordability F
8th percentile
A weighted composite (60% purchasing power, 40% housing affordability) percentile-ranked against every other tracked metro; a missing input redistributes its weight rather than deflating the score. Sources: Census ACS 5-Year 2023 (income) + BEA Regional Price Parities 2024 (cost). Vintages differ by design; see methodology.
Ann Arbor vs every U.S. metro
Where this metro sits in the national cost distribution
101 Top 19% higher than 81% of 387 US metros
Each bar is a band; taller bars hold more US metros. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source U.S. Bureau of Economic Analysis, Regional Price Parities · 2024
Ann Arbor cost breakdown
BEA RPP by category, 100 = national average
- Rents
Rents
125.3 RPP
- Services
Services
98.2 RPP
- Overall
Overall
100.9 RPP
- Goods
Goods
93.7 RPP
What this shows Ann Arbor's cost structure is housing-led: rents at 125.3 depart furthest from 100, while goods sits at 93.7. This is a rent-sensitive profile, not a claim that every local expense moves together.
Goods vs. housing, where Ann Arbor's cost comes from
Metros near Ann Arbor's overall cost, plotted by their goods price (horizontal) and housing price (vertical). Same headline RPP, very different structures.
Read the chart as text
- Ann Arbor (Ann Arbor, this metro): goods RPP 93.7, rents RPP 125.3
- Bakersfield: goods RPP 105.2, rents RPP 90.3
- Tampa: goods RPP 95.5, rents RPP 125.8
- Salt Lake City: goods RPP 96.4, rents RPP 123.3
- Burlington: goods RPP 97.3, rents RPP 103.8
- Charleston: goods RPP 96.3, rents RPP 119.8
- Lexington Park: goods RPP 99.7, rents RPP 103.8
Price Index Summary
Goods
93.7
Below avg
Services
98.2
Below avg
Rents
125.3
Expensive
Housing-led cost profile
How Ann Arbor's cost structure works
Housing is the defining pressure in Ann Arbor: rents index at 125.3, the furthest component above the national benchmark. The overall index of 100.9 places Ann Arbor in the top quartile for cost; the rent line explains why a similar headline RPP can still require a different housing budget.
Across all reported metros, the closest component-profile matches are Phoenix-Mesa-Chandler, AZ, Reno, NV, Tampa-St. Petersburg-Clearwater, FL. They resemble Ann Arbor across goods, services, and rents together, so they are stronger structure peers than a place selected only because its overall RPP happens to be nearby.
Across 2008-2024, Ann Arbor's overall index has fallen by 2.8 points. This is a relative price-level history, not a prediction or a personal affordability recommendation; pair it with current local wages and housing options before making a decision.
MI-relative analysis
Goods prices places Ann Arbor, MI near the bottom of MI's metros
Among the 15 MI metros PlainCost tracks with reported goods prices data, Ann Arbor, MI ranks #2 - the 0th percentile within the state. This is a different, narrower cut than the nationwide rank above: it compares Ann Arbor, MI only against its own state's metros, not the full US field.
Goods prices
#2 of 15
0th percentile in MI
Services prices
#3 of 15
80th percentile in MI
Rent prices
#1 of 15
93rd percentile in MI
Ranked by raw value (highest first); a higher rank is not automatically "more expensive is worse", see the national comparison above for direction context. This is a comparison within MI only, not a livability score.
Nationwide metros with similar overall cost or rent prices
Two BEA RPP-derived peer sets for Ann Arbor, MI: nearest metros by overall regional price parity and by rents RPP. These are cross-state neighborhoods, not the in-state metro list below.
Similar overall RPP
Nearest metros by overall regional price parity (100.9 here).
Similar rents RPP
Nearest metros by rents regional price parity (125.3 here).
Other MI Metros
Detroit-Warren-Dearborn, MI 100.3 Grand Rapids-Wyoming-Kentwood, MI 95.5 Lansing-East Lansing, MI 95.0 Kalamazoo-Portage, MI 94.8 Monroe, MI 93.5 Traverse City, MI 93.4
View all MI metros → Cheapest in MI → Most expensive in MI →
Metros with Similar Cost of Living
These metros have an overall RPP closest to Ann Arbor, MI's index of 100.9.
Showing the 6 closest of 387 metro areas tracked nationally.
Decision peers
Metros with a similar cost mix
These metros are closest to Ann Arbor's combined goods, services, and rents profile. They may not have the same overall RPP, but their price pressures are shaped in a similar way.
Phoenix-Mesa-Chandler, AZ
Goods 95.0 · Services 93.3 · Rents 121.2 Reno, NV
Goods 96.3 · Services 89.3 · Rents 123.5 Tampa-St. Petersburg-Clearwater, FL
Goods 95.5 · Services 88.5 · Rents 125.8 North Port-Bradenton-Sarasota, FL
Goods 96.2 · Services 88.2 · Rents 128.0 Orlando-Kissimmee-Sanford, FL
Goods 96.2 · Services 87.2 · Rents 123.4 Naples-Marco Island, FL
Goods 96.2 · Services 87.8 · Rents 129.4
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Compare to Other Metros
Cost of living guides →, cheapest and most-expensive metro rankings, salary negotiation with RPP data, and step-by-step comparison walkthroughs.
What this means for Ann Arbor
How to read Ann Arbor's cost of living before a move, a job offer, or a budget.
- Budget to local prices, not headline pay, a $100K national salary spends like about $99,128 in Ann Arbor. Salary calculator
- Start with rents: it indexes at 125.3, the largest departure from the national benchmark in this metro's BEA cost mix. Compare it with the other components before treating the overall RPP as a complete household budget.
- Compare Ann Arbor head-to-head against a specific destination before you decide. Compare metros
RPP is BEA's annual price-level benchmark for the data year shown, not a live market quote. Pair it with current local wages and housing costs before deciding.
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 priciest category in Ann Arbor, MI is rents at 125.3, 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.
Data sources
- BEA Regional Price Parities (RPP), the cost-of-living indices shown on this page
- U.S. Census Bureau, American Community Survey (ACS), gross-rent observations behind the rents component
- BLS Consumer Price Index (CPI), goods and services price relatives
- BLS Occupational Employment and Wage Statistics (OEWS), labor-driven services component
- HUD Fair Market Rents (FMR), 40th-percentile rent cross-reference
Every figure on PlainCost is rendered directly from BEA Regional Price Parity source data, no number is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, our changelog, or report a data error. Data current as of 2026-08-11. Rankings measure the published cost-of-living index only; we don't recommend where to live or rate any metro's quality of life.