Alabama vs Michigan: cost of living compared
Statewide price levels and incomes from BEA (2024); gas prices from EIA (weekly).
Is it cheaper to live in Alabama or Michigan?
- Overall, Michigan is 8.3% more expensive than Alabama (BEA, 2024).
- To keep the same standard of living, $75,000 in Alabama works out to about $81,200 in Michigan, before taxes.
- Most of the difference is housing, which costs 33.3% more in Michigan. Goods are 0.4% lower and other services 4.4% higher.
- Utility prices (electricity, gas, water) are 18.3% higher in Michigan.
- After adjusting for local prices, personal income per person is $53,569 in Michigan and $52,216 in Alabama (2.6% higher in Michigan; BEA, 2024, in 2017 dollars).
- Inside each state, metro price levels run from 90.5 in Battle Creek, MI to 100.9 in Ann Arbor, MI (Michigan) and from 83.8 in Dothan, AL to 94.7 in Daphne, AL (Alabama), US = 100.
- The gap is about where it was in 2019 (8.0%).
derived Calculated from BEA Regional Price Parities and real personal income by state. Statewide averages mix cities and rural areas; taxes are not included. How we calculate.
Category by category
Both states against the US average (100).
Housing drives the gap: 33.3% higher in Michigan than in Alabama
Price level by category, 2024. US average = 100.
- Alabama
- Michigan
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by metropolitan area, 2024 (US = 100).
Show the numbers
| Alabama | Michigan | |
|---|---|---|
| All items | 88.8 | 96.2 |
| Goods | 96.4 | 96.0 |
| Housing (rents) | 61.8 | 82.3 |
| Utilities | 84.6 | 100.2 |
| Other services | 96.7 | 100.9 |
| Category | Alabama | Michigan | Michigan vs Alabama |
|---|---|---|---|
| All items | 88.8 | 96.2 | +8.3% |
| Goods | 96.4 | 96.0 | −0.4% |
| Housing (rents) | 61.8 | 82.3 | +33.3% |
| Utilities | 84.6 | 100.2 | +18.3% |
| Other services | 96.7 | 100.9 | +4.4% |
| Income per person, adjusted for prices | $52,216 | $53,569 | +2.6% |
| Regular gas, week of October 19, 2026* | $3.78 | $4.14 | +9.5% |
| Salary to match $75,000 in Alabama | $75,000 | $81,200 | +8.3% |
Index values: BEA, 2024, US = 100. Income: BEA real personal income per person, 2017 dollars. Gas: EIA weekly retail prices. *Gulf Coast region average (EIA has no separate Alabama figure). *Midwest region average (EIA has no separate Michigan figure).
Cheapest and most expensive places in each state
Alabama
- Dothan, AL 83.8
- Florence, AL 84.8
- Gadsden, AL 85.7
- Anniston, AL 85.9
- Decatur, AL 87.2
- Tuscaloosa, AL 87.7
- Auburn, AL 87.9
- Mobile, AL 88.1
- Columbus, GA 89.3
- Montgomery, AL 89.7
- Birmingham, AL 91.6
- Huntsville, AL 93.1
- Daphne, AL 94.7
Michigan
- Battle Creek, MI 90.5
- Saginaw, MI 90.9
- Jackson, MI 91.8
- Bay City, MI 91.9
- Midland, MI 91.9
- Niles, MI 92.4
- Muskegon, MI 92.5
- South Bend, IN 92.9
- Flint, MI 93.0
- Traverse City, MI 93.4
- Monroe, MI 93.5
- Kalamazoo, MI 94.8
- Lansing, MI 95.0
- Grand Rapids, MI 95.5
- Detroit, MI 100.3
- Ann Arbor, MI 100.9
Metro areas ordered from cheapest to most expensive. BEA, 2024, US = 100.
How the gap has changed since 2008
The price gap between Alabama and Michigan has been fairly stable since 2008
Overall price level each year, 2008–2024. US average = 100.
- Alabama
- Michigan
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Alabama | Michigan | |
|---|---|---|
| 2008 | 88.9 | 95.9 |
| 2009 | 87.8 | 96.0 |
| 2010 | 89.8 | 96.2 |
| 2011 | 90.0 | 95.2 |
| 2012 | 90.6 | 95.0 |
| 2013 | 90.3 | 95.2 |
| 2014 | 90.2 | 95.5 |
| 2015 | 89.7 | 93.7 |
| 2016 | 90.6 | 93.6 |
| 2017 | 90.1 | 92.7 |
| 2018 | 87.4 | 94.5 |
| 2019 | 88.3 | 95.4 |
| 2020 | 87.6 | 94.4 |
| 2021 | 88.1 | 94.3 |
| 2022 | 88.0 | 93.6 |
| 2023 | 89.1 | 94.3 |
| 2024 | 88.8 | 96.2 |
Goods
- Alabama
- Michigan
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Alabama | Michigan | |
|---|---|---|
| 2008 | 96.0 | 95.3 |
| 2009 | 94.0 | 97.7 |
| 2010 | 96.4 | 98.2 |
| 2011 | 96.0 | 98.5 |
| 2012 | 95.2 | 98.2 |
| 2013 | 96.2 | 98.4 |
| 2014 | 96.3 | 98.6 |
| 2015 | 95.2 | 97.8 |
| 2016 | 96.1 | 97.7 |
| 2017 | 95.5 | 97.3 |
| 2018 | 92.5 | 98.5 |
| 2019 | 94.6 | 96.1 |
| 2020 | 94.4 | 95.9 |
| 2021 | 93.9 | 94.7 |
| 2022 | 94.7 | 93.3 |
| 2023 | 94.6 | 95.8 |
| 2024 | 96.4 | 96.0 |
Housing (rents)
- Alabama
- Michigan
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Alabama | Michigan | |
|---|---|---|
| 2008 | 59.9 | 87.8 |
| 2009 | 60.1 | 85.0 |
| 2010 | 61.5 | 86.8 |
| 2011 | 60.9 | 83.9 |
| 2012 | 62.3 | 83.2 |
| 2013 | 61.4 | 82.7 |
| 2014 | 59.9 | 83.3 |
| 2015 | 59.2 | 80.7 |
| 2016 | 60.5 | 82.4 |
| 2017 | 61.1 | 81.0 |
| 2018 | 59.6 | 80.7 |
| 2019 | 60.3 | 82.0 |
| 2020 | 59.6 | 80.7 |
| 2021 | 60.6 | 80.7 |
| 2022 | 57.5 | 80.8 |
| 2023 | 61.6 | 78.9 |
| 2024 | 61.8 | 82.3 |
Utilities
- Alabama
- Michigan
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Alabama | Michigan | |
|---|---|---|
| 2008 | 90.9 | 95.8 |
| 2009 | 91.0 | 103.3 |
| 2010 | 93.0 | 104.8 |
| 2011 | 93.1 | 104.9 |
| 2012 | 95.1 | 106.4 |
| 2013 | 93.5 | 105.9 |
| 2014 | 94.3 | 99.3 |
| 2015 | 94.7 | 99.4 |
| 2016 | 94.7 | 100.0 |
| 2017 | 93.7 | 101.2 |
| 2018 | 88.0 | 102.4 |
| 2019 | 86.4 | 98.7 |
| 2020 | 84.8 | 103.1 |
| 2021 | 86.6 | 101.7 |
| 2022 | 88.0 | 97.7 |
| 2023 | 89.9 | 99.7 |
| 2024 | 84.6 | 100.2 |
Other services
- Alabama
- Michigan
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Alabama | Michigan | |
|---|---|---|
| 2008 | 97.8 | 99.3 |
| 2009 | 96.7 | 98.7 |
| 2010 | 98.4 | 97.8 |
| 2011 | 99.8 | 96.5 |
| 2012 | 100.8 | 96.5 |
| 2013 | 99.9 | 97.0 |
| 2014 | 99.9 | 97.4 |
| 2015 | 100.0 | 95.3 |
| 2016 | 100.6 | 94.6 |
| 2017 | 99.0 | 93.4 |
| 2018 | 95.9 | 96.2 |
| 2019 | 96.9 | 99.2 |
| 2020 | 96.5 | 98.1 |
| 2021 | 96.1 | 98.4 |
| 2022 | 97.1 | 97.9 |
| 2023 | 98.2 | 98.5 |
| 2024 | 96.7 | 100.9 |
What incomes buy in each state
Income per person after adjusting for prices: $53,569 in Michigan, $52,216 in Alabama
Real personal income per person, constant 2017 dollars (adjusted for each state's price level and for inflation).
- Alabama
- Michigan
- United States
Source: U.S. Bureau of Economic Analysis, real personal income by state (SARPI), 2008–2024.
Show the numbers
| Alabama | Michigan | United States | |
|---|---|---|---|
| 2008 | $42,219 | $41,949 | $45,816 |
| 2009 | $41,966 | $40,151 | $44,204 |
| 2010 | $41,709 | $40,986 | $44,808 |
| 2011 | $41,819 | $42,724 | $45,957 |
| 2012 | $41,592 | $43,541 | $46,796 |
| 2013 | $41,325 | $43,149 | $46,358 |
| 2014 | $41,984 | $44,089 | $47,661 |
| 2015 | $43,809 | $47,218 | $49,396 |
| 2016 | $43,554 | $48,000 | $49,828 |
| 2017 | $44,481 | $48,928 | $51,006 |
| 2018 | $46,440 | $48,921 | $52,242 |
| 2019 | $47,130 | $49,306 | $53,683 |
| 2020 | $50,186 | $53,586 | $56,514 |
| 2021 | $52,875 | $55,679 | $59,365 |
| 2022 | $50,649 | $53,454 | $57,104 |
| 2023 | $50,902 | $53,903 | $58,088 |
| 2024 | $52,216 | $53,569 | $59,195 |
More
- Cost of living in Alabama
- Cost of living in Michigan
- Reverse: moving from Michigan to Alabama
- All states ranked
Related state comparisons
What this comparison leaves out
- Taxes. State income, sales and property taxes differ a lot between states and are not included.
- Where you live inside the state. Statewide figures average cities and rural areas; the metro lists above show the spread.
- Your own spending mix. The default uses an average household. Use the housing slider if housing is a bigger share of your budget.
- Timing. BEA price levels and incomes are for 2024; gas prices are weekly.