Ann Arbor, Michigan
Living in Ann Arbor, Michigan is about 8% more expensive than the national average, with a cost of living index of 108 (US = 100). Typical rent is $1,917 a month, about the same as the national figure of $1,932, and regular gas costs $4.08 a gallon versus $3.98 nationally as of November 11, 2026. Rent, gas, groceries, electricity and car insurance take about 42% of the area's $87,156 median household income.
Key Numbers
Gas (Regular)
$4.08
National: $3.98
Avg Rent (All)
$1,917
National: $1,932
Grocery Inflation
1.77%
Year-over-year
Fast Food Avg
$10.50
Combo meal
Electricity
22.99¢
per kWh · ~$207/mo
Car Insurance
$224/mo
$2,691/yr
Median Household Income
$87,156
41.8% goes to essentials
Car Insurance
Avg $2,691 in Ann Arbor. Compare rates:
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Avg rent $1,917/mo in Ann Arbor. Browse listings:
Grocery Prices
Grocery Prices — 2000 to Present
National BLS averages · submit local prices below ↓
Eggs (dozen)
Bird flu volatility
$0.97 in 2000 → $2.32 BLS avg
$4.49 @ Kroger - Plymouth Nixon (Nov 2026)
Milk (gallon)
$2.79 in 2000 → $4.10 BLS avg
$3.39 @ Kroger - Plymouth Nixon (Nov 2026)
Ground Beef (lb)
$1.48 in 2000 → $6.75 BLS avg
$6.49 @ Kroger - Plymouth Nixon (Nov 2026)
Bread (loaf)
$0.91 in 2000 → $1.86 BLS avg
$4.79 @ Kroger - Plymouth Nixon (Nov 2026)
Chicken Breast (lb)
$1.06 in 2000 → $2.03 BLS avg
$4.89 @ Kroger - Plymouth Nixon (Nov 2026)
Butter (lb)
$3.98 BLS avg
$4.99 @ Kroger - Plymouth Nixon (Nov 2026)
Bacon (lb)
$2.75 in 2000 → $6.69 BLS avg
$5.32 @ Kroger - Plymouth Nixon (Nov 2026)
Cheddar Cheese (lb)
$3.84 in 2000 → $6.13 BLS avg
$4.00 @ Kroger - Plymouth Nixon (Nov 2026)
Pasta (lb)
$0.88 in 2000 → $1.38 BLS avg
$1.69 @ Kroger - Plymouth Nixon (Nov 2026)
Rice (5 lb)
$2.50 in 2000 → $5.50 BLS avg
$4.72 @ Kroger - Plymouth Nixon (Nov 2026)
Coffee (12 oz)
$2.65 in 2000 → $6.94 BLS avg
$9.99 @ Kroger - Plymouth Nixon (Nov 2026)
Orange Juice (64 oz)
Citrus shortage
$5.42 estimate
Potatoes (5 lb)
$1.96 in 2000 → $4.95 BLS avg
$3.29 @ Kroger - Plymouth Nixon (Nov 2026)
Apples (3 lb)
$5.20 estimate
$3.99 @ Kroger - Plymouth Nixon (Nov 2026)
Tomatoes (lb)
$1.44 in 2000 → $2.08 BLS avg
$1.79 @ Kroger - Plymouth Nixon (Nov 2026)
Lettuce (head)
$0.75 in 2000 → $1.96 BLS avg
Cooking Oil (48 oz)
$7.76 estimate
$3.79 @ Kroger - Plymouth Nixon (Nov 2026)
Yogurt (32 oz)
$4.94 estimate
$6.79 @ Kroger - Plymouth Nixon (Nov 2026)
Cereal (family size)
$6.20 estimate
$5.00 @ Kroger - Plymouth Nixon (Nov 2026)
Frozen Pizza
$8.65 estimate
$4.99 @ Kroger - Plymouth Nixon (Nov 2026)
| Item | 2000 | 2005 | 2010 | 2015 | 2020 | 2022 | 2026 | Since 2000 |
|---|---|---|---|---|---|---|---|---|
| Eggs (dozen)Bird flu volatility$4.49 @ Kroger - Plymouth Nixon (Nov 2026) | $0.97 | $1.21 | $1.79 | $2.11 | $1.46 | $1.93 | $2.32 | +137.9% |
| Milk (gallon)$3.39 @ Kroger - Plymouth Nixon (Nov 2026) | $2.79 | $3.30 | $3.24 | $3.76 | $3.25 | $3.79 | $4.10 | +47.3% |
| Ground Beef (lb)$6.49 @ Kroger - Plymouth Nixon (Nov 2026) | $1.48 | $2.19 | $2.28 | $4.24 | $3.89 | $4.55 | $6.75 | +355.5% |
| Bread (loaf)$4.79 @ Kroger - Plymouth Nixon (Nov 2026) | $0.91 | $1.00 | $1.36 | $1.48 | $1.35 | $1.55 | $1.86 | +105.2% |
| Chicken Breast (lb)$4.89 @ Kroger - Plymouth Nixon (Nov 2026) | $1.06 | $1.03 | $1.26 | $1.55 | $1.41 | $1.62 | $2.03 | +91.3% |
| Butter (lb)$4.99 @ Kroger - Plymouth Nixon (Nov 2026) | — | — | — | — | $3.86 | $3.67 | $3.98 | -4.2% since 2018 |
| Bacon (lb)$5.32 @ Kroger - Plymouth Nixon (Nov 2026) | $2.75 | $3.37 | $3.63 | $5.59 | $5.50 | $7.22 | $6.69 | +143.1% |
| Cheddar Cheese (lb)$4.00 @ Kroger - Plymouth Nixon (Nov 2026) | $3.84 | $4.21 | $4.72 | $5.40 | $5.20 | $5.32 | $6.13 | +59.6% |
| Pasta (lb)$1.69 @ Kroger - Plymouth Nixon (Nov 2026) | $0.88 | $0.94 | $1.15 | $1.26 | $1.23 | $1.12 | $1.38 | +57.1% |
| Rice (5 lb)$4.72 @ Kroger - Plymouth Nixon (Nov 2026) | $2.50 | $2.98 | $3.77 | $3.46 | $3.58 | $4.16 | $5.50 | +120.6% |
| Coffee (12 oz)$9.99 @ Kroger - Plymouth Nixon (Nov 2026) | $2.65 | $2.29 | $2.86 | $3.55 | $3.13 | $3.85 | $6.94 | +161.3% |
| Orange Juice (64 oz)Citrus shortageLocal estimate | — | — | — | — | — | $3.72 | $5.42 | +45.7% since 2022 |
| Potatoes (5 lb)$3.29 @ Kroger - Plymouth Nixon (Nov 2026) | $1.96 | $2.29 | $2.81 | $3.34 | $4.01 | $3.96 | $4.95 | +152.6% |
| Apples (3 lb)Local estimate$3.99 @ Kroger - Plymouth Nixon (Nov 2026) | — | — | — | — | — | $4.49 | $5.20 | +15.8% since 2022 |
| Tomatoes (lb)$1.79 @ Kroger - Plymouth Nixon (Nov 2026) | $1.44 | $1.66 | $1.84 | $2.09 | $2.22 | $1.89 | $2.08 | +44.4% |
| Lettuce (head) | $0.75 | $0.82 | $0.90 | $1.17 | $1.34 | — | $1.96 | +162.3% |
| Cooking Oil (48 oz)Local estimate$3.79 @ Kroger - Plymouth Nixon (Nov 2026) | — | — | — | — | — | $5.54 | $7.76 | +40.1% since 2022 |
| Yogurt (32 oz)Local estimate$6.79 @ Kroger - Plymouth Nixon (Nov 2026) | — | — | — | — | — | $4.15 | $4.94 | +19.0% since 2022 |
| Cereal (family size)Local estimate$5.00 @ Kroger - Plymouth Nixon (Nov 2026) | — | — | — | — | — | $4.79 | $6.20 | +29.4% since 2022 |
| Frozen PizzaLocal estimate$4.99 @ Kroger - Plymouth Nixon (Nov 2026) | — | — | — | — | — | $6.31 | $8.65 | +37.1% since 2022 |
Dining & Restaurants
Fast Food Meal
$10.50
Casual Dining
$20.50
Monthly Spend
$278
+5% YoYChain Restaurant Meal Prices — 2022 vs. Today
Combo meal / typical order for one
McDonald's
2022: $6.50
$10.20
+56.9%Wendy's
2022: $7.30
$11.20
+53.4%Chipotle
2022: $8.20
$11.80
+43.9%Starbucks
2022: $3.70
$5.10
+37.8%Eating out more? Save on groceries with Ibotta and cook at home more often.
Looking for an Apartment in Ann Arbor?
Average 1BR: $1,572/mo · 2BR: $2,262/mo
Local Workforce
2024 · BLS QCEWTotal Jobs
218k
Median Weekly Pay
$1,429
$74k/yr
Top Sector
Education & Health Services
Household vs Worker Pay
$87k
household median
Employment by Sector — Ann Arbor
% of local workforce · avg weekly wage · 5-year growth trend
~$66k/yr
~$103k/yr
~$63k/yr
~$28k/yr
~$83k/yr
Source: BLS QCEW 2024 Annual · County FIPS 26161
Highest Paying Sector
Professional & Business Services
$1,976/wk · $103k/yr
Most Workers (lowest wage)
Leisure & Hospitality
$534/wk · $28k/yr
Ann Arbor Cost of Living FAQ
Is Ann Arbor, MI expensive to live in?
Ann Arbor has a cost of living index of 108, where 100 is the US average, so it is about 8% more expensive than average. It is the most expensive of the 18 Michigan cities we track.
What is the average rent in Ann Arbor, MI?
Typical rent in Ann Arbor is $1,917 a month for all home types as of September 2026, about the same as the national figure of $1,932. One bedroom units average about $1,572 and two bedrooms about $2,262. Source: Zillow Observed Rent Index for the metro area.
Is rent going up in Ann Arbor?
Rent in Ann Arbor rose 1.8% over the past year, slower than the 2.7% change nationally.
How much is gas in Ann Arbor?
Regular unleaded costs about $4.08 a gallon in Ann Arbor as of November 11, 2026, based on the AAA average for Michigan. That is 2% above the national average of $3.98.
How much is electricity in Ann Arbor?
Homes in Michigan pay an average of 23.0 cents per kWh (EIA), versus 18.4 cents nationally. At 900 kWh a month, a typical bill in Ann Arbor is about $207.
How much is car insurance in Ann Arbor?
Full coverage car insurance averages $2,691 a year in Michigan, or about $224 a month (Bankrate and NAIC state average), compared with $2,150 a year nationally.
How much do you need to live in Ann Arbor?
Median household income in the Ann Arbor area is $87,156 (Census ACS 2023, county level). Rent, gas, groceries, electricity and car insurance add up to about $36,470 a year, or 42% of that income. Groceries are counted at $5,846 a year, the average household spend on food at home in the region (BLS Consumer Expenditure Survey).
How does Ann Arbor compare with the rest of Michigan?
Rent in Ann Arbor is 42% above the $1,346 average across the 18 Michigan cities we track, and its cost of living index of 108 compares with a state average of 92.
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