Cost of Living in Highland Park, MI

An Overview of Cost of Living in Highland Park, MI

Understanding the cost of living in Highland Park can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Highland Park cost of living index is 82, which is 18% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, Highland Park distinguishes itself by reporting housing expenses that are 62.5% below the national average. This indicates that both owning a home and renting in this area are notably more budget-friendly compared to the rest of the nation. With such favorable housing affordability, residents of Highland Park can allocate more of their income to housing, enhancing their financial flexibility.

Is Highland Park Affordable?

Wondering if Highland Park 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 Highland Park, for example, the median home price is 72.8% lower than what folks pay nationally, and monthly rent is 38.4% lower than the usual rates. Plus, income levels matter too, with Highland Park boasting a median household income of $20,666, which is 62.6% lower than the national average.

What Factors can Influence the Cost of Living in Highland Park?

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Highland Park, the housing index stands at 62.5% lower than the national average.

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.

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Highland Park, the baseline sales tax rate begins at 6%, and income tax rates start at 4.25%.

Where is the Data From?

The cost of living in Highland Park, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.