Is it cheaper to live in Ann Arbor or Raleigh?

Raleigh, NC is cheaper. Its monthly baseline of $1,510 (1BR rent + utilities) runs about 7% below Ann Arbor, MI's $1,630, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $53,000 in Raleigh.

Which has lower taxes, Ann Arbor or Raleigh?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% state sales tax).

Ann Arbor vs Raleigh Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Raleigh

North Carolina

$1,510/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 $1,510 in Raleigh, NC. Overall, Raleigh, NC is roughly 7% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by electricity costs.

Median household income is $81,089 in Ann Arbor, MI and $82,424 in Raleigh, NC — about 2% higher in Raleigh, NC. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; North Carolina has a top state income tax rate of 3.99% and a 4.75% state sales tax.

Ann Arbor, MI

Raleigh, NC

Rent

Studio

$1,274

$1,301

+2% in Raleigh, NC

1 Bedroom

$1,389

$1,323

+5% in Ann Arbor, MI

2 Bedroom

$1,692

$1,462

+14% in Ann Arbor, MI

3 Bedroom

$1,812

$1,715

+5% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$377,800

+13% in Ann Arbor, MI

Income

Median Household Income

$81,089

$82,424

+2% in Raleigh, NC

Metro Median Wage (annual)

$55,380

$51,990

+6% in Ann Arbor, MI

People & Lifestyle

Median Age

27.7 yr

34.7 yr

+7.0 yr in Raleigh, NC

Homeownership

45.6%

51.2%

+5.6 pp in Raleigh, NC

Bachelor's+ (25+)

77.7%

52.9%

+24.8 pp in Ann Arbor, MI

Avg Commute

19.9 min

23.4 min

+3.5 min in Raleigh, NC

Crime (per 100k/yr)

Violent Crime

311

491.5

+58% in Raleigh, NC

Property Crime

1,744.5

2,838.4

+63% in Raleigh, NC

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

60.6°F

+12.9°F in Raleigh, NC

Annual Precipitation

32.8 in

46.0 in

+13.2 in in Raleigh, NC

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Raleigh, NC

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

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs GoRaleigh (2026).

Utilities

Electricity (¢/kWh)

23.0

14.7

+36% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$30.10

+53% in Raleigh, NC

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 Raleigh, NC

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

about equal

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

State Taxes

Sales Tax (MI / NC)

4.75%

+1.3 pp in MI

Income Tax (top rate)

4.25%

3.99%

+0.3 pp in MI

Ann Arbor vs Raleigh — FAQ

Is it cheaper to live in Ann Arbor or Raleigh?: Raleigh, NC is cheaper. Its monthly baseline of $1,510 (1BR rent + utilities) runs about 7% below Ann Arbor, MI's $1,630, mainly because of electricity costs.
How much more do you need to earn to live in Ann Arbor than in Raleigh?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $53,000 in Raleigh.
Which has lower taxes, Ann Arbor or Raleigh?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% 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).