A+
16%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
54%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Bay City Michigan National
Cost of living8489100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing4674100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Bay City, MI

Are you thinking about relocating, but curious about the potential cost of living in Bay City? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Bay City stands at 84, making it 16% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

Housing expenses can absorb a substantial portion of your net income, sometimes exceeding 30%. Thankfully, Bay City stands out by reporting housing costs that are 54.2% 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 Bay City can allocate a more reasonable portion of their income to housing, allowing for greater financial flexibility.

Is Bay City Affordable?

Is Bay City affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Bay City, the median home price is 63.2% lower than the national average and monthly rent prices are 33.1% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Bay City boasting a median household income of $38,014, 31.3% lower than the national average.

What Factors can Influence the Cost of Living in Bay City?

Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Bay City, the utilities index is 5.6% lower than the national average.

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Bay City, the groceries index is 3.4% higher than the national average.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Bay City, the transportation index is 0.5% lower than the national average.

Where is the Data From?

The cost of living data in Bay City displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Bay City is 6% lower than the Michigan average
  • The cost of living in Bay City is 16% lower than the national average
  • Bay City housing is 54% lower than the national average
  • Michigan general sales tax is 18% higher than the national average
  • Michigan state income tax is 64% higher than the national average

Most Affordable Places to Live in and Around Bay City

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Compare Bay City, MI Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$44,733$3,728$1,044$1,342
      Renters$22,526$1,877$526$676
      The affordability of the housing market in Bay City, MI as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Bay City homeowners, the median income is $44,733. This indicates that a monthly maximum of $1,044 should be spent by homeowners on all housing related costs. Renters have a median income of $22,526. This indicates that renters would have a maximum of $526 for their rent related monthly costs.

      Michigan Sales Tax

      State General Sales Tax With Max Surtax
      Michigan 6% 6%

      Michigan Income Tax

      State Income Tax (Low) Income Tax (High)
      Michigan 4.25% 4.25%

      Goods & Services

      Item Bay City National avg. Difference
      Haircut $16.80$24.2630.8%
      Beauty Salon $24.78$45.5645.6%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.13$1.2811.8%
      Movie $12.99$12.137.1%
      Bowling $12.33$18.0031.5%

      Groceries

      Item Bay City National avg. Difference
      Ground Beef $5.75$5.841.5%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.78$4.672.3%
      Potatoes $4.80$4.932.8%
      Pizza $8.99$12.0925.6%
      Beer $9.04$10.4113.2%

      Health Care

      Item Bay City National avg. Difference
      Optometrist $85.00$125.6832.4%
      Doctor $103.33$135.7823.9%
      Dentist $91.00$113.2919.7%
      Ibuprofen $10.22$10.654.1%
      Lipitor $490.11$468.604.6%

      Housing

      Item Bay City National avg. Difference
      Home Price $68,000.00$184,700.0063.2%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $635.00$949.0033.1%

      Transportation

      Item Bay City National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Bay City National avg. Difference
      All Electricity $219.20$193.9913.0%
      Phone $184.44$192.254.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Robin Glen-Indiantown, MI7108118.5%
      Saginaw, MI48,4078217.8%
      Buena Vista, MI6,4018317.1%
      Zilwaukee, MI1,7548811.6%
      Auburn, MI1,990919.4%
      Bay City, MI32,8928415.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Parkland, FL32,87816969.3%
      Nacogdoches, TX32,912919.2%
      Pikesville, MD32,87112423.7%
      Val-d'Or, QC32,869n/a 
      Lewiston, ID32,8531033.4%
      Bay City, MI32,8928415.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.