Cost of Living in Muskegon, MI

An Overview of Cost of Living in Muskegon, MI

Understanding the cost of living in Muskegon 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 Muskegon cost of living index is 81, which is 19% 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 expenses can absorb a substantial portion of your net income, sometimes exceeding 30%. Thankfully, Muskegon stands out by reporting housing costs that are 47.3% lower than the national average. This signifies that both homeownership and rental expenses in this region are considerably more budget-friendly compared to the rest of the country. With such favorable housing affordability, residents of Muskegon can allocate a more reasonable portion of their income to housing, allowing for greater financial flexibility.

What Do Locals Say About the Cost of Living in Muskegon?

Nobody knows their city better than the people who actually live there. So, we asked 5 local residents how they would rate the cost of living in Muskegon and this is how they responded. 80% of people said that the cost of living was affordable, with prices decreasing, while 20% of people said that the cost of living was very expensive and prices continue to rise.

Is Muskegon Affordable?

Is Muskegon an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Muskegon is 58.2% lower than the national average, while the average monthly rent prices are 21.9% lower than average. The affordability of any location can also be influenced by median income levels. Muskegon has a median household income of $35,323, which is 36.2% lower than the national average.

What Factors can Influence the Cost of Living in Muskegon?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Muskegon comes in at 2.3% higher than the national average.

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 Muskegon, the transportation index is 5.1% lower than the national average.

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Muskegon, the groceries index is 5.3% lower than the national average.

Where is the Data From?

The cost of living in Muskegon, 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.