Cost of Living in Michigan: Cities Where Household Expenses are Highest and Lowest in 2024
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 $1,897 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Phone, 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 37th most expensive state in the US for household bills
According to doxo’s COBI report, Michigan is ranked as the 37th most expensive state in the U.S. for household bills, making it the least expensive state for these expenses.
At $22,767 per year, Michigan’s household expenses, on average, are 11% lower than the US average of $25,513.
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 32% 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 average and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national average. The COBI for Michigan is 108.
- Average Bill Cost per Household: $1,897 per month
- Cost of Bills Index(COBI): 89
- doxoINSIGHTS State Rank: #37
- Percent of Household Income Used for Bills: 32%
- Compared to the National Average: 11% lower
Michigan Household Expenses are 11% Lower Than the National Average
The average Michigan household pays $1,897 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 average monthly payment for alarm and security bills in Michigan is $83, compared to the national average of $85, making it 2% lower than average.
Monthly mortgage bills are the most significant of the 10 most common bills for Michigan residents. The average monthly mortgage payment is $1,296, compared to the national average of $1,402, making it 8% less expensive.
Average Michigan Household Bill Spending
| Bill Category | Average Michigan Monthly Bill | National Average Monthly Bill | Michigan Percent +/- National Average |
| Mortgage | $1,296 | $1,402 | 8% lower |
| Rent | $1,053 | $1,300 | 19% lower |
| Auto Loan | $452 | $496 | 9% lower |
| Utilities | $324 | $362 | 10% lower |
| Auto Insurance | $192 | $209 | 8% lower |
| Health Insurance | $104 | $114 | 9% lower |
| Mobile Phone | $120 | $121 | 1% lower |
| Cable & Internet | $122 | $122 | The same |
| Life Insurance | $84 | $87 | 3% lower |
| Alarm & Security | $83 | $85 | 2% lower |
| Total | $1,897 | $2,126 | 11% lower |
*Household Bill Pay Expense averages 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 an average of $3,040 per month. The Cost of Bills Index (COBI) for Birmingham is 143, meaning the average cost of bills in this city is 43% higher than the national average.
In proportion to household income, monthly bills in Birmingham makeup 24% of the average annual household income of $151,556.
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.
10 Most Expensive Michigan Cities for Household Bills
| Rank | City | Average Income | Monthly Bill Expenses Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Average | Percent of Household Income Used for Bills |
| 1 | Birmingham | $151,556 | $3,040 | 143 | 43% higher | 24% |
| 2 | Bloomfield Hills | $158,165 | $2,931 | 138 | 38% higher | 22% |
| 3 | Ada | $168,135 | $2,797 | 132 | 32% higher | 20% |
| 4 | Dexter | $130,333 | $2,783 | 131 | 31% higher | 26% |
| 5 | Brighton | $106,156 | $2,691 | 127 | 27% higher | 30% |
| 6 | Northville | $133,990 | $2,655 | 125 | 25% higher | 24% |
| 7 | West Bloomfield | $124,106 | $2,640 | 124 | 24% higher | 26% |
| 8 | Ann Arbor | $88,078 | $2,589 | 122 | 22% higher | 35% |
| 9 | Novi | $114,234 | $2,524 | 119 | 19% higher | 27% |
| 10 | Franklin | $171,776 | $2,513 | 118 | 18% higher | 18% |
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Harrison has the lowest cost of living in Michigan for household bills
Out of 198 cities, Harrison is the most affordable place in Michigan, with residents paying $1,253 on average for household bills, accounting for 37% of annual income of $41,045. The Cost of Bills Index (COBI) for Harrison is 59, meaning the average cost of bills in this city is 41% below the national average.
Alpena is the second most affordable city in Michigan, with residents paying $1,396 per month on average.
Also on the list of the 10 least expensive cities in Michigan are Houghton Lake ($1,408), Albion ($1,420) and Hamtramck ($1,428).
10 Most Affordable Michigan Cities for Household Bills
| Rank | City | Average Income | Monthly Bill Expense Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Average | Percent of Household Income Used for Bills |
| 189 | Gaylord | $63,549 | $1,538 | 72 | 28% lower | 29% |
| 190 | Baldwin | $35,882 | $1,533 | 72 | 28% lower | 51% |
| 191 | Dowagiac | $54,415 | $1,529 | 72 | 28% lower | 34% |
| 192 | Muskegon | $58,399 | $1,520 | 71 | 29% lower | 31% |
| 193 | Cheboygan | $58,163 | $1,496 | 70 | 30% lower | 31% |
| 194 | Hamtramck | $37,309 | $1,428 | 67 | 33% lower | 46% |
| 195 | Albion | $51,283 | $1,420 | 67 | 33% lower | 33% |
| 196 | Houghton Lake | $50,948 | $1,408 | 66 | 34% lower | 33% |
| 197 | Alpena | $48,094 | $1,396 | 66 | 34% lower | 35% |
| 198 | Harrison | $41,045 | $1,253 | 59 | 41% lower | 37% |
*Household Bill Pay Expense averages 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.