Cost of Living in Michigan: Cities Where Household Expenses are Highest and Lowest in 2025
What is the cost of living in Michigan? doxo breaks down key insights about Michigan’s household expenses, with a close look into how bills differ between towns and cities across the state.
According to doxo’s The Cost of Bills Index™ (COBI), the average household in Michigan pays $1,731 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Internet, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.
The data sheds light on Michigan’s cost of living through other metrics as well. For example, the “percent of household income” data point shows what percentage of their household income residents spend on bills each month.
By leveraging these tools, residents can gain a clearer understanding of their household expenses and optimize their financial planning.
Michigan ranks as the 32nd most expensive state in the US for household bills
According to doxo’s COBI report, Michigan is ranked as the 32nd most expensive state in the U.S. for household bills.
At $20,772 per year, Michigan’s household expenses, on average, are 16% lower than the US median of $24,695.
Absolute dollar amounts don’t tell the full story, however. doxo’s “Percentage of Household Income” data provides a more proportional look at bill spending in a particular location. Michigan households spend 28% of their income on bills.
COBI helps consumers understand how much it costs to live in one area as compared to another as it relates to the most common household bills. For COBI, the number 100 represents the national median and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national median. The COBI for Michigan is 84.
- Median Bill Cost per Household: $1,731 per month
- Cost of Bills Index(COBI): 84
- doxoINSIGHTS State Rank: #32
- Percent of Household Income Used for Bills: 28%
- Compared to the National Median: 16% lower
Michigan Household Expenses are 16% Lower Than the National Median
The average Michigan household pays $1,735 per month in the 10 most common household bills. The least expensive of these are alarm and security bills.
On the lowest end of the spectrum, the median monthly payment for alarm and security bills in Michigan is $66, compared to the national median of $74, making it 11% lower than the national median.
Monthly mortgage bills are the most significant of the 10 most common bills for Michigan residents. The median monthly mortgage payment is $1,306, compared to the national median of $1,775, making it 26% less expensive.
Median Michigan Household Bill Spending
| Bill Category | Median Michigan Monthly Bill | National Median Monthly Bill | Michigan Percent +/- National Median ($2,126) |
| Mortgage | $1,306 | $1,775 | 26% lower |
| Rent | $1,103 | $1,453 | 13% lower |
| Auto Loan | $438 | $470 | 7% lower |
| Auto Insurance | $141 | $105 | 34% higher |
| Health Insurance | $50 | $72 | 31% lower |
| Mobile Phone | $95 | $96 | 1% lower |
| Cable & Internet | $123 | $121 | 2% higher |
| Life Insurance | $58 | $60 | 3% lower |
| Alarm & Security | $66 | $74 | 11% lower |
| Total | $1,731 | $2,065 | 16% lower |
*Household Bill Pay Expense medians shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Birmingham has the highest cost of living in Michigan for household bills
Residents of Birmingham pay the highest household bills in the state of Michigan, at a median of $3,122 per month. The Cost of Bills Index (COBI) for Birmingham is 151, meaning the median cost of bills in this city is 51% higher than the national median.
In proportion to household income, monthly bills in Birmingham make up 25% of the median annual household income of $152,443.
Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.
5 Most Expensive Michigan Cities for Household Bills
| Rank | City | Median Income | Monthly Bill Expenses Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Median | Percent of Household Income Used for Bills |
| 1 | Birmingham | $152,443 | $3,122 | 151 | 51% higher | 25% |
| 2 | Hadley | $108,859 | $2,821 | 137 | 37% higher | 31% |
| 3 | Hickory Corners | $115,802 | $2,746 | 133 | 33% higher | 28% |
| 4 | Bloomfield Hills | $159,835 | $2,737 | 132 | 32% higher | 21% |
| 5 | Huntington Woods | $188,229 | $2,676 | 130 | 30% higher | 17% |
*Household Bill Pay Expense medians shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Harbert has the lowest cost of living in Michigan for household bills
Harbert is the most affordable place in Michigan, with residents paying $823 on average for household bills, accounting for 16% of annual income of $60,370. The Cost of Bills Index (COBI) for Harbert is 40, meaning the median cost of bills in this city is 60% below the national median.
Houghton Lake Heights is the second most affordable city in Michigan, with residents paying $889 per month on average.
Also on the list of the 5 least expensive cities in Michigan are Long Lake ($895), Palo ($907) and Ramsay ($983).
5 Most Affordable Michigan Cities for Household Bills
| Rank | City | Median Income | Monthly Bill Expense Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Median | Percent of Household Income Used for Bills |
| 1 | Harbert | $60,370 | $823 | 40 | 60% lower | 16% |
| 2 | Houghton Lake Heights | $71,518 | $889 | 43 | 57% lower | 15% |
| 3 | Long Lake | $47,768 | $895 | 43 | 57% lower | 22% |
| 4 | Palo | $34,091 | $907 | 44 | 56% lower | 32% |
| 5 | Ramsay | $49,750 | $983 | 48 | 52% lower | 24% |
*Household Bill Pay Expense medians shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Some individuals might be considering moving from a more expensive city to a less expensive one. For those making such decisions, doxoINSIGHTS can be a valuable resource. It allows consumers to compare household expenses in Michigan with average bills in various cities and states nationwide.