Side-by-side cost of living comparison for 2026
11% cheaper
Ann Arbor is 11% more affordable than Sacramento. A $75,000 salary in Sacramento is equivalent to $66,797 in Ann Arbor.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Michigan salaries · California salaries
Housing is typically the biggest factor in any cost-of-living comparison. Ann Arbor has a housing index of 135 while Sacramento sits at 163 (national average = 100). The median home in Ann Arbor costs $400,000 compared to $450,000 in Sacramento, a difference of $50,000. Monthly rent follows a similar pattern: $1,600 in Ann Arbor versus $1,700 in Sacramento.
Groceries and everyday expenses show a narrower gap: Ann Arbor scores 101 while Sacramento scores 104. Both cities are close to the national average for grocery costs.
Healthcare costs in Ann Arbor (101) are lower than Sacramento (106). Both are close to the national average.
Median household income in Ann Arbor is $65,024 compared to $64,660 in Sacramento. When adjusted for cost of living, income goes further in Ann Arbor.
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