Ann Arbor, Michigan, is probably best known for the University of Michigan, home of the nationally ranked Wolverines football team. But in the last decade, the city has become increasingly popular as a place to settle down permanently. It offers top-rated public schools, a thriving job market and a vibrantly vintage downtown. In fact, in 2024, the U.S. News & World Report named Ann Arbor the No. 1 U.S. city for best quality of life.
What Is it Going to Cost to Live in Ann Arbor?
Moving to Ann Arbor means that you should be prepared to budget for housing costs and property taxes that are higher than average for the state of Michigan. Some other living costs, such as healthcare and groceries, also trend above the national average.
Housing Costs in Ann Arbor, MI
The average rent in Ann Arbor is $1,632 and the median home price is $480,000. These housing costs are higher than the state averages in Michigan. Homes close to downtown regularly sell for $1 million or more, and they are only getting more expensive. From 2022 to 2023, the median home price went up by 11%. In addition to high home prices, Ann Arbor is simply running out of houses to sell. There are usually less than 500 homes available, and houses in Ann Arbor are often on the market for less than 10 days.
Property Taxes Are High
Property taxes in Ann Arbor are among the highest in the state. In 2023, the property tax for Ann Arbor was around 2.5%. That’s more than the state average of 1.32% and the national average of 0.87%.
Day-to-Day Costs
When it comes to day-to-day expenses, Payscale reports that groceries in Ann Arbor cost 9% more than the national average and healthcare costs 27% more. However, transportation and utility costs are both 6% less.
What Makes Ann Arbor Stand Out?
There are plenty of things to do in Ann Arbor, regardless of whether you’re looking for a great food scene, festivals, sporting events or an escape to the great outdoors.
The Shopping and Dining Scene in Downtown Ann Arbor
Downtown Ann Arbor caters to a diverse crowd with dive bars, trendy breweries, quirky bookstores and upscale restaurants. The nearby Kerrytown neighborhood is known for its boutique shopping and is home to Zingerman’s, the city’s most beloved sandwich shop. There’s a common theme in Ann Arbor of locally sourced or handmade goods. This includes the weekly farmers market to the established Argus Farm Stop, a grocery store committed to paying their local farmers fairly. With walkable streets and median-protected bike lanes, most of the city has easy access to head downtown.
Local insight: “Blank Slate Creamery is in the oldest wooden commercial building in the city, and their homemade ice cream is absolutely the best in Michigan,” says Ann Arbor local, Chris Crockett.
Ann Arbor’s Arts Scene and Festivals
- Ann Arbor Art Fair: Every year, local galleries open their doors, and white tents go up for the Ann Arbor Art Fair, the largest juried art fair in the country. The art fair hosts 500,000 visitors who flood into the city for a weekend of live demonstrations, artisan booths and interactive exhibits.
- FoolMoon and FestiFool: One of Ann Arbor’s most unique events, FoolMoon is a late-night party celebrating anything that can light up. FestiFool happens a day later, and paper mâché puppets are the theme of this colorful public art parade.
- A2SF: The Ann Arbor Summer Festival lasts over three weeks and features daily concerts, outdoor movies, dance, theater and comedy performances.
- The Michigan Theater: The Michigan Theater has been entertaining locals for nearly 100 years and is home to the Ann Arbor Film Festival.
Game Day at the University of Michigan
University of Michigan football games bring the whole city to life. The U of M Stadium, or as the locals call it, the Big House, can host 110,000 cheering Wolverines fans. It is the largest stadium in the United States, and even if you don’t manage to snag a ticket, the surrounding parking lot is filled with eager fans ready to tailgate.
Local insight: “Local businesses and streets can get packed on game days, but there is a lull when the game is going on — that’s when all the locals come out to do their errands,” advises Meg Goldwyn, the café manager at Argus Farm Stop’s Packard Street location.
Outdoor Adventures in the Woods, River and Gardens
With over 1,200 acres of protected green space making up the city’s Nature Areas, it’s no wonder Ann Arbor’s nickname is “Tree Town.” There’s no shortage of wooded trails to explore, with some of the best running along the Huron River. Gallup Park is one of the prettiest riverside spots in the city, beloved by kayakers, paddleboarders and picnic-goers alike. The peonies at Nichols Arboretum are not to be missed in springtime, and the bonsai exhibit at the Matthaei Botanical Gardens is a particular standout.
Local insight: “Ordinance says that before any of our Nature Area land gets sold, it would have to get approved by a vote of citizens,” explains Tina Stevens with Ann Arbor Natural Area Preservation. “I can’t imagine a scenario where that would ever happen.”
Ann Arbor Public Schools Are Some of the Best in the Country
Niche awards Ann Arbor Public Schools with an A+, placing it among the top 2% of all U.S. public school systems. It’s the top district in Washtenaw County, and no school earns less than an A grade, so there really aren’t any bad options. Pioneer High School sits in the shadow of the Big House and has high-achieving sports programs to match. The magnet Community High School embraces creative and independent learning, as evidenced by its unofficial rainbow zebra mascot. Additionally, the city plans to renovate or completely rebuild almost every elementary school by 2030.
What Does the Job Market Look Like in Ann Arbor?
Ann Arbor has a strong job market, with unemployment rates below the national average. The city’s largest employer is the University of Michigan, and there are more educational job opportunities from Ann Arbor Public Schools and the nearby Eastern Michigan University. Healthcare at the city’s major hospitals is the second leading industry. In recent years, tech giants like VML, Thomson Reuters, and Duo Security have dominated an emerging tech sector. It’s a field that is only likely to grow as Ann Arbor SPARK, an economic development organization, works to support technology-related start-ups.
What Are the Residents of Ann Arbor Like?
The University of Michigan has around 50,000 students, which make up 41% of the city’s population. This means Ann Arbor has one of the youngest median ages in the United States, at 28. Ann Arbor is also rated as Wallet Hub’s No. 1 Most Educated City in America, with almost half of its residents having a graduate degree and more than 75% holding a bachelor’s degree.
A Quick Guide to Ann Arbor Neighborhoods
As a general rule, Ann Arbor neighborhoods get more expensive and older the closer they are to downtown. Check out Old West Side for 1800s Victorian homes just blocks away from downtown. If you plan on raising a family, any neighborhood around an elementary school comes with a strong community of parents. The expensive area around Burns Park Elementary feels right out of a storybook, and the homes around Lakewood Elementary and Thurston Elementary are more affordable options that often get overlooked. If you’ve got a large budget, the one-of-a-kind estates in Barton Hills and Ann Arbor Hills make up two of the city’s safest neighborhoods.
Local insight: “Trick or treating in Burns Park is ‘the’ place to go on Halloween. The homes on Granger Avenue go all out with decorations, king-size candy bars and haunted house walkthroughs,” says Brittany Patton, who grew up in the Burns Park neighborhood.
Finding Community and Living in Ann Arbor, Michigan
No matter the neighborhood, there are plenty of ways to find your community Ann Arbor, Michigan. Here are some of our top tips:
- Read the Ann Arbor Observer: This city newspaper has a comprehensive list of fun happenings every day of the month, which can be great places to meet people.
- Get a library card: People in Ann Arbor seriously love their library network, and for good reason. The libraries have kid’s story times, craft nights, teen groups and adult book clubs.
- Join a game night: Places like HOMES Brewing and Bløm Mead + Cider host weekly game nights open to all. Over at Vault of Midnight, there’s an Adventure League if you want to join a Dungeons & Dragons campaign.
- Meet other parents: If you have young kids, one of the best ways to meet other parents is to stick around after drop-off times or join Parent-Teacher Organizations.
- Join a sports team or fitness class: There are all sorts of adult and youth sports leagues in the city to join. Ann Arbor Ultimate welcomes all frisbee enthusiasts, and the Veteran’s Ice Arena has beginner hockey leagues. Ann Arbor Rec & Ed has plenty of options, too.
Virginia native Catherine Lashley loves exploring other areas of the country through her work. “Writing about a neighborhood feels like getting to know a new friend,” she says. “I enjoy spending time with them to find out their story.” Catherine is an experienced and thoughtful content writer with a bachelor’s in English from the College of William & Mary. Her previous experience in search engine optimization forms the backbone of her journalistic storytelling at Homes.com.
