Side-by-side cost of living comparison for 2026
12% cheaper
Phoenix is 12% more affordable than Ann Arbor. A $75,000 salary in Ann Arbor is equivalent to $65,789 in Phoenix.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Michigan salaries · Arizona salaries
Housing is typically the biggest factor in any cost-of-living comparison. Ann Arbor has a housing index of 135 while Phoenix sits at 102 (national average = 100). The median home in Ann Arbor costs $400,000 compared to $350,000 in Phoenix, a difference of $50,000. Monthly rent follows a similar pattern: $1,600 in Ann Arbor versus $1,400 in Phoenix.
Groceries and everyday expenses show a narrower gap: Ann Arbor scores 101 while Phoenix scores 99. Both cities are close to the national average for grocery costs.
Healthcare costs in Ann Arbor (101) are higher than Phoenix (95). Both are close to the national average.
Median household income in Ann Arbor is $65,024 compared to $57,459 in Phoenix. When adjusted for cost of living, income goes further in Phoenix.
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