C-
17%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
57%
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 Rochester Hills Michigan National
Cost of living11789100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing15774100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Rochester Hills, MI

Getting a feel for the cost of living in Rochester Hills is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Rochester Hills is 117, which is 17% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

Housing costs are a very significant part of the Rochester Hills cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 56.6% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Is Rochester Hills Affordable?

Wondering if Rochester Hills 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 Rochester Hills, for example, the median home price is 64.5% higher than what folks pay nationally, and monthly rent is 38.1% higher than the usual rates. Plus, income levels matter too, with Rochester Hills boasting a median household income of $99,666, which is 80.2% higher than the national average.

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

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Rochester Hills, the baseline sales tax rate begins at 6%, and income tax rates start at 4.25%.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Rochester Hills, the healthcare costs are 2.2% higher than the national average.

Where is the Data From?

The cost of living data in Rochester Hills 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 Rochester Hills is 32% higher than the Michigan average
  • The cost of living in Rochester Hills is 17% higher than the national average
  • Rochester Hills housing is 57% higher 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 Rochester Hills

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Compare Rochester Hills, MI Cost of Living

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      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$110,766$9,231$2,584$3,323
      Renters$61,542$5,129$1,436$1,846
      The affordability of the housing market in Rochester Hills, 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 Rochester Hills homeowners, the median income is $110,766. This indicates that a monthly maximum of $2,584 should be spent by homeowners on all housing related costs. Renters have a median income of $61,542. This indicates that renters would have a maximum of $1,436 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 Rochester Hills 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 Rochester Hills 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 Rochester Hills 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 Rochester Hills National avg. Difference
      Home Price $303,800.00$184,700.0064.5%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $1,311.00$949.0038.1%

      Transportation

      Item Rochester Hills National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Rochester Hills 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.
      Pontiac, MI59,7148613.5%
      Center Line, MI8,2128812.0%
      Hazel Park, MI16,4528910.7%
      Eastpointe, MI32,221909.8%
      Mount Clemens, MI16,212918.9%
      Rochester Hills, MI74,34011717.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Bolingbrook, IL74,31911010.4%
      Jacksonville, NC74,313973.3%
      Wood Buffalo, AB74,298n/a 
      Rancho Cordova, CA74,39412827.7%
      Rock Hill, SC74,410981.7%
      Rochester Hills, MI74,34011717.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.