Cost of Living in Detroit: What to Expect When Renting in the Motor City

Starting fresh in a new city is thrilling, but it also comes with its challenges — especially when searching for the perfect rental apartment. Before packing up and setting off, it’s essential to have a clear understanding of what to expect in terms of cost of living. From housing to utilities, and even groceries, these costs can vary significantly from one city to another, impacting your overall budget and lifestyle.

Take Detroit, for instance: Known as the Motor City due to its automotive legacy, Detroit has become an increasingly popular choice among renters. In fact, Detroit ranks high among the most sought-after cities for apartment hunters in the U.S. With its rich history, cultural scene, and ongoing urban revitalization, it’s easy to see why more people are choosing Detroit as their new home.

But before you make the move, let’s explore the cost of living in Detroit and how it compares to the state of Michigan and the U.S. averages.

What is the average cost of living in Detroit?

Renting in Detroit offers a unique experience, blending the city’s industrial past with its urban revival efforts. However, like for any major city, it’s important to consider the cost of living here before making a move. According to recent data, the average monthly rent in Detroit stands at $1,256, while home prices hover around $535,159. The median household income in Detroit is $37,761, which plays a significant role in how far your dollar can stretch in the city.

When comparing the cost of living in Detroit to broader averages, the city stands out in a few key areas. Overall, the cost of living in Detroit is 8% higher than the Michigan state average and 3% higher than the national average. This slight uptick is mainly attributed to housing costs, which are 8% more expensive than the U.S. average. However, not all costs in Detroit are higher — utilities, for example, are about 5% less expensive compared to the national average.

When it comes to basic necessities like food and clothing, the city presents a mixed picture. For instance, groceries are approximately 2% more expensive than in other parts of the country. Similarly, clothing costs in Detroit are about 2% higher than the U.S. average. These small percentages may not seem significant, but they can add up over time, especially for renters on a tight budget.

Healthcare is another area where Detroit renters might feel a slight pinch. Services such as doctor check-ups and dental care cost around 4% more in Detroit compared to the national average. Additionally, non-necessary expenses, like entertainment and grooming services, are also 2% pricier in this city. These costs are important to consider as they contribute to the overall cost of living in Detroit.

Is Detroit right for you (and your wallet)?

Having a clear understanding of the cost of living in Detroit is a vital step for any renter considering a move to this Midwestern gem. With costs slightly higher than the state and national averages, especially in housing and healthcare, it’s important to weigh these factors against your budget and lifestyle.

However, the city’s unique vibe and promising opportunities make it an attractive option for many — that’s why being informed about the average cost of living will help you better prepare for what to expect.

Ready to make the Motor City your new home? Start your journey today by exploring apartments for rent in Detroit that fit your needs and budget in this incredible city.