City Comparison

Allentown vs Ann Arbor

Cost of Living Comparison · 2026

Allentown

Pennsylvania
98
Average
$232,000
Median Home
$1,225/mo
Median Rent
$55,500
Median Income

Ann Arbor

Michigan
114
Above Average
$400,000
Median Home
$1,600/mo
Median Rent
$65,024
Median Income

The Verdict

14.0%

Living in Allentown costs 14.0% less than Ann Arbor. To match the purchasing power of a $75,000 salary in Allentown, you would need $87,245 in Ann Arbor.

Category-by-Category Breakdown

Index values · National average = 100 · Lower is more affordable

Housing
109
Allentown
135
Ann Arbor
Groceries
101
Allentown
101
Ann Arbor
Utilities
102
Allentown
99
Ann Arbor
Transportation
103
Allentown
101
Ann Arbor
Healthcare
83
Allentown
101
Ann Arbor

Salary Equivalence

A $75,000 salary in Allentown has the same purchasing power as $87,245 in Ann Arbor.

Conversely, $75,000 in Ann Arbor equals $64,474 in Allentown.

Living in Allentown vs Ann Arbor

Housing Costs

Allentown's housing index of 109 is lower Ann Arbor's 135, translating to median home prices of $232,000 vs $400,000. The $168,000 difference in home prices means roughly $10,920 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,225/mo in Allentown compared to $1,600/mo in Ann Arbor, a monthly difference of $375.

Grocery & Food Costs

Grocery expenses index at 101 in Allentown and 101 in Ann Arbor. A household spending the national average of $475/month on groceries would pay approximately $480/month in Allentown vs $480/month in Ann Arbor. The difference in grocery costs between these cities is relatively minor and unlikely to be a deciding factor in relocation.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 102 in Allentown and 99 in Ann Arbor. Monthly utility bills average approximately $408 in Allentown vs $396 in Ann Arbor. Utility costs are relatively comparable between these two cities.

Healthcare

Healthcare costs index at 83 in Allentown and 101 in Ann Arbor. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 18-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $55,500 in Allentown and $65,024 in Ann Arbor. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $56,633 and $57,039 respectively. Ann Arbor residents come out ahead in real purchasing power.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $1,295/month to housing in Allentown vs $1,517/month in Ann Arbor. In Allentown, median rent of $1,225/mo fits within this budget. In Ann Arbor, median rent of $1,600/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Housing, where the gap is 26 index points — focus your budget analysis there.

Frequently Asked Questions

Allentown is 14.0% more affordable overall with an index of 98 vs 114.
A $75,000 salary in Allentown has equivalent purchasing power to approximately $87,245 in Ann Arbor, based on the cost of living difference.
Allentown's housing index is 109 with median homes at $232,000, while Ann Arbor's is 135 with median homes at $400,000.

Moving & Relocation Resources

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