Skyline of Ann Arbor
Cost of Living: 108.5 121,536

Ann Arbor, MI, US

College town with University of Michigan, Big Ten sports, and intellectual energy.

Updated September 12, 2026

Overview

Ann Arbor is a city in MI with a population of 121,536. College town with University of Michigan, Big Ten sports, and intellectual energy. Housing costs are close to the national average. Gardening thrives here — the 5a growing zone supports Cool — many vegetables, some fruit trees. A large share of residents hold a bachelor’s degree or higher. Reported crime rates are relatively low. The population skews young, with a median age of 27.7.

Last updated: September 12, 2026

Cost of Living 108.5

Above Average vs US Avg (100)

Housing Index 118.2

Above Average

Median Income $65,000

Household income

Unemployment 2.8%

Job market health

Ann Arbor vs US Average

Cost of Living
Ann Arbor: 108.5
US Avg: 100
Housing Index
Ann Arbor: 118.2
US Avg: 100
State Income Tax
Ann Arbor: 4.25%
US Avg: ~5%

Taxes

  • State Income Tax: 4.2%
  • Sales Tax: 6.0%

Economy & Jobs

  • Median Income: $65,000
  • Unemployment: 2.8%
  • Population: 121,536

Climate

  • Sunny Days: 178/year
  • Summer High: 83°F
  • Winter Low: 17°F
  • Farming Zone: USDA Zone 5a

Housing

  • Median Home: $420,000
  • 1BR Rent: $1550/mo

Not sure this is the right city?

Take our 2-minute quiz to discover the best cities for your lifestyle and budget.

Take the Quiz

Cost of Living

Ann Arbor's cost of living index is 108.5 (US average = 100).

CategoryAnn ArborNational AverageDifference
Overall108.5100+8.5%
Housing118.2100+18.2%

Data source: Council for Community and Economic Research (C2ER), 2026

Housing Market

MetricValue
Median Home Price$420,000
Median Rent (1BR)$1550/mo
Median Rent (2BR)$1,938/mo
Price per Sq Ft$280

Data source: Zillow Research, 2026

True Cost of Home Ownership

True Cost of Home Ownership

See what you'll really pay over 30 years

$
%
$90,000 down
%
%
$

Utilities

Estimated monthly utility costs for a typical household in Ann Arbor:

UtilityEstimated Monthly CostNotes
Electricity$125Based on ~900 kWh/month typical US household usage
Heating & Cooling$81Estimated based on local climate. Gas or electric
Cooling (AC)N/AEstimated based on local climate and electricity rates
Water$55Includes sewer
Internet (100+ Mbps)$55Broadband average
Garbage / TrashIncluded in taxesMunicipal service (covered by property taxes)
Total Utilities$316Monthly estimate (including heating & cooling)

Data sources: U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow

Remote Work Score

Ann Arbor scores —/100 for remote work readiness:

Cost of Living
— 108.5
Rent
— $1550
Sunny Days
— 178
Tax
— 4.25%
Unemployment
— 2.8%
Climate
— 83°F / 17°F
Safety
— N/A
Population
— 121,536
Internet Speed
— 200 Mbps

Climate

Ann Arbor has a varied climate with distinct seasons.

MonthAvg HighAvg LowRainfall
January37°F17°F2.5"
April68°F32°F2.8"
July83°F58°F1.5"
October63°F35°F2.2"
USDA Zone 5a

Cool — many vegetables, some fruit trees

Natural Hazards

Ann Arbor faces the following natural hazards:

Blizzard High Risk

Severe winter storms and blizzards.

Wildfire Moderate Risk

Wildfire risk in forested areas.

Tornado Moderate Risk

Tornado risk in southern part of state.

Flood Moderate Risk

Great Lakes coastal flooding.

Avalanche Moderate Risk

Upper Peninsula with avalanches.

Based on historical records and geographic risk assessment.

Taxes

  • State Income Tax: 4.25%
  • Sales Tax: 6%
  • Property Tax: ~1.81% of assessed value

Economy & Jobs

Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 2.8%.

Crime & Safety

Crime rates in Ann Arbor per 100,000 residents:

302.5
Violent Crime
1,715.7
Property Crime

Data source: FBI Uniform Crime Reporting

Schools & Education

75/100
School Quality Score
Better than 88% of US cities
?
44
Total Schools
4.6:1
Student:Teacher
90.8%
Free/Reduced Lunch

Data source: National Center for Education Statistics (NCES)

Universities & Higher Education

3
Universities
#16
Top University Rank
1
Top 500 Universities
Top-Ranked University University of Michigan, Ann Arbor

Data source: Center for World University Rankings (CWUR) & World Universities Database

Demographics

The population of Ann Arbor is diverse. The figures below show the ethnic, educational, and religious composition of the local population.

Ethnicity

Asian
15.1%
Black or African American
7.0%
Hispanic or Latino
5.4%
Native American
0.2%
Native Hawaiian or Pacific Islander
0.0%
Other
0.5%
Two or more races
5.0%
White
66.7%

Education

Bachelor's degree or higher
77.7%
High school graduate
7.0%
Less than high school
2.4%
Some college
12.9%

Religion

Christian
65.0%
Other
7.0%
Unaffiliated
28.0%

Data source: US Census Bureau American Community Survey (ACS) (2023)

Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.

Frequently Asked Questions

What is the cost of living in Ann Arbor, MI, US?

The cost of living index in Ann Arbor is 108.5, which is Higher the US national average of 100.

How much does it cost to buy a home in Ann Arbor?

The median home price in Ann Arbor is $420,000. The housing index is 118.2.

What is the average rent for a 1-bedroom apartment?

The average rent for a 1-bedroom apartment in Ann Arbor is approximately $1550/mo.

Does Ann Arbor, MI have income tax?

Ann Arbor is in MI, which has an income tax rate of 4.25%.

What is the climate like in Ann Arbor?

Ann Arbor enjoys approximately 178 sunny days per year. Summer highs reach around 83°F, while winter lows can drop to around 17°F.

Relocation Guides

Data Sources

  • Cost of Living: Council for Community and Economic Research (C2ER), 2026
  • Housing Data: Zillow Research, 2026
  • Income & Employment: US Census Bureau American Community Survey, 2024
  • Utilities U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow

Data last updated: September 13, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.