Cost of Living in Detroit, MI

With a cost of living index of 72, Detroit, MI is one of the most affordable cities in the country. Living here is 28% cheaper than the national average and 6% below the Michigan state average of 78. As a major city with a population of 636,644, Detroit offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Detroit's cost of living. The median monthly rent is $1,034 (22% below the US median of $1,319), and the median home value sits at $76,800 (75% below the national median of $304,900). At current prices, the median home costs roughly 1.9x the median household income — well within traditional affordability guidelines.

The median household income in Detroit is $39,575, which is 47% lower than the national median of $75,149. Residents spend roughly 31% of household income on rent. This exceeds the recommended 30% threshold, meaning many renters here are cost-burdened. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Everyday prices in the Detroit-Warren-Dearborn, MI (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 5 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.