Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Paterson

New Jersey

$1,430/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 $1,430 in Paterson, NJ. Overall, Paterson, NJ is roughly 12% 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 $53,766 in Paterson, NJ — about 34% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Ann Arbor, MI
Paterson, NJ

Rent

Studio
$1,274
$786
+38% in Ann Arbor, MI
1 Bedroom
$1,389
$1,183
+15% in Ann Arbor, MI
2 Bedroom
$1,692
$1,468
+13% in Ann Arbor, MI
3 Bedroom
$1,812
$1,729
+5% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$335,400
+23% in Ann Arbor, MI

Income

Median Household Income
$81,089
$53,766
+34% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$61,430
+11% in Paterson, NJ

People & Lifestyle

Median Age
27.7 yr
33.3 yr
+5.6 yr in Paterson, NJ
Homeownership
45.6%
26.2%
+19.4 pp in Ann Arbor, MI
Bachelor's+ (25+)
77.7%
12.5%
+65.2 pp in Ann Arbor, MI
Avg Commute
19.9 min
23.1 min
+3.2 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime
311
1,010.1
+225% in Paterson, NJ
Property Crime
1,744.5
2,391.4
+37% in Paterson, NJ

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
52.2°F
+4.5°F in Paterson, NJ
Annual Precipitation
32.8 in
49.0 in
+16.2 in in Paterson, NJ

Gas

Regular Gasoline
$3.85/gal
$3.94/gal
+2% in Paterson, NJ

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)
23.0
24.9
+9% in Paterson, NJ
Natural Gas ($/MCF)
$19.72
$17.68
+10% in Ann Arbor, MI

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

Groceries

Milk (gal)
$4.31
$4.31
about equal
Bread (lb)
$1.66
$1.92
+16% in Paterson, NJ
Eggs (doz)
$3.63
$2.19
+40% in Ann Arbor, MI
Ground Beef (lb)
$6.77
$6.90
+2% in Paterson, NJ
Chicken (lb)
$2.10
$2.19
+4% in Paterson, NJ
Bananas (lb)
$0.62
$0.69
+12% in Paterson, NJ

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

State Taxes

Sales Tax (MI / NJ)
6%
6.625%
+0.6 pp in NJ
Income Tax (top rate)
4.25%
10.75%
+6.5 pp in NJ

Ann Arbor vs Paterson — FAQ

Is it cheaper to live in Ann Arbor or Paterson?
Paterson, NJ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 12% 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 Paterson?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $47,000 in Paterson.
Which has lower taxes, Ann Arbor or Paterson?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).