If you’re moving to Detroit, you may be trying to decide between embracing the Motor City lifestyle or settling down in the suburbs of Ann Arbor. Ann Arbor and Detroit share many similarities, such as a range of major employers, housing, and recreational activities, but there are some significant differences, too. 

This guide can help you determine which lifestyle best aligns with you and your needs, and you’ll love learning more about what makes each city unique. Plus, given the convenient driving distance from Ann Arbor to Detroit, you can enjoy the perks of both, regardless of which city you choose. Now, let’s dive in! 

Summary:

• Detroit Cost of Living Comparison

  • Cost of Living in Detroit, MI

  • Cost of Living in Ann Arbor, MI

  • Other Living Expenses in Detroit vs. Ann Arbor

  • Average Salary in Detroit vs. Ann Arbor

• Living in Detroit vs. Ann Arbor

• Home Prices and Housing Costs in Detroit vs. Ann Arbor

  • Cost of New Construction in Detroit and Ann Arbor by Neighborhood

Detroit Cost of Living Comparison

One of the more cost-efficient cities in Michigan, you can expect to find a wide range of housing options in Detroit, whether in the suburbs or downtown, for a reasonable price. From historic homes to modern high-rise buildings, there’s no doubt you can find the right fit for your lifestyle. The city also has an abundance of low-cost transportation, so you can get around easily without breaking the bank. Overall, moving to Detroit is less expensive than moving to Ann Arbor. 

Cost of Living in Detroit, MI

Compared to the national average, Detroit's cost of living runs about 3% higher, and it’s 8% higher than the state average, according to RentCafe® as of September 2024. Contributing factors to these living expenses in Detroit, MI, are the cost of housing, utilities, and goods and services. 

Cost of Living in Ann Arbor, MI

With only a slight difference from Detroit, the typical cost of living in Ann Arbor, Michigan, is 4% higher than the national average and 9% higher than the state average, according to RentCafe in September 2024. With housing, food, and health care contributing to this higher cost of living index, Ann Arbor can be generally more expensive.

Other Living Expenses in Detroit vs. Ann Arbor

Grocery Shopping and Dining Out

For dining out, Detroit and Ann Arbor are overflowing with restaurant options. Whether you’re looking for a budget-friendly spot or want to celebrate a special occasion, new restaurants are regularly popping up. You can satisfy all your culinary cravings in these two bustling cities with such a wide range of cuisines available. 

However, grocery shopping and food costs vary greatly when comparing Ann Arbor vs. Detroit. In Detroit, even having access to a grocery store nearby has become an issue for many residents. 

ABC 7 news reported in 2022 that there are only 62 full-service grocery stores in Detroit, which had dropped by 12 since 2017. Additionally, 30% of Detroit residents don’t have a personal vehicle, so finding ways to access the few grocery stores available has become a real challenge. Because of the reduction in grocery stores, prices have inflated significantly at the ones remaining, causing 39% of Detroiters to become food insecure. 

According to 24/7 Wall St., in 2020, the average annual living expenses in Detroit,  MI, for food were $3,027 for a single adult and $8,743 for a household of four. Per Payscale® as of 2024, that puts Detroit's grocery costs 1% higher than the national average, with median prices for basic food items as follows: 

• Loaf of bread: $3.92

• Gallon of milk: $2.46

• Carton of eggs: $2.27

• Batch of bananas: $3.40

• Hamburger:  $5.19

On the other hand, living in Ann Arbor, Michigan, offers residents a wide range of grocery options, including Meijer®, Kroger®, Whole Foods®, Plum Market®, Trader Joe's®, and many small local shops scattered across the city, and all are within a convenient drive. 

Payscale’s January 2024 data finds that Ann Arbor grocery prices are 9% higher than the national average. Here’s the median cost of some common grocery items in Ann Arbor per Payscale:

• Loaf of bread: $4.23

• Gallon of milk: $2.65

• Carton of eggs: $2.45

• Batch of bananas: $3.67

• Hamburger:  $5.60 

Transportation Options and Fuel Costs

In the transportation department, Ann Arbor and Detroit offer similar options. With many unique public transportation alternatives, you don’t necessarily need a car to be able to get around either city. 

In Detroit, modes of public transportation include the following:

• Detroit Department of Transportation (DDOT): This local bus service shuttles an average of 85,000 riders around downtown Detroit and to a handful of neighboring cities daily. 

• SMART: Whether you’re traveling locally or across the county, SMART buses service Macomb, Oakland, and Wayne counties with over 30,000 daily rides. 

• QLINE streetcar: The QLINE is a modern streetcar that runs along Woodward Avenue and services 3.3 miles of downtown and midtown Detroit. 

• Detroit People Mover: Primarily used by tourists or sports fans, the Detroit People Mover is an automated, elevated rail service that runs a 2.9-mile loop around downtown Detroit. 

The average cost of living in Detroit for transportation is $5,356 annually for a single person and roughly $14,164 for a household of four, according to Apartment List® in 2023. For gasoline, a gallon of regular unleaded runs $3.08 per AAA® as of February 2024. 

In Ann Arbor, most residents use their own cars or rideshare programs like Uber® or Lyft®. However, it’s important to note that parking in downtown Ann Arbor can be less than ideal. To combat this, students and young professionals often use the ride services offered by the city: 

• TheRide: This not-for-profit bus service offers transportation within the greater Ann Arbor and Ypsilanti area and is easily accessible at the Blake Transit Center in downtown Ann Arbor. 

• Magic Bus: This bus, run by the University of Michigan, is available for students, employees, and visitors to get across campus. 

• Michigan Flyer: Offering 12 round-trip bus services daily, the Michigan Flyer takes you to and from the Detroit Metro Airport for as little as $25. 

The average cost of living in Ann Arbor, Michigan, for transportation is $5,149 annually for a single adult and $13,993 annually for a family of four, according to Apartment List in 2022. The average cost of unleaded gasoline in Ann Arbor is around $3.12 per gallon per AAA as of February 2024. 

Healthcare and Insurance Costs

Comparing Detroit to Ann Arbor, healthcare offerings and insurance costs vary slightly. With Ann Arbor being home to one of the best medical facilities in the state, the cost of doctor visits and prescriptions tends to be higher, while Detroit may offer more affordable options. 

Detroit, MI, Cost of Living: Medical Expenses

According to Payscale’s February 2024 data, here’s a sample of medical-related expenses in Detroit: 

• Doctor appointment: $123.66

• Dental visit: $106.69 

• Optometrist appointment: $116.48 

• Prescriptions: $455.63

• Vet visit: $63.39 

Ann Arbor, MI, Cost of Living: Medical Expenses

For Ann Arbor, Payscale provides the following breakdown of average medical-related expenses as of February 2024: 

• Doctor appointment: $158.51

• Dental visit: $136.76

• Optometrist appointment: $149.31

• Prescriptions: $584.03

• Vet visit: $56.51

For health insurance, costs can vary depending on specific plans and carriers. Generally, Michigan residents pay an average of $406 per person for individual health plans, according to eHealth® in January 2024. 

Utilities, Internet, and Phone Expenses

Aside from bigger expenses like housing, transportation, or food, you want to factor in several other essential expenses to maintain your home. Utilities, internet, and phone costs can vary depending on how many people you live with and where you live in the city. 

According to Numbeo® in February 2024, here’s a breakdown of the average utility and internet-related costs in Ann Arbor compared to Detroit.

Detroit Cost of Living

• Utilities (electric, heating, cooling, water, garbage): $261.35 (for an apartment less than 1,000 square feet)

• Monthly phone plan (including 10GB of data): $52.33

• Internet (unlimited data, cable/DSL, or 60+ Mbps): $68.83

Ann Arbor Cost of Living 

• Utilities (electric, heating, cooling, water, garbage): $135.18 for an apartment less than 1,000 sq ft

• Monthly phone plan (including 10GB of data): $42.50

• Internet (unlimited data, cable/DSL, or 60+ Mbps): $61.88

Across the board, the Ann Arbor, Michigan, cost of living may be more affordable for utilities, phone, and internet costs than Detroit. 

Tax Rates

Sales, property, and state income taxes are other expenses to consider when moving to a new city and finding your new home. To shed some light on these costs, here are the average tax rates for each category. 

Property Tax

According to SmartAsset®, as of February 2024, the current property tax rate for Ann Arbor is 1.630%. Detroit's current property tax rate is 1.900%. 

Sales Tax

According to the state’s government website, the set rate for sales tax in Michigan is 6%. This is a required rate for all individuals or businesses that sell tangible personal property. 

Income Tax

As of 2023, the Tax Foundation reports Michigan has a flat rate of 4.25% for individual income taxes and 6% for corporate income taxes. 

Recreation Costs

For outdoor enthusiasts, Ann Arbor and Detroit each offer ample options for spending time in nature and being active. Whether you’re looking to keep your kids busy or you enjoy hiking or biking on your own, there’s likely a place nearby with lots of space to explore. 

One popular way residents in both cities keep active is by purchasing a membership at the local recreation center. Perfect for everyone, these recreation centers are a great way to meet new people in the community and get involved. 

Here are the annual membership prices in Ann Arbor and Detroit as of January 2024. 

Detroit: Northwest Activities Center (as of January 2024)

Ann Arbor: Parks & Recreation Washtenaw County (as of January 2024) 

Average Salary in Detroit vs. Ann Arbor

Ann Arbor and Detroit both offer proximity to major employers. As a result, the salaries in each city are comparable. In 2023, Payscale reported the average annual salary as $77K in Detroit and $76K in Ann Arbor.

Living in Detroit vs. Ann Arbor

The distance from Detroit to Ann Arbor is 43 miles, and each city has distinct aesthetics, opportunities, and energy.

Detroit offers a more industrial atmosphere with entrepreneurial vibes. While there are plenty of quaint neighborhoods within the suburbs, the downtown area of Detroit is similar to cities like Chicago or New York, with a mix of skyscrapers, corporate buildings, and shop-lined streets. Offering more cityscape than green space, Detroit gives you that big city feel, bustling with people and life.

On the other hand, Ann Arbor has plenty of parks and outdoor spaces hidden between its many historic buildings. Although it’s one of the bigger cities in Michigan, Ann Arbor still has more of a small-town feel with a plethora of community events and a more compact downtown area. The city’s free-spirited atmosphere and rustic homes and buildings make it ideal for everyone. 

Living in Detroit, Michigan

The Motor City, as many Michiganders call it, is a hub for creativity, innovation, and diversity. Rich in history and charming neighborhoods, Detroit has a little something for everyone. From the iconic Detroit Metropolitan Museum of Art to the jam-packed Eastern Market, there’s something new opportunity to explore around every corner. 

Plus, Detroit has a seemingly never-ending list of community events throughout the year, so there’s usually something fun to do around town. 

Living in Ann Arbor, Michigan

When moving to Ann Arbor, you’ll find the city overflowing with arts, culture, opportunity, and year-round events. The overall Ann Arbor vibe is laid-back and eclectic, with a diverse mix of students, corporate professionals, and households of all sizes. This city never sleeps and is known for its close-knit community feel. 

With proximity to outdoor recreation venues and home to hundreds of incredible restaurants, cafes, and shops, there’s so much to discover. Whether enjoying summer concerts in the park or exploring the Kerrytown Farmers Market, you’ll always have something to do and someone new to meet. 

How Far Is Ann Arbor From Detroit?

Driving from Ann Arbor, MI to Detroit, MI, is 43 miles and a fairly convenient commute, depending on traffic. While the quickest way to cover the Ann Arbor-Detroit distance is via car, several bus routes travel in either direction, too.

Is Ann Arbor a Big City?

As of April 2022, the U.S. Census Bureau estimated the total population of Ann Arbor was 123,872 people, making it the fifth-largest city in Michigan. With a melting pot of individuals strolling the streets and the never-ending stream of events taking place downtown, Ann Arbor packs tons of life and adventure into its 29 square miles. 

What Is Ann Arbor Known For?

Ann Arbor is known for being home to the University of Michigan, founded over 200 years ago.  And the college has had its share of celebrity students, including Madonna, Iggy Pop, and Tom Brady. The campus and city attract thousands of visitors annually for football games, concerts, and events like the popular Ann Arbor Art Fair. 

Why Is Ann Arbor So Expensive?

Many factors contribute to the Ann Arbor living cost. While some gentrification downtown has replaced affordable spots with more trendy, expensive alternatives, the city’s high demand for housing and limited supply has also steadily increased prices over the last few years for individuals looking to buy or rent. 

Home Prices and Housing Costs in Detroit vs. Ann Arbor

While Detroit and Ann Arbor feature an array of housing options, the pricing between these two cities varies quite a bit. Detroit tends to be more budget-friendly, with lower rents and affordable home prices, while Ann Arbor offers a higher cost of living and limited availability. Let’s explore the difference in median home prices between these cities. 

Detroit Median Home Price

Detroit offers access to a wide range of quality and affordable housing. From historic apartment buildings downtown to the many charming single-family homes scattered around the suburbs, housing in Detroit can be much more accessible than in Ann Arbor. 

In December 2023, Redfin® found the median sale price of Detroit homes to be $81K, an increase of 14.1% from 2022, with an average of 44 days on the market. 

Ann Arbor Median Home Price

For housing, the Ann Arbor, Michigan, cost of living is significantly higher than in Detroit, primarily due to the high housing demand, which limits availability. 

Redfin reported the Ann Arbor median home price to be $405K in December 2023, only a 0.2% increase from 2022. Given the competitive market, Redfin found homes selling within 33 days. 

Cost of New Construction in Detroit and Ann Arbor by Neighborhood

With a diverse range of home designs and prices, Ann Arbor and Detroit offer plenty of wonderful new construction options to suit your preferences. With most homes starting in the low to mid $200Ks, let’s explore the average cost of new construction in Detroit and Ann Arbor neighborhoods.  

Saline 

Situated roughly 10 miles outside Ann Arbor, Saline is a quaint town known for its natural salt springs. You’ll find several opportunities to explore the many parks and attractions nearby or wander through the many boutique shops downtown. With an incredible art scene and numerous year-round community events, this small city will expand your view of suburban towns. 

The typical cost of a new construction home in Saline ranges from the low $300Ks to the mid $600Ks, according to NewHomeSource® in February 2024. Explore Pulte® new construction homes in Saline, MI, with several design options starting in the upper $400Ks. 

South Lyon

South Lyon is known for its quality schools, popular annual festivals, and beautiful historic buildings and homes. With over 100 stores and dining venues across its 3.5 square miles, this enchanting town is jam-packed with adventure and fun. Its proximity to major highways offers a convenient commute to work, neighboring cities, or the airport. 

As of February 2024, NewHomeSource finds the average price for new construction homes in South Lyon ranges from the high $400Ks to the high $500Ks. Our new construction homes in South Lyon start at $578K. 

Canton

Canton sits between Detroit and Ann Arbor in the heart of southeast Michigan. Once known as the sweet corn capital of Michigan, the city has a fascinating farming history. Home to a world-class library, fantastic shopping options, and plenty of acres of green space, this serene spot has something for everyone to enjoy. 

According to NewHomeSource, the average cost for a new construction home in Canton in February 2024 runs from the low $400Ks to the low $600Ks. Explore our new construction homes in Canton, MI, beginning in the low $400Ks. 

Shelby Township

A nature lover's dream, Shelby Township is home to more than 100 species of native birds and animals and over 80 species of trees, wildflowers, and shrubs. With countless parks, sports fields, and play areas for children, it’s the perfect place to indulge in an active lifestyle. Bordering the beautiful Lake St. Clair, Shelby Township offers an oasis away from city life with its picturesque landscapes and peaceful atmosphere. 

The average cost of a new construction home in Shelby Township ranges from the mid $400Ks to the mid $800Ks, according to NewHomeSource in February 2024. Check out our new construction homes in Shelby Township in appealing communities like The Village at Beacon Pointe, starting in the mid $400Ks. 

Clarkston

Clarkston is a northern suburb of Detroit with plenty of community-oriented activities and abundant housing options. Named a National Historic Site, downtown Clarkston is lined with boutiques and eateries brimming with life. Locals enjoy plenty of concerts, parades, and festivals. You can visit the iconic Pine Knob Music Theatre or soak up the sun, hike, and bike at Depot Park. 

NewHomeSource, in February 2024, finds the average new construction home price in Clarkston ranged from the low $300Ks to the low $600Ks. Our new construction homes in Clarkston, MI, start at $374K for townhomes and $594K for single-family homes. 

Conclusion

From the dynamic downtown streets of Detroit to the free-spirited atmosphere of Ann Arbor, both these major Michigan cities have something special to offer. Though the Ann Arbor cost of living index may be higher, if you’re seeking a small-town feel with lots of space to explore the outdoors, this college town may suit you best. Alternatively, with its rich history and more affordable cost of living, Detroit, MI, may be calling your name. 

Luckily, either city is a winner for homeowners. With both offering a range of year-round events and plenty of options for incredible shopping, dining, and entertainment, you’ll always have something new to explore nearby.  

Explore new construction homes in Detroit, MI, and Ann Arbor today, or browse more Pulte blogs.

Written By: Bella Biafore, Michigan Resident & Marketing Coordinator of Pulte Homes Michigan Division

Last Updated: November 19, 2024