Cost of Living in Michigan: What New Homeowners Should Expect
If you’re thinking about buying a home in Michigan — whether you’re a first-time buyer or relocating from out of state — you’re probably asking:
“Is Michigan affordable to live in?”
or
“What’s the cost of living in Michigan compared to where I live now?”
The short answer?
Michigan is one of the most affordable states in the U.S. — but it’s still smart to look closely at what everyday costs actually look like for homeowners.
Let’s break it down:
Housing Costs: The #1 Advantage
Compared to national averages, Michigan’s home prices are well below the norm. As of 2024:
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Median home price in Michigan: ~$235,000
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National median: ~$400,000+
Even in growing areas like Grand Rapids, Lansing, and Kalamazoo, you’ll often find beautiful starter homes in the $200K–$300K range.
That’s a big reason why out-of-state buyers are moving here.
Property Taxes: Varies by County
Michigan has higher-than-average property tax rates, but that’s balanced by lower home prices.
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State average: ~1.5% of assessed value
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️ Local range: Can be as low as 1.2% or as high as 2.5% depending on the city or township
Bonus tip:
If this will be your primary residence, you may qualify for the Principal Residence Exemption, which can reduce your property taxes significantly.
We help our buyers estimate this during the mortgage process so there are no surprises!
Utilities: Right in the Middle
Your monthly utilities will depend on the size and efficiency of your home, but here’s what most Michigan homeowners can expect:
| Utility | Monthly Average |
|---|---|
| Electricity | $110–$150 |
| Gas/Heat | $60–$130 (more in winter) |
| Water/Sewer | $40–$80 |
| Internet | $50–$90 |
Tip: Michigan winters can be cold, but many homes use natural gas, which is more affordable than electric heat in other parts of the country.
Healthcare: Affordable and Accessible
Michigan ranks below the national average for healthcare costs and has solid access to hospitals and primary care, especially in metro areas.
If you’re relocating from a high-cost state like California, Illinois, or New York, you may notice lower insurance premiums and co-pays.
Transportation: Low Gas Prices, But You’ll Likely Need a Car
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Most Michigan homeowners drive — especially outside city centers
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⛽ Gas prices tend to be below national average
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️ No toll roads in most of the state (huge win!)
Public transportation is limited in many areas, so owning a car is usually part of the cost of living here.
Groceries and Everyday Living
Grocery prices are close to the national average, and you’ll find plenty of options from small local markets to national chains like Meijer, Kroger, Aldi, and Costco.
Bonus: Farmers markets are huge in Michigan — fresh, local, and often cheaper!
So… Is Michigan Affordable for Homeowners?
✅ Lower home prices
✅ Reasonable grocery, healthcare, and utility costs
✅ Higher property taxes, but often offset by overall affordability
Overall: Michigan remains one of the most affordable places to buy and own a home — especially compared to major coastal states.
Want to Know What You Can Afford?
We’ll help you calculate your monthly payment, including:
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Mortgage
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Property taxes
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Insurance
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Utilities
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HOA (if any)
So you can see the real cost of living in Michigan based on your budget and lifestyle.
Ready to See What Michigan Living Looks Like for You?
Let’s chat about your goals — whether you’re planning a move or just starting your first home search.
Call or text: (616) 465-5725
Book a free home budget meeting or call
Grab your free home-buying tool kit here!
JPAL Mortgage is proudly based in Michigan, where its two owners were born and raised! We love this state and have traveled it far and wide. It’s a passion of ours to help make a smooth landing here in Michigan!
JPAL Mortgage – Your best friend in home finance.
All loans require complete underwriting approval, including satisfactory appraisal and clear title work. Interest rates and closing costs are subject to change. NMLS ID #2189752 | Equal Housing Opportunity