Cost of Living in Farmington Hills, MI

An Overview of Cost of Living in Farmington Hills, MI

Understanding the cost of living in Farmington Hills can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Farmington Hills cost of living index is 113, which is 13% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs are a major factor in the Farmington Hills cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 40.6% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Farmington Hills Affordable?

Is Farmington Hills affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Farmington Hills, for instance, where the median home price falls 46.2% higher than the national average, and monthly rent rates are 27.6% higher than usual. Additionally, median income levels contribute to the equation, with Farmington Hills flaunting a median household income of $85,152, 53.9% higher than the national norm.

What Factors can Influence the Cost of Living in Farmington Hills?

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Farmington Hills, the utilities index registers 5.6% lower than the national average.

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Farmington Hills, the housing index is 40.6% higher than the national average.

Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Farmington Hills, healthcare costs are 2.2% higher than the national average.

Where is the Data From?

The Farmington Hills cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.