California 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 California or Michigan?

  • Overall, Michigan is 13.1% less expensive than California (BEA, 2024).
  • To keep the same standard of living, $75,000 in California works out to about $65,200 in Michigan, before taxes.
  • Most of the difference is housing, which costs 46.7% less in Michigan. Goods are 9.5% lower and other services 1.6% lower.
  • Utility prices (electricity, gas, water) are 37.0% lower in Michigan.
  • After adjusting for local prices, personal income per person is $53,569 in Michigan and $63,028 in California (15.0% lower 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 95.2 in El Centro, CA to 115.6 in San Francisco, CA (California), US = 100.
  • The gap is about where it was in 2019 (14.2%).

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.

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18% matches BEA's average basket. Set your own share if housing takes more or less of your budget.

Category by category

Both states against the US average (100).

Housing drives the gap: 46.7% lower in Michigan than in California

Price level by category, 2024. US average = 100.

  • California
  • Michigan
All items
California: 110.7 Michigan: 96.2
Goods
California: 106.1 Michigan: 96.0
Housing (rents)
California: 154.3 Michigan: 82.3
Utilities
California: 158.9 Michigan: 100.2
Other services
California: 102.6 Michigan: 100.9

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by metropolitan area, 2024 (US = 100).

Show the numbers
CaliforniaMichigan
All items110.796.2
Goods106.196.0
Housing (rents)154.382.3
Utilities158.9100.2
Other services102.6100.9
CategoryCaliforniaMichiganMichigan vs California
All items110.796.2−13.1%
Goods106.196.0−9.5%
Housing (rents)154.382.3−46.7%
Utilities158.9100.2−37.0%
Other services102.6100.9−1.6%
Income per person, adjusted for prices $63,028 $53,569 −15.0%
Regular gas, week of October 19, 2026* $6.03 $4.14 −31.3%
Salary to match $75,000 in California $75,000 $65,200 −13.1%

Index values: BEA, 2024, US = 100. Income: BEA real personal income per person, 2017 dollars. Gas: EIA weekly retail prices. *Midwest region average (EIA has no separate Michigan figure).

Cheapest and most expensive places in each state

Metro areas ordered from cheapest to most expensive. BEA, 2024, US = 100.

How the gap has changed since 2008

The price gap between California and Michigan has been fairly stable since 2008

Overall price level each year, 2008–2024. US average = 100.

  • California
  • Michigan
US average = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
CaliforniaMichigan
2008111.295.9
2009110.796.0
2010109.796.2
2011109.595.2
2012109.795.0
2013109.795.2
2014109.995.5
2015110.793.7
2016110.093.6
2017111.092.7
2018111.994.5
2019111.195.4
2020111.994.4
2021111.994.3
2022112.693.6
2023112.294.3
2024110.796.2

Goods

  • California
  • Michigan
US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
CaliforniaMichigan
2008107.495.3
2009104.797.7
2010103.098.2
2011103.698.5
2012104.198.2
2013104.398.4
2014104.398.6
2015105.597.8
2016104.497.7
2017104.597.3
2018105.598.5
2019106.296.1
2020106.795.9
2021108.194.7
2022108.493.3
2023106.895.8
2024106.196.0

Housing (rents)

  • California
  • Michigan
US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
CaliforniaMichigan
2008161.487.8
2009160.485.0
2010158.086.8
2011157.183.9
2012156.283.2
2013155.782.7
2014157.983.3
2015158.080.7
2016160.182.4
2017162.581.0
2018163.880.7
2019164.682.0
2020166.380.7
2021165.080.7
2022160.180.8
2023157.878.9
2024154.382.3

Utilities

  • California
  • Michigan
US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
CaliforniaMichigan
2008111.495.8
2009112.8103.3
2010117.2104.8
2011115.3104.9
2012117.1106.4
2013121.4105.9
2014128.399.3
2015129.399.4
2016129.5100.0
2017130.7101.2
2018125.1102.4
2019131.098.7
2020133.5103.1
2021144.2101.7
2022152.397.7
2023147.399.7
2024158.9100.2

Other services

  • California
  • Michigan
US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
CaliforniaMichigan
2008101.999.3
2009102.098.7
2010101.797.8
2011101.696.5
2012101.996.5
2013101.897.0
2014101.997.4
2015102.895.3
2016101.994.6
2017103.393.4
2018104.396.2
2019102.499.2
2020101.998.1
2021102.198.4
2022103.997.9
2023104.498.5
2024102.6100.9

What incomes buy in each state

Income per person after adjusting for prices: $53,569 in Michigan, $63,028 in California

Real personal income per person, constant 2017 dollars (adjusted for each state's price level and for inflation).

  • California
  • Michigan
  • United States

Source: U.S. Bureau of Economic Analysis, real personal income by state (SARPI), 2008–2024.

Show the numbers
CaliforniaMichiganUnited States
2008$43,788$41,949$45,816
2009$42,377$40,151$44,204
2010$43,503$40,986$44,808
2011$44,844$42,724$45,957
2012$46,162$43,541$46,796
2013$45,826$43,149$46,358
2014$47,472$44,089$47,661
2015$50,054$47,218$49,396
2016$51,802$48,000$49,828
2017$52,569$48,928$51,006
2018$53,523$48,921$52,242
2019$55,931$49,306$53,683
2020$59,993$53,586$56,514
2021$63,373$55,679$59,365
2022$59,126$53,454$57,104
2023$60,100$53,903$58,088
2024$63,028$53,569$59,195

More

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.

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