A+
14%
Overall NAT. AVG.
10%
Goods & Services NAT. AVG.
31%
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 Kalamazoo Michigan National
Cost of living8689100
Goods & Services9093100
Groceries9599100
Health care9493100
Housing6974100
Transportation9597100
Utilities102101100

An Overview of Cost of Living in Kalamazoo, MI

Understanding the cost of living in Kalamazoo 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 Kalamazoo cost of living index is 86, which is 14% lower 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.

What Do Locals Say About the Cost of Living in Kalamazoo?

The most insightful perspective on a city comes from its residents. We recently surveyed 12 locals to gauge their perception of the cost of living in Kalamazoo. The feedback revealed that 33% of respondents found the cost of living to be reasonable, with prices on the decline, while 67% regarded it as notably expensive with prices that continue to rise.

Is Kalamazoo Affordable?

Wondering if Kalamazoo is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Kalamazoo, for example, the median home price is 38.4% lower than what folks pay nationally, and monthly rent is 13.1% lower than the usual rates. Plus, income levels matter too, with Kalamazoo boasting a median household income of $43,222, which is 21.9% lower than the national average.

What Factors can Influence the Cost of Living in Kalamazoo?

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Kalamazoo, the groceries index is 5.3% lower than the national average.

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Kalamazoo, the general sales tax rate starts at 6%, and income tax rates begin at 4.25%.

Where is the Data From?

The cost of living in Kalamazoo, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Kalamazoo is 3% lower than the Michigan average
  • The cost of living in Kalamazoo is 14% lower than the national average
  • Kalamazoo housing is 31% 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 Kalamazoo

See all the best places to live around Kalamazoo

Compare Kalamazoo, 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$63,816$5,318$1,489$1,915
      Renters$29,808$2,484$695$894
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Kalamazoo, MI, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Kalamazoo homeowners, is $63,816. This would allow for a maximum of $1,489 per month to be spent on housing costs. For renters, the median monthly income is $29,808 which would result in a maximum of $695 to be spent on rental 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 Kalamazoo National avg. Difference
      Haircut $24.53$24.261.1%
      Beauty Salon $56.27$45.5623.5%
      Toothpaste $3.64$3.701.8%
      Shampoo $1.40$1.289.1%
      Movie $11.22$12.137.5%
      Bowling $22.17$18.0023.1%

      Groceries

      Item Kalamazoo National avg. Difference
      Ground Beef $5.51$5.845.7%
      Fried Chicken $1.69$1.577.7%
      Milk $4.84$4.673.6%
      Potatoes $4.77$4.933.3%
      Pizza $10.99$12.099.1%
      Beer $9.38$10.419.9%

      Health Care

      Item Kalamazoo National avg. Difference
      Optometrist $91.40$125.6827.3%
      Doctor $139.14$135.782.5%
      Dentist $120.35$113.296.2%
      Ibuprofen $10.88$10.652.1%
      Lipitor $504.80$468.607.7%

      Housing

      Item Kalamazoo National avg. Difference
      Home Price $113,700.00$184,700.0038.4%
      Avg. Mortgage Payment $2,520.64$2,346.697.4%
      Apartment Rent $825.00$949.0013.1%

      Transportation

      Item Kalamazoo National avg. Difference
      Gasoline $3.42$3.461.2%
      Tire Balancing $60.57$59.921.1%

      Utilities

      Item Kalamazoo National avg. Difference
      All Electricity $180.47$193.997.0%
      Phone $184.98$192.253.8%
      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.
      Galesburg, MI2,2017920.8%
      Gobles, MI7967920.5%
      Eastwood, MI5,6758316.6%
      Augusta, MI8428415.8%
      Lawton, MI1,5338515.5%
      Kalamazoo, MI76,1068613.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Baytown, TX76,089937.2%
      Hammond, IN76,141927.7%
      Wyoming, MI75,9999010.4%
      Bellflower, CA76,33914949.4%
      Iowa City, IA75,8491043.6%
      Kalamazoo, MI76,1068613.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.