Detroit, Michigan is known for its delicious food and music scene, but the city has an extremely interesting recent history that has greatly affected the cost of living. So let’s find out: Is Detroit a cheap place to live, and maybe more importantly, why?
Detroit is considered to be a cheap place to live as the city provides affordable housing and an overall low cost of living. Compared to the rest of the country, Detroit is significantly less expensive than the national average and most other metropolitan cities.
In this article, we are going to dive deep into the cost of living in Detroit, as well as how the city compares to the rest of the country, and even why Detroit is so cheap! So keep reading; you are going to be an expert in no time at all!
Cost of Living in Detroit
Understanding the cost of living throughout the United States can be a little complicated, so experts have created the cost of living index to organize the data.
Here’s how it works: the average cost of living is set at 100; states that score below 100 are considered more affordable, whereas those that have a score over more than 100 are considered expensive.
Detroit has a general cost of living index of 87.6. Just for comparison, New York City has a score of 168.6 and Dallas, Texas’ is 101.6.
So it should be quite clear that Detroit is considered a cheap place to live, especially compared to other US cities.
Now, when it comes to cost of living, there are several factors to consider such as the price of a home, the average income, the cost of utilities, groceries, and general necessities within the city.
Breaking it Down
In Detroit, the median home value is $69,857, which is far less than the national median home value of $428,700.
In regards to utilities and groceries, Detroit comes in under the national average again. A family home can expect to spend $140 on utilities and $300 on groceries every month.
One important thing to note is that the average household income in the city is $32,498, whereas $67,521 is the national average.
So although Detroit is considered an extremely affordable place to live for the middle and upper class, there is still immense poverty throughout the city.
The bottom line is that if you have a good job with a steady income, you will be able to live extremely comfortably in Detroit and you will be considered quite affluent compared to the majority of the population within the city.
How Does Detroit Compare to the USA?
The total cost of housing, food, child care, transportation, health care, taxes, and other necessities for a single adult in Detroit is $30,649 a year, which is about $8,000 less than the national average.
Many studies have been done to try to organize the big cities of America from least to most expensive, and although they all have varying results, the general consensus is the same: Detroit is one of the cheapest big cities in the country.
If you’re looking for an affordable place to live with all the benefits of a large metropolitan city, Detroit, Michigan should certainly be at the top of your list.
Why Is Detroit So Cheap?
Now that you understand that Detroit is absolutely cheap, especially compared to the rest of the country, you may be wondering why!
Detroit has had a fairly rough history throughout the 20th and 21st centuries. Because of race riots, a housing crisis, and the mass exodus of the automobile industry, many people fled from Detroit over the past 50 years.
However, Detroit is bouncing back. With new businesses moving in, there are far more job opportunities for young professionals, and plenty of cheap houses for them to buy!
Although Detroit still struggles with a high poverty rate, the local government is doing its best to help the city get back on its feet and return to its former glory.
Studies have shown that while Detroit is cheap now, the cost of living may start rising again as the city’s economy gets back on its feet.
The Bottom Line
So, is Detroit a cheap place to live? Absolutely! In fact, Detroit is one of the country’s cheapest metropolitan cities in regards to the cost of living.
With affordable housing, groceries, utilities, and even rental options, Detroit is considered a very cheap city to live in.
If you are considering moving to Detroit, now is the time! There are plenty of houses for sale with a great price tag and job opportunities at companies who moved to the city, and experts believe that the cost of living in the Motor City is going to start rising again in the near future.