Is it cheaper to live in Ann Arbor or Las Cruces?

Las Cruces, NM is cheaper. Its monthly baseline of $940 (1BR rent + utilities) runs about 42% below Ann Arbor, MI's $1,630, mainly because of rent.

How much more do you need to earn to live in Ann Arbor than in Las Cruces?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $32,000 in Las Cruces.

Which has lower taxes, Ann Arbor or Las Cruces?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Las Cruces under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Ann Arbor vs Las Cruces Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Las Cruces

New Mexico

$940/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,630 in Ann Arbor, MI versus $940 in Las Cruces, NM. Overall, Las Cruces, NM is roughly 42% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $55,176 in Las Cruces, NM — about 32% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.

Ann Arbor, MI

Las Cruces, NM

Rent

Studio

$1,274

$597

+53% in Ann Arbor, MI

1 Bedroom

$1,389

$793

+43% in Ann Arbor, MI

2 Bedroom

$1,692

$888

+48% in Ann Arbor, MI

3 Bedroom

$1,812

$1,177

+35% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$217,400

+50% in Ann Arbor, MI

Income

Median Household Income

$81,089

$55,176

+32% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$42,070

+24% in Ann Arbor, MI

People & Lifestyle

Median Age

27.7 yr

32.7 yr

+5.0 yr in Las Cruces, NM

Homeownership

45.6%

55.6%

+10.0 pp in Las Cruces, NM

Bachelor's+ (25+)

77.7%

37.3%

+40.4 pp in Ann Arbor, MI

Avg Commute

19.9 min

18.7 min

+1.2 min in Ann Arbor, MI

Crime (per 100k/yr)

Violent Crime

311

726

+133% in Las Cruces, NM

Property Crime

1,744.5

4,899.2

+181% in Las Cruces, NM

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

47.7°F

58.8°F

+11.1°F in Las Cruces, NM

Annual Precipitation

32.8 in

—

Gas

Regular Gasoline

$3.85/gal

$3.62/gal

+6% in Ann Arbor, MI

Area: Midwest (PADD 2) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

23.0

15.1

+34% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$9.31

+53% in Ann Arbor, MI

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.82

+12% in Las Cruces, NM

Bread (lb)

$1.66

$2.04

+23% in Las Cruces, NM

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$7.36

+9% in Las Cruces, NM

Chicken (lb)

$2.10

$2.01

+4% in Ann Arbor, MI

Bananas (lb)

$0.62

$0.70

+14% in Las Cruces, NM

Average prices — Midwest vs West (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MI / NM)

4.875%

+1.1 pp in MI

Income Tax (top rate)

4.25%

5.90%

+1.7 pp in NM

Ann Arbor vs Las Cruces — FAQ

Is it cheaper to live in Ann Arbor or Las Cruces?: Las Cruces, NM is cheaper. Its monthly baseline of $940 (1BR rent + utilities) runs about 42% below Ann Arbor, MI's $1,630, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Las Cruces?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $32,000 in Las Cruces.
Which has lower taxes, Ann Arbor or Las Cruces?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Las Cruces under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).