B+
6%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
20%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Berkley Michigan National
Cost of living10689100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing12074100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Berkley, MI

The cost of living in Berkley affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Berkley is 106, which is 6% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

The cost of living in Berkley aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Berkley residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Is Berkley Affordable?

Wondering if Berkley is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Berkley, for example, the median home price is 20.2% higher than what folks pay nationally, and monthly rent is 18.9% higher than the usual rates. Plus, income levels matter too, with Berkley boasting a median household income of $93,038, which is 68.2% higher than the national average.

What Factors can Influence the Cost of Living in Berkley?

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Berkley, the transportation index is 0.5% lower than the national average.

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Berkley, the housing index is 19.8% higher than the national average.

Where is the Data From?

The Berkley cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

New Real Estate Listings in Berkley Area
Search Homes for Sale in Berkley, MI

Cost Of Living Quick Facts

  • The cost of living in Berkley is 19% higher than the Michigan average
  • The cost of living in Berkley is 6% higher than the national average
  • Berkley housing is 20% higher than the national average
  • Michigan general sales tax is 18% higher than the national average
  • Michigan state income tax is 64% higher than the national average

Most Affordable Places to Live in and Around Berkley

See all the best places to live around Berkley

Compare Berkley, MI Cost of Living

      vs
      How would you rate the cost of living in Berkley?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Berkley?
      Write a review to give others more information about this area.
      See all Berkley poll results

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$99,261$8,272$2,316$2,978
      Renters$55,302$4,609$1,290$1,659
      The affordability of the housing market in Berkley, MI as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Berkley homeowners, the median income is $99,261. This indicates that a monthly maximum of $2,316 should be spent by homeowners on all housing related costs. Renters have a median income of $55,302. This indicates that renters would have a maximum of $1,290 for their rent related monthly costs.

      Michigan Sales Tax

      State General Sales Tax With Max Surtax
      Michigan 6% 6%

      Michigan Income Tax

      State Income Tax (Low) Income Tax (High)
      Michigan 4.25% 4.25%

      Goods & Services

      Item Berkley National avg. Difference
      Haircut $16.80$24.2630.8%
      Beauty Salon $24.78$45.5645.6%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.13$1.2811.8%
      Movie $12.99$12.137.1%
      Bowling $12.33$18.0031.5%

      Groceries

      Item Berkley National avg. Difference
      Ground Beef $5.75$5.841.5%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.78$4.672.3%
      Potatoes $4.80$4.932.8%
      Pizza $8.99$12.0925.6%
      Beer $9.04$10.4113.2%

      Health Care

      Item Berkley National avg. Difference
      Optometrist $85.00$125.6832.4%
      Doctor $103.33$135.7823.9%
      Dentist $91.00$113.2919.7%
      Ibuprofen $10.22$10.654.1%
      Lipitor $490.11$468.604.6%

      Housing

      Item Berkley National avg. Difference
      Home Price $222,100.00$184,700.0020.2%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $1,128.00$949.0018.9%

      Transportation

      Item Berkley National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Berkley National avg. Difference
      All Electricity $219.20$193.9913.0%
      Phone $184.44$192.254.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Highland Park, MI10,8188218.3%
      Detroit, MI672,3518415.5%
      Inkster, MI24,3988515.1%
      Hamtramck, MI21,7048614.3%
      Pontiac, MI59,7148613.5%
      Berkley, MI15,3521066.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Centerton, AR15,3451011.4%
      Leduc County, AB15,344n/a 
      Clarksdale, MS15,3427821.5%
      Westbury, NY15,33915554.7%
      Wilkinsburg, PA15,3678910.6%
      Berkley, MI15,3521066.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.