Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
New Orleans

Louisiana

$1,170/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 $1,170 in New Orleans, LA. Overall, New Orleans, LA is roughly 28% 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 $55,339 in New Orleans, LA — about 32% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Louisiana has a top state income tax rate of 3.00% and a 5% state sales tax.

Ann Arbor, MI
New Orleans, LA

Rent

Studio
$1,274
$953
+25% in Ann Arbor, MI
1 Bedroom
$1,389
$1,019
+27% in Ann Arbor, MI
2 Bedroom
$1,692
$1,287
+24% in Ann Arbor, MI
3 Bedroom
$1,812
$1,392
+23% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$296,400
+32% in Ann Arbor, MI

Income

Median Household Income
$81,089
$55,339
+32% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$47,290
+15% in Ann Arbor, MI

People & Lifestyle

Median Age
27.7 yr
38.4 yr
+10.7 yr in New Orleans, LA
Homeownership
45.6%
50.5%
+4.9 pp in New Orleans, LA
Bachelor's+ (25+)
77.7%
42.0%
+35.7 pp in Ann Arbor, MI
Avg Commute
19.9 min
22.7 min
+2.8 min in New Orleans, LA

Crime (per 100k/yr)

Violent Crime
311
1,361.1
+338% in New Orleans, LA
Property Crime
1,744.5
5,089.6
+192% in New Orleans, LA

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
70.6°F
+22.9°F in New Orleans, LA
Annual Precipitation
32.8 in
62.3 in
+29.5 in in New Orleans, LA

Gas

Regular Gasoline
$3.85/gal
$3.62/gal
+6% in Ann Arbor, MI

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

Public Transit

Base Fare (one-way)
—
$1.25

Adult base one-way fare — — vs New Orleans RTA (2026).

Utilities

Electricity (¢/kWh)
23.0
13.5
+41% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$16.62
+16% in Ann Arbor, MI

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

Groceries

Milk (gal)
$4.31
$4.00
+7% in Ann Arbor, MI
Bread (lb)
$1.66
$1.75
+5% in New Orleans, LA
Eggs (doz)
$3.63
$2.21
+39% in Ann Arbor, MI
Ground Beef (lb)
$6.77
$6.45
+5% in Ann Arbor, MI
Chicken (lb)
$2.10
$1.90
+9% in Ann Arbor, MI
Bananas (lb)
$0.62
$0.62
about equal

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

State Taxes

Sales Tax (MI / LA)
6%
5%
+1.0 pp in MI
Income Tax (top rate)
4.25%
3.00%
+1.3 pp in MI

Ann Arbor vs New Orleans — FAQ

Is it cheaper to live in Ann Arbor or New Orleans?
New Orleans, LA is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 28% 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 New Orleans?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $41,000 in New Orleans.
Which has lower taxes, Ann Arbor or New Orleans?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); New Orleans under Louisiana's (a top state income tax rate of 3.00% and a 5% 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).