Side-by-side cost of living comparison for 2026
7% cheaper
Tempe is 7% more affordable than Ann Arbor. A $75,000 salary in Ann Arbor is equivalent to $69,737 in Tempe.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Michigan salaries · Arizona salaries
Housing is typically the biggest factor in any cost-of-living comparison. Ann Arbor has a housing index of 135 while Tempe sits at 114 (national average = 100). The median home in Ann Arbor costs $400,000 compared to $400,000 in Tempe, a difference of $0. Monthly rent follows a similar pattern: $1,600 in Ann Arbor versus $1,600 in Tempe.
Groceries and everyday expenses show a narrower gap: Ann Arbor scores 101 while Tempe scores 100. Both cities are close to the national average for grocery costs.
Healthcare costs in Ann Arbor (101) are higher than Tempe (95). Both are close to the national average.
Median household income in Ann Arbor is $65,024 compared to $56,068 in Tempe. When adjusted for cost of living, income goes further in Tempe.
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