Michigan vs Alabama: cost of living compared
Statewide price levels and incomes from BEA (2024); gas prices from EIA (weekly).
Is it cheaper to live in Michigan or Alabama?
- Overall, Alabama is 7.7% less expensive than Michigan (BEA, 2024).
- To keep the same standard of living, $75,000 in Michigan works out to about $69,200 in Alabama, before taxes.
- Most of the difference is housing, which costs 25.0% less in Alabama. Goods are 0.4% higher and other services 4.2% lower.
- Utility prices (electricity, gas, water) are 15.5% lower in Alabama.
- After adjusting for local prices, personal income per person is $52,216 in Alabama and $53,569 in Michigan (2.5% lower in Alabama; BEA, 2024, in 2017 dollars).
- Inside each state, metro price levels run from 83.8 in Dothan, AL to 94.7 in Daphne, AL (Alabama) and from 90.5 in Battle Creek, MI to 100.9 in Ann Arbor, MI (Michigan), US = 100.
- The gap is about where it was in 2019 (7.4%).
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: 25.0% lower in Alabama than in Michigan
Price level by category, 2024. US average = 100.
- Michigan
- Alabama
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by metropolitan area, 2024 (US = 100).
Show the numbers
| Michigan | Alabama | |
|---|---|---|
| All items | 96.2 | 88.8 |
| Goods | 96.0 | 96.4 |
| Housing (rents) | 82.3 | 61.8 |
| Utilities | 100.2 | 84.6 |
| Other services | 100.9 | 96.7 |
| Category | Michigan | Alabama | Alabama vs Michigan |
|---|---|---|---|
| All items | 96.2 | 88.8 | −7.7% |
| Goods | 96.0 | 96.4 | +0.4% |
| Housing (rents) | 82.3 | 61.8 | −25.0% |
| Utilities | 100.2 | 84.6 | −15.5% |
| Other services | 100.9 | 96.7 | −4.2% |
| Income per person, adjusted for prices | $53,569 | $52,216 | −2.5% |
| Regular gas, week of October 19, 2026* | $4.14 | $3.78 | −8.7% |
| Salary to match $75,000 in Michigan | $75,000 | $69,200 | −7.7% |
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). *Gulf Coast region average (EIA has no separate Alabama figure).
Cheapest and most expensive places in each state
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
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
Metro areas ordered from cheapest to most expensive. BEA, 2024, US = 100.
How the gap has changed since 2008
The price gap between Michigan and Alabama has been fairly stable since 2008
Overall price level each year, 2008–2024. US average = 100.
- Michigan
- Alabama
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Michigan | Alabama | |
|---|---|---|
| 2008 | 95.9 | 88.9 |
| 2009 | 96.0 | 87.8 |
| 2010 | 96.2 | 89.8 |
| 2011 | 95.2 | 90.0 |
| 2012 | 95.0 | 90.6 |
| 2013 | 95.2 | 90.3 |
| 2014 | 95.5 | 90.2 |
| 2015 | 93.7 | 89.7 |
| 2016 | 93.6 | 90.6 |
| 2017 | 92.7 | 90.1 |
| 2018 | 94.5 | 87.4 |
| 2019 | 95.4 | 88.3 |
| 2020 | 94.4 | 87.6 |
| 2021 | 94.3 | 88.1 |
| 2022 | 93.6 | 88.0 |
| 2023 | 94.3 | 89.1 |
| 2024 | 96.2 | 88.8 |
Goods
- Michigan
- Alabama
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Michigan | Alabama | |
|---|---|---|
| 2008 | 95.3 | 96.0 |
| 2009 | 97.7 | 94.0 |
| 2010 | 98.2 | 96.4 |
| 2011 | 98.5 | 96.0 |
| 2012 | 98.2 | 95.2 |
| 2013 | 98.4 | 96.2 |
| 2014 | 98.6 | 96.3 |
| 2015 | 97.8 | 95.2 |
| 2016 | 97.7 | 96.1 |
| 2017 | 97.3 | 95.5 |
| 2018 | 98.5 | 92.5 |
| 2019 | 96.1 | 94.6 |
| 2020 | 95.9 | 94.4 |
| 2021 | 94.7 | 93.9 |
| 2022 | 93.3 | 94.7 |
| 2023 | 95.8 | 94.6 |
| 2024 | 96.0 | 96.4 |
Housing (rents)
- Michigan
- Alabama
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Michigan | Alabama | |
|---|---|---|
| 2008 | 87.8 | 59.9 |
| 2009 | 85.0 | 60.1 |
| 2010 | 86.8 | 61.5 |
| 2011 | 83.9 | 60.9 |
| 2012 | 83.2 | 62.3 |
| 2013 | 82.7 | 61.4 |
| 2014 | 83.3 | 59.9 |
| 2015 | 80.7 | 59.2 |
| 2016 | 82.4 | 60.5 |
| 2017 | 81.0 | 61.1 |
| 2018 | 80.7 | 59.6 |
| 2019 | 82.0 | 60.3 |
| 2020 | 80.7 | 59.6 |
| 2021 | 80.7 | 60.6 |
| 2022 | 80.8 | 57.5 |
| 2023 | 78.9 | 61.6 |
| 2024 | 82.3 | 61.8 |
Utilities
- Michigan
- Alabama
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Michigan | Alabama | |
|---|---|---|
| 2008 | 95.8 | 90.9 |
| 2009 | 103.3 | 91.0 |
| 2010 | 104.8 | 93.0 |
| 2011 | 104.9 | 93.1 |
| 2012 | 106.4 | 95.1 |
| 2013 | 105.9 | 93.5 |
| 2014 | 99.3 | 94.3 |
| 2015 | 99.4 | 94.7 |
| 2016 | 100.0 | 94.7 |
| 2017 | 101.2 | 93.7 |
| 2018 | 102.4 | 88.0 |
| 2019 | 98.7 | 86.4 |
| 2020 | 103.1 | 84.8 |
| 2021 | 101.7 | 86.6 |
| 2022 | 97.7 | 88.0 |
| 2023 | 99.7 | 89.9 |
| 2024 | 100.2 | 84.6 |
Other services
- Michigan
- Alabama
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).
Show the numbers
| Michigan | Alabama | |
|---|---|---|
| 2008 | 99.3 | 97.8 |
| 2009 | 98.7 | 96.7 |
| 2010 | 97.8 | 98.4 |
| 2011 | 96.5 | 99.8 |
| 2012 | 96.5 | 100.8 |
| 2013 | 97.0 | 99.9 |
| 2014 | 97.4 | 99.9 |
| 2015 | 95.3 | 100.0 |
| 2016 | 94.6 | 100.6 |
| 2017 | 93.4 | 99.0 |
| 2018 | 96.2 | 95.9 |
| 2019 | 99.2 | 96.9 |
| 2020 | 98.1 | 96.5 |
| 2021 | 98.4 | 96.1 |
| 2022 | 97.9 | 97.1 |
| 2023 | 98.5 | 98.2 |
| 2024 | 100.9 | 96.7 |
What incomes buy in each state
Income per person after adjusting for prices: $52,216 in Alabama, $53,569 in Michigan
Real personal income per person, constant 2017 dollars (adjusted for each state's price level and for inflation).
- Michigan
- Alabama
- United States
Source: U.S. Bureau of Economic Analysis, real personal income by state (SARPI), 2008–2024.
Show the numbers
| Michigan | Alabama | United States | |
|---|---|---|---|
| 2008 | $41,949 | $42,219 | $45,816 |
| 2009 | $40,151 | $41,966 | $44,204 |
| 2010 | $40,986 | $41,709 | $44,808 |
| 2011 | $42,724 | $41,819 | $45,957 |
| 2012 | $43,541 | $41,592 | $46,796 |
| 2013 | $43,149 | $41,325 | $46,358 |
| 2014 | $44,089 | $41,984 | $47,661 |
| 2015 | $47,218 | $43,809 | $49,396 |
| 2016 | $48,000 | $43,554 | $49,828 |
| 2017 | $48,928 | $44,481 | $51,006 |
| 2018 | $48,921 | $46,440 | $52,242 |
| 2019 | $49,306 | $47,130 | $53,683 |
| 2020 | $53,586 | $50,186 | $56,514 |
| 2021 | $55,679 | $52,875 | $59,365 |
| 2022 | $53,454 | $50,649 | $57,104 |
| 2023 | $53,903 | $50,902 | $58,088 |
| 2024 | $53,569 | $52,216 | $59,195 |
More
- Cost of living in Michigan
- Cost of living in Alabama
- Reverse: moving from Alabama to Michigan
- 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.