Cost of Living in Detroit, MI 2023

March 23, 2023
Are you interested in moving to Motor City? Find out more about the cost of living in Detroit, from housing, food, transportation, and more!

Are you considering moving to Detroit? Before taking on a new city, it's important to take the time and research whether it's the best fit for your budget. You'll have to consider things like housing prices and taxes, entertainment costs, transportation expenses, healthcare fees - all of these come together to make up just one piece of the larger cost of living puzzle.

Here, we'll explore the cost of living in Detroit. From average utility costs and shopping options right through lifestyle activities and dining – everything will be put under the microscope here so that you can get a clear idea of how much life would actually cost if you were renting an apartment!

Detroit Cost of Living

Whether you’re looking to move to Detroit to take advantage of the low cost of living, the community initiative, or a combination of both, you’ll want to get a good idea of what your costs will look like. Let’s look at the cost of living in Detroit to understand better how much you need to live there.

Detroit Housing Costs

Following the rent drops during the pandemic, many cities began seeing increases once again over the past year, with Detroit following suit. However, with winter past us, rents have started to drop once again. According to our latest Rent Report on Detroit, the median rent index is $674 for a one-bedroom apartment and $913 for a two-bedroom.

In September, rent prices jumped throughout Detroit. Since then, the city has seen consistent decreases in median rent prices. While the city's year-over-year rent growth remains below the state average, Detroit falls well below the national average.

Detroit is comparable to other major cities, including Las Vegas, Minneapolis, and Charlotte. The median rent index for a one-bedroom apartment in these cities is $1,067, $976, and $1,314, respectively. Known for its low cost of living, Detroit falls well below all major U.S. cities in terms of median rent prices.

The Detroit housing market has seen steady, significant growth, with median home prices currently at $60,030. These prices are remarkable compared to competing areas like Las Vegas, with a median price index of $382,000, Minneapolis at $305,528, and Charlotte at $375,000.

Detroit’s QLine, shown here, runs along Woodward Avenue in downtown Detroit.

Detroit Transportation Costs

Detroit’s official public transportation operator is the Detroit Department of Transportation (DDOT), serving the city, surrounding suburbs, and neighboring towns. There are 68 bus routes to choose from, with access readily available through the online bus schedules.

Public transportation can sometimes be unreliable depending on a number of factors, so you will most likely need to consider having a vehicle of your own.

If you're a single adult with no children, you'll spend about $5,356 for transportation in Detroit annually. A family of four, including two working adults and two children, will pay $14,164 for transportation annually. Gasoline prices are around $3.51 per gallon, a bit lower than the national average of $3.78.

Detroit Food Costs

Detroit offers countless dining options, with a handful of authentic foods from the city you have to add to your must-eat list, including double-baked rye bread, zip sauce, Boston coolers, Detroit-style pizza, and Coney dogs.

Eating out in Detroit costs an average of $15.26 for a meal at an inexpensive restaurant. A three-course dinner for two people at a mid-range restaurant will run $60 without alcohol or dessert.

If you're a single adult without children, you can expect to pay at least $4,010 on food per year. However, if you're a family of four with two working adults and two children, you can expect to pay $11,812 per year for food.

You can anticipate paying below the national average for food items from local grocery stores like Whole Foods Market, Greenfield Market, or Prince Valley Market. For example, one gallon of regular milk will run you $3.36 in the grocery store, with the national average being $3.87.

Henry Ford Hospital at the Western Edge of the New Center Area in Detroit, Michigan, USA.

Detroit Healthcare Costs

When planning your budget in Detroit, you will also want to account for proper medical care. A single adult without children will pay around $3,108 for medical care over the year. Two working adults with two children will pay $6,613.

Detroit Utility Costs

Winters in Detroit are windy, snowy, and freezing. The coldest days of the year fall in January with an average overnight temperature of 21°. Summers are known for warmth. July is the hottest month with an average daytime high of 83°.

To combat more than three months of freezing winter, you'll need to account for higher utilities in the winter to keep warm. Detroit’s basic utilities include electricity, heating, cooling, water, and garbage, running $262.92 for a 915-sq. ft. apartment.

Adding on the Internet with 60 Mbps or more with unlimited data, cable/ADSL will cost you an extra $78.49 for a total of $341.41 each month.

Before you move, find out how much utilities will cost in an apartment so you can get a better idea of what to expect.

Exterior of Comerica Park home to the Detroit Tigers. The ballpark has a capacity of over 41,000 and replaced Tiger Stadium in the year 2000.

Detroit Fitness and Entertainment

Knowing how brutal winters are in Detroit, you’ll want to consider fitness club membership costs to keep fit throughout the year. The monthly fee for a fitness club membership for one adult is $45.95.

Otherwise, when weather permits, you can enjoy the beautiful landscape of Detroit outdoors. Enjoy hiking trails across the city like the Dequindre Cut Greenway or the Detroit Riverfront, both located downtown. Otherwise, take to other walking and hiking paths with a more scenic view like Lake St. Clair Metropark Loop, the Belle Isle Lighthouse Trail, or the Macomb Orchard Trail.

There is plenty of entertainment throughout the city, though if you enjoy the local cinema, it will cost you $12 without snacks or drinks. You can also save a few bucks by checking out some of Detroit’s best parks and nature attractions, including Belle Isle Park, Anna Scripps Whitcomb Conservatory, or William G. Milliken State Park and Harbor.

Other Expenses to Consider in Detroit

Michigan has a flat income tax rate, though some cities charge an additional rate. In Detroit, the income tax rate is 2.45%, and the sales tax rate is 6.00%. Unfortunately for homebuyers, the state has some of the highest property taxes in the country.

Aside from taxes, anyone moving out of state to Detroit will need to consider costs associated with cross-country movers, storage, hotels, and transportation. These moves also often require additional apartment application fees, security deposits, pet deposits, and other add-ons.

Another considerable expense that can add up quickly is furnishing your new home. Check out some tips and tricks on decorating your apartment on a budget to help you save a few bucks during your big move.

Downtown Detroit

What Salary Do You Need to Live in Detroit?

Your recommended salary in Detroit depends entirely on the type of lifestyle you plan to lead. The living wage in Detroit is $16.43 per hour, which is the basic wage needed to pay for essentials such as housing, food, and necessities. Extra costs like dining and entertainment are not a part of the living wage, so be sure to keep that in mind when calculating your budget.

The average salary index in Detroit is $74,000 per year, roughly $19.87 per hour. However, according to the U.S. Census Bureau, the median household income in Detroit is $34,762 pe ryear.

You can follow the 30% rule for rent to determine what salary you should be searching for in Detroit. According to this rule, you should not be spending more than one-third, or 30%, of your gross income on rent.

For example, if your rent is close to the median for a one-bedroom apartment in Detroit at $674, according to the 30% rule, your monthly wages should be at least $2,224.16 a month, or an annual salary of $26,690. This recommended salary is for a fundamental lifestyle while in Detroit.

Keep in mind that the living wage, average salary, and recommended salary for any city, including Detroit, are three very different things. Don’t forget that if you know you will have a lot of additional living costs, including dining, entertainment, etc.; you’ll need to anticipate these needs and search for a higher salary, a less expensive apartment, or in a perfect world, both.

Thankfully, the typical annual salaries for common professions in Detroit are highly competitive. The three highest typical annual salaries belong to Management, Architecture, and Engineering, and Computer and Mathematical positions, respectively.

Job Market in Detroit

Although the cost of living is relatively low in Detroit, the job market can make it competitive for anyone looking to move here. The unemployment rate in Detroit is higher than the national average of 3.6%, currently at 11%.

Detroit has been nicknamed Motor City to reference the automotive hub it became in the early 1950s. Today, General Motors and Fiat Chrysler are significant employers in the city. Ford Motor Company also plays a pivotal role in Detroit, having recently purchased the historic Michigan Central Station for renovation.

Although the automotive industry remains strong in Detroit and manufacturing remains the most prominent employment sector jobs in business and professional segments are rising. Other emerging industries include health services, construction, and education.

Final Thoughts

If you are interested in moving to Detroit, a city full of sports, music, and arts, then you’ll need to find which Detroit neighborhood is best for you and learn how to apartment hunt. Then, register with Apartment List today and start checking out the hundreds of available apartments to rent in Detroit!

FAQs: Cost of Living in Detroit

How Expensive Is an Apartment in Detroit?

Rents in Detroit are increasing. A one-bedroom apartment in New Detroit costs $674. A two-bedroom apartment in Detroit cost $913 a month.

What Is the Cheapest Rent in Detroit?

The cheapest rent in Detroit is for a one-bedroom apartment. You can expect to pay an average of $674 a month in rent. A two-bedroom apartment in Detroit costs $913 per month.

How Expensive Is It to Live in Detroit?

A one-bedroom apartment in Detroit will cost an average of $674 per month. Transportation costs $5,356 for a single adult or $14,164 for two adults and a child annually. You’ll spend about $15.26 for a meal at an inexpensive restaurant in Detroit. For two people eating a three-course dinner, you’ll spend about $60. Overall, if you're a single adult, you’ll spend $4,010 on food per year or $11,812 for two adults and a child.

How Far Is Detroit from Chicago?

Detroit to Chicago is 281.4 miles via I-94 E. It takes about four hours and eleven minutes to drive from Detroit to Chicago. It takes five hours and forty two minutes to take Amtrak from Detroit to Chicago.

What Is the Population of Detroit?

According to the U.S. Census Bureau, the population of Detroit was 632,464 in 2022. The entire population of the state of Michigan is 10,034,113.

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Tristian Brown
SENIOR CONTENT ASSOCIATE
Tristian Brown is a Senior Content Marketing Associate at Apartment List, where he manages high-quality content that helps modern renters find the perfect home. He brings an immense wealth of knowledge to the team, having earned a Bachelor of Arts in Marketing and European Management from the University of San Diego and EM Strasbourg Business School. Read More
Emily Kho
EMILY KHO
Emily is a professionally trained writer who covers a wide range of topics associated with the rental market and real estate industry. With over a decade of professional writing experience, Emily comes from a strong background in the field backed with a Bachelor of Science from the world-renowned William F. Read More

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