How Much Does It Cost to Live in Ann Arbor?
Ann Arbor offers exceptional quality of life with above-average costs reflecting its status as a premier university town. While housing costs are higher than Michigan's average, Ann Arbor remains significantly more affordable than comparable college towns like Madison, Boulder, or Chapel Hill. The combination of excellent schools, University of Michigan resources, cultural amenities, and strong job market justifies the investment for many families.
📊 Overall Cost of Living Comparison
Ann Arbor vs. National Average (100 = National Average):
🏠 Housing Costs - Ann Arbor's Biggest Expense
Housing is the primary cost driver in Ann Arbor due to high demand from University of Michigan employees, students, and families attracted to top-rated schools. Home prices and rents are significantly higher than surrounding areas.
Average Rent (2025):
| Apartment Type | Ann Arbor Average | Premium Neighborhoods |
|---|---|---|
| Studio | $1,100 - $1,400 | $1,600 - $2,000 |
| 1-Bedroom | $1,400 - $1,800 | $2,000 - $2,600 |
| 2-Bedroom | $1,700 - $2,200 | $2,500 - $3,400 |
| 3-Bedroom | $2,100 - $2,800 | $3,000 - $4,200 |
Average Home Prices by Neighborhood (2025):
| Neighborhood | Median Home Price | Price per Sq Ft |
|---|---|---|
| Burns Park | $625,000 | $310 |
| Barton Hills | $850,000 | $380 |
| Old West Side | $525,000 | $285 |
| Eberwhite | $475,000 | $255 |
| North Ann Arbor | $450,000 | $235 |
| Pittsfield Township | $380,000 | $200 |
| Ypsilanti Border | $295,000 | $165 |
| Overall Ann Arbor Median | $400,000 | $245 |
See Affordable Neighborhoods Guide for budget-friendly options
💡 Utilities & Home Expenses
Average Monthly Utility Costs:
| Electricity (DTE Energy) | $95 - $150 |
| Natural Gas (DTE) | $45 - $130 |
| Water & Sewer | $65 - $100 |
| Internet (100+ Mbps) | $65 - $90 |
| Cable/Streaming | $50 - $150 |
| Trash Collection | Included (city service) |
💡 Seasonal Variation:
Winter heating costs (December-March) can reach $160-220/month for gas. Summer cooling (June-August) adds $130-180/month to electric bills. Budget $200-280/month for utilities in peak seasons.
Homeowner Expenses:
| Property Taxes (Annual) | $6,000 - $12,000 |
| Homeowners Insurance | $1,400 - $2,400/year |
| HOA Fees (if applicable) | $150 - $500/month |
| Lawn Care/Snow Removal | $75 - $200/month |
| Home Maintenance Reserve | $250 - $500/month |
🚗 Transportation Costs
Car Ownership (Most Common):
Most Ann Arbor residents own vehicles, though downtown and campus areas offer good walkability and bus service. AAATA (TheRide) provides public transportation throughout the area.
| Car Payment (Average) | $450 - $650/month |
| Auto Insurance | $180 - $320/month |
| Gasoline | $160 - $260/month |
| Maintenance & Repairs | $80 - $160/month |
| Parking (Downtown/Campus) | $50 - $250/month |
Total Monthly Car Costs: $920 - $1,640
Public Transportation:
| AAATA (TheRide) Monthly Pass | $75 |
| U-M Faculty/Staff/Student | Free (included in benefits) |
| Day Pass | $3.50 |
🛒 Food & Groceries
Monthly Grocery Budget:
| Single Person | $300 - $450 |
| Couple | $550 - $750 |
| Family of 4 | $800 - $1,200 |
Dining Out (Per Person):
| Fast Food Meal | $9 - $14 |
| Casual Restaurant | $18 - $30 |
| Mid-Range Dinner | $35 - $60 |
| Fine Dining | $80 - $200+ |
| Coffee (Specialty) | $5 - $7 |
Where to Shop:
- Budget-Friendly: Aldi, Meijer, Costco, Trader Joe's
- Mid-Range: Kroger, Whole Foods, Plum Market
- Specialty: People's Food Co-op, Argus Farm Stop, Ann Arbor Farmers Market
📋 Sample Monthly Budgets
Single Professional (Renting)
| Rent (1-BR, near campus) | $1,600 |
| Utilities | $170 |
| Internet/Phone | $130 |
| Car Payment | $500 |
| Auto Insurance | $220 |
| Gas | $200 |
| Groceries | $400 |
| Dining Out | $350 |
| Health Insurance | $500 |
| Entertainment | $250 |
| Gym | $60 |
| Misc/Savings | $600 |
| TOTAL | $4,980 |
Recommended Salary: $75,000+
Couple (Homeowners, No Kids)
| Mortgage (Eberwhite) | $2,600 |
| Property Tax | $580 |
| Homeowners Insurance | $160 |
| Utilities | $280 |
| Internet/Cable | $160 |
| 2 Cars (payment/insurance/gas) | $1,700 |
| Groceries | $700 |
| Dining Out | $500 |
| Health Insurance | $900 |
| Home Maintenance | $350 |
| Entertainment | $400 |
| Misc/Savings | $1,000 |
| TOTAL | $9,330 |
Recommended Combined Income: $140,000+
Family of 4 (Homeowners)
| Mortgage (North Ann Arbor) | $2,400 |
| Property Tax | $550 |
| Homeowners Insurance | $180 |
| Utilities | $320 |
| Internet/Cable | $170 |
| 2 Cars (payment/insurance/gas) | $1,800 |
| Groceries | $1,000 |
| Dining Out | $450 |
| Health Insurance | $1,400 |
| Childcare (2 kids, part-time) | $1,400 |
| Home Maintenance | $400 |
| Entertainment/Activities | $500 |
| Misc/Savings | $800 |
| TOTAL | $11,370 |
Recommended Combined Income: $170,000+
📊 Ann Arbor vs. Other Cities
How Ann Arbor Stacks Up:
| City | Median Rent (1-BR) | Median Home Price | Overall COL Index |
|---|---|---|---|
| Ann Arbor | $1,600 | $400,000 | 122 |
| Detroit | $1,100 | $180,000 | 85 |
| Madison, WI | $1,550 | $425,000 | 124 |
| Boulder, CO | $2,100 | $750,000 | 152 |
| Chapel Hill, NC | $1,450 | $480,000 | 118 |
Ann Arbor offers comparable amenities to pricier university towns at better value!
Protect Your Ann Arbor Home Investment
With Ann Arbor's higher home values, protecting your investment with proper roof maintenance is crucial. Elite Roofing has served Ann Arbor homeowners for 25+ years with expert care for both historic and modern homes.
Free Services to Save You Money:
- ✅ Annual roof inspection - catch issues before major expense
- ✅ Insurance claim assistance - maximize your coverage
- ✅ Historic home expertise - preserve your investment
- ✅ Preventive maintenance - extend roof lifespan