What is Cost of Living?
Cost of living refers to the amount of money a person needs in order to maintain a certain standard of living in a particular area. This includes the costs of housing, food, transportation, health care, taxes, and other necessities. Every city or state has a different cost of living and learning about this type of information can be helpful if you are thinking of relocating, as this would give you an idea whether you can afford to live comfortably in the area you are considering to move to.
Another factor that need to consider when assessing the affordability of one place over another is the cost of living index – a theoretical price index that measures the relative cost of living in a particular location over a specific period of time. When you are comparing the cost of living index of two or more locations, the values of the primary location are all fixed at 100, whereas the values of the other location/s that is/are being compared to it could be higher or lower than 100, depending on the actual costs of the basic goods and services in these areas.
2020 Cost of Living Index in Plymouth, Canton, and Livonia, MI
If you are considering relocating to Plymouth, Canton, or Livonia in Michigan and would like to see if your expected income will allow you to at least be able to maintain the same lifestyle as the one you have in your current place of residence, the table below would be helpful. This table shows the cost of living indexes for Plymouth, Canton, and Livonia, along with that of the state of Michigan and the United States. In this table, the primary location is the United States and all of the values under the column for the United States are constant at 100, while the ones for the other four locations will be either higher or lower than 100.
|COST OF LIVING||Plymouth||Canton||Livonia||Michigan||United States|
Based on this table, you can see that the overall cost of living indexes for Plymouth, Canton, and Livonia are 124, 110.2, and 99.2, respectively. In Plymouth, you will notice that housing is the highest expense, at an index of 153.2, while health care is the lowest, at 84.3. In Canton, however, transportation is the biggest expense, at an index of 128.8, while health care is also the lowest, at 84.3. Similar to Canton, Livonia’s highest expense is transportation, at an index of 123.3, and health care is also the lowest, at 84.3. Among these three locations, Livonia has the lowest cost of living, at 99.2, followed by Canton at 110.2. Plymouth has the highest cost of living, at 124.
The median home cost of homes in Plymouth is $354,200, which is the highest among the three locations in Michigan. This is followed by Canton, whose median home cost is $279,800. The lowest of the three would be Livonia, at $209,000. Across the state of Michigan, the median home cost is $151,400, which is significantly lower than the national median value of $231,200.
Cost of Food and Groceries
Across the three locations in South East Michigan, food and groceries are relatively affordable. Milk costs $1.27, 35.3% lower than the national average cost of $1.96. The average cost of ground beef is $3.92, slightly higher than the national average of $3.90. Fried chicken costs 19.8% lower than the national average of $1.12, at $1.40. Pizza costs an average of $10.49, 10 cents higher than the national average.
Cost of Utilities
The average monthly electricity bill amounts to $152.80, while the national average is higher by 8.8%, at. $167.60. Phone expenses are higher at $175.97 compared to the national average of $163.42.
Health care in these parts of Michigan are much lower compared to other states. For instance, a visit to a general physician would cost approximately $100.00, 13.2% lower than the national average of $115.25. A dental appointment would generally cost $93.78, while the national average is $98.38. Going to an optometrist to have your eyes checked would cost an average of $83.25, 21.7% lower than the national average of $106.34.
On average, gasoline in Plymouth, Canton, and Livonia costs $2.90 per gallon, slightly higher than the national average of $2.59. The rate for tire balancing costs around $59.77, also higher than the national average of $48.90.
In the state of Michigan, sales tax is 6% and income tax is 4.25%. Sales taxes are taxes that are imposed on goods and services sold. These vary by state and can range from no tax at all to upwards of 7%. On the other hand, income tax is the tax imposed by the government on revenues. Income tax rates vary by state and may increase or decrease depending on the corresponding tax bracket of the individual. To learn more about the taxes in Michigan, click this link.
Moving to Plymouth, Canton, or Livonia in Michigan
If you are considering moving to Plymouth, Canton, or Livonia in Michigan, one of the things you would need to assess and determine is whether you can afford to live comfortably in these areas. By learning about the cost of living index of these places and comparing these with your current location, you will be able to arrive at an informed decision.
Once you have decided to move in any of these wonderful locations and buy a home, you will need a reliable real estate professional to assist you throughout the whole process of your home purchase. We will be more than happy to show you the best options for you in the market and ensure that you get the most from your home purchase. Feel free to give us a call at (734) 245-8555 or send us an email at [email protected] if you have any questions or if you would like to schedule an appointment.