Cost of Living in Detroit, MI
Detroit is about 10% cheaper than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Detroit at a Glance
On the median income of $39,209, state income tax is roughly $1,666/year.
Sources: Census ACS 2024, Tax Foundation.
Detroit has the most affordable housing of any major American city, and it is not close. The median home price of about $85,000 means homeownership is possible on incomes that would barely cover rent in most cities. But Detroit is not a simple value play. The city has genuine revitalization in its core (Midtown, Corktown, downtown) alongside neighborhoods that remain deeply challenged. The 2.4% city income tax and high property tax rate (2.35%) are unique costs. For the right person, Detroit offers an extraordinary opportunity to build equity in a historic American city that is writing its next chapter.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Detroit
The revitalized core is real. Midtown has restaurants, coffee shops, and a walkable urban feel. Corktown (the oldest neighborhood) has become a food destination. The Detroit Institute of Arts is one of the best art museums in America. The music heritage (Motown, techno, rock) is deep. The entrepreneurial energy in the revitalized areas is palpable. Major employers include GM, Ford, Quicken Loans/Rocket Mortgage (Dan Gilbert's downtown investment has been transformative), and the health systems.
Neighborhoods
Midtown is the walkable cultural core near Wayne State and the DIA. Corktown has the food scene and Michigan Central Station redevelopment. Downtown has Dan Gilbert's investments and the Riverwalk. Eastern Market is the food market district. Southwest Detroit has authentic Mexican-American culture. Indian Village and Palmer Woods have stunning homes at a fraction of their replacement cost. The Grosse Pointes are affluent east-side suburbs.
Things to Consider
Large sections of the city remain challenged with poverty, blight, and crime. The city's population has declined from 1.8 million to 640,000. City services are stretched. The 2.4% city income tax plus Michigan's 4.25% state rate creates a combined 6.65% income tax. Property taxes are very high. Auto insurance in Michigan remains expensive. Winters are cold and gray. The contrast between revitalized pockets and struggling neighborhoods is stark.
Compare Detroit To...
Frequently Asked Questions About Detroit
Yes, that is the citywide median. In revitalized neighborhoods like Corktown or West Village, prices are $200,000-$500,000, well above the median but still far below national averages. In emerging neighborhoods, quality homes sell for $100,000-$200,000. In challenged areas, homes sell for $20,000-$60,000 or less. The price depends entirely on neighborhood and condition.
In the core, yes. Midtown, Corktown, downtown, and several adjacent neighborhoods have seen genuine investment, new restaurants, housing renovation, and population growth. Dan Gilbert's Bedrock real estate has invested billions in downtown. The issue is scale: the revitalized area covers a few square miles in a city of 139 square miles. The challenge of extending revitalization to the broader city remains enormous.
Detroit residents pay Michigan's 4.25% state income tax plus a 2.4% city income tax, for a combined 6.65% on earned income. Non-residents working in Detroit pay 1.2% city tax. This combined rate is significantly higher than Michigan suburbs with no city tax. It is the main financial argument against choosing the city over the suburbs.