Cost of Living Detroit

Is Detroit, MI, an expensive place to live? Let's look a little deeper into the costs of living in Detroit, the average household income, typical expenses, and more!

Want to move to the motor city? Well, you are in the right place. Detroit overall is a very unique place and unlike others. This metropolitan area is located below the thumb on the mitt of Michigan and is the largest city in the midwestern state of Michigan. If you are searching for a place in the heart of it all but also affordable, this place is for you. 

Not only is this city known as the automobile capital of the world, but it is also famous for its distinctive Motown music sound from the 1960s. Detroit is home to a various mix of ethnic backgrounds and is known as one of the biggest melting pots. The overall population here is about 639,111, and it is known to be the 27th most populous city in the Unitied States.

The City of Detroit anchors the third-largest regional economy in the Midwest and is the best-known center of the U.S. automobile industry, and the "Big Three" auto manufacturers General Motors, Ford, and Chrysler are all headquartered in the Metro area of the city. So, if you are looking to be in the heart of it all, moving to Detroit may be the perfect place for you. Keep reading to learn about the essential things to know before moving to Detroit, Michigan. 

In this guide, we will be covering the cost of living in Detroit with data that covers data from all the significant areas. These categories will help you have a much better idea of what you'll need to budge in a place that you love.

Keep reading to learn about the cost of living in Detroit.

Cost of Living Detroit

Detroit's cost of living overall is 4 percent higher than the national average. Breaking this number down, housing expenses are 8 percent higher than the national average, utility prices are 2 percent lower, and transportation expenses like bus fares and gas prices are 1 percent higher than the national average. However, even though these numbers are higher than the national average, they are more affordable when comparing it to other metropolitan areas so if you are looking for a big city to live in, Detriot is on the cheaper side of them. 

A family of four estimated monthly cost is $3,847.70 without rent, and a single person estimated monthly costs are about $1,116.50 without rent. Detroit's cost of living is about 30 percent less expensive than other metro cities like New York. However, keep in mind that these numbers are just averages and are not set and stone, but overall, Detroit is an affordable place to live.

Affordability is one of the main factors that attract people to this city. The cost of living is an important concept to know before moving somewhere new because this will help you decide whether you can afford life here or not. However, keep in mind that the cost of living does vary depending on your personal lifestyle and where you choose to live, so make sure you compare it to how your life is.

Sourced from Payscale.

Housing Costs

As of June 2023, Detroit has been known as a neutral housing market which means that prices tend to be reasonable and stay on the market for the typical length of time. The median listing price for homes for sale here is about $132,502 and, on average, stays on the market for about 86 days. 

If you are interested in looking for homes for sale in Detroit, you should check out single-family homes, luxury homes, new-construction homes, and gated community homes.

The housing market, in general, will always vary depending on the time of year, the economy, and many other things. But in Detroit, it offers its residents various options between buying and renting and has affordable living with unique spaces compared to other places. Finding a home here that fits your perfect needs will not be hard! Make sure to check out the best neighborhoods in Detriot and the best neighborhoods in Grand Rapids to help decide what area is for you.

The housing market here is known for its competitiveness and unique dynamics since this city is one of the most populous places in the Midwest. The market is on the rise but keep in mind that housing trends and the economy can impact the prices. Overall, homes here in Detroit and relatively affordable, and there is something for everyone. 

Income

The median income for an individual in Detriot is about $20,961, and the median household income is $32,498, according to the United States Census Bureau. 

White-collar workers make up about 71 percent of the working population, while 29 percent of the population are blue-collar workers. There is also, about 7 percent of the employees in entrepreneurship, 73 percent in private companies, and 10 percent working in governmental institutions. This city is home to many different employees, so if you are looking for a place to move to where you will have many employment options, then this is the place for you. 

The top highest paying jobs in Detriot are Gastroenterologist, Physician Scientist, Non-Invasive Cardiologist, and Dermatologist. However, keep in mind that all of these numbers and statistics do vary, and everything depends on what your occupation is, what education you have, and where you are located. Keep an eye out for new and upcoming employment positions. 

Utilities

In Detriot, households paid an average of 19.2 cents per kilowatt-hour of electricity in May 2023, according to the U.S. Bureau of Labor Statistics. This number is a little bit higher than the national average and has been above the national average for the past couple of years. 

Keep in mind that Detriot experiences very long and cold winters, and with that, you have to remember that essential utility bills like electricity, heating, cooling, and water will be higher than if you were somewhere warmer. On the other hand, if you add Internet to your bill, that does make the price go up. Overall, utilities are hard to put to an exact number because it does vary depending on where you are located, what utilities you use, how big your home is, and many other things. 

Food and Grocery

Detriot has many various dining options. Whether you are looking for an upscale restaurant or a quick bite, they have it all. Eating out, on average, will cost about $15.26 a meal, but that does vary depending on what location you are at. For a single adult living in Detriot, you will pay about $4,010 on food a year, but if you are a family of 4, you will spend about $11,812 a year. 

On the other hand, Detriot's grocery prices are about 1 percent higher than the national average but keep in mind that every store's prices do vary. Depending on how big your family is, how often you eat out, and the diet you are on, everyone will have different food costs. Below are some average food costs at your local grocery stores. 

Healthcare

Healthcare in Detriot is about 1 percent lower than the national average. Having proper medical care is very important for many people. An individual living here will pay about $3,108 a year in care, while a family of 4 will pay about $6,613 a year in care.

On the other hand, getting health insurance here has been. struggle for about 2/3 of the population. Rising healthcare prices have increased and have been an ongoing issue for the residents of Detroit. On average, monthly costs of health insurance will vary from $400 to $700. If you are looking for excellent and affordable health insurance, make sure you research, so you get the best deal. Without good healthcare insurance, costs will be higher. Below are a few common healthcare costs. 

Transportation

The best way to get around Detroit is either the light-rail/streetcar systems, bike share/rentals, bus services, trains, or scooters. The Detroit Department of Transportation is the largest public transit provider in Michigan that serves the city of Detroit, surrounding suburbs, and neighboring cities.

However, owning your own vehicle may be your best bet because Detriot is spread out, and public transportation may be hard to use for an everyday ride. As an individual in Detroit, you will spend about $5,356 on transportation, while a family of 4 will spend about $14,164 a year on transportation. The overall gas prices do vary, but the average gasoline price is around $3.43. 

Keep in mind these costs are not fixed and will vary depending on what form of transportation you choose to use and the maintenance behind it as well. 

Taxes

The City of Detroit's income tax rate for residents is 2.4 percent, and the income tax rate for non-residents is 1.2 percent. Michigan overall has a 6 percent state sales tax rate and does not levy any local sales taxes. On the other hand, the state does have one of the highest property taxes in the country. Since land here has less value, landowners have to pay higher rates to fund the city services. Taxes have hit the highest number here due to inflation.

FAQ

Is Detriot, Michigan, expensive to live in?

Since the cost of living is higher than the state and national average, that does make this city on the more expensive side. 

How much do you need to make to live comfortably in Detroit?

A single person making $58,358 after taxes is the best income to live comfortably since expenses here do cost higher than average.

What is a good salary in Detroit?

The top earners have an annual salary of $97,638, the 75th percentile earns $90,139, the average is $70,031, and the 25th percentile earns $49,924 annually.

What is the average cost of living in Detroit, Michigan?

The overall cost of living is 4 percent higher than the national average. Housing expenses are 8 percent higher than the national average, utility prices are 2 percent lower, and transportation expenses like bus fares and gas prices are 1 percent higher than the national average.

Finding the perfect place to live - Detroit, MI

The cost of living is a critical concept to know before moving somewhere new because this will help you decide whether you can afford life here or not. Affordability is one of the main factors that attract people to this city. However, keep in mind that the cost of living does vary depending on your personal lifestyle where you choose to live, so make sure you compare the average costs to what your life is like.

Not only is the cost of living low, but overall, living here is known to be very affordable and has lots of things to do. The location of its city makes it easily accessible that provides various opportunities for its residents. The unique city and the diverse population make this city different than many others, and if you are looking for a place to live where a unique community will surround you, then this place is for you. 

If you are interested in moving to Detroit, then please get in touch with us here so we can connect you with one of our Realty Specialists to help make your transition for you go smoothly. We are here to help you find the perfect home for you. 

Contact us here today for any questions or help.