B+
8%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
25%
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 Royal Oak Michigan National
Cost of living10889100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing12574100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Royal Oak, MI

Understanding the cost of living in Royal Oak 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 Royal Oak cost of living index is 108, which is 8% 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.

Everyday expenditures like food, housing, goods and services, transportation and health care in Royal Oak are priced in a manner consistent with other areas. This means that residents of Royal Oak can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

Housing costs are a major factor in the Royal Oak 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 25.4% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Royal Oak?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 10 locals to understand their opinions on the cost of living in Royal Oak. The results indicated that 60% found it reasonably priced with decreasing prices of goods and services, while 40% viewed it as quite expensive, with increasing prices.

Is Royal Oak Affordable?

Is Royal Oak 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 Royal Oak, the median home price is 28.1% higher than the national average and monthly rent prices are 19% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Royal Oak boasting a median household income of $83,194, 50.4% higher than the national average.

What Factors can Influence the Cost of Living in Royal Oak?

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 Royal Oak, the transportation index is 0.5% lower than the national average.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

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 Royal Oak, the utilities index registers 5.6% lower than the national average.

Where is the Data From?

The cost of living in Royal Oak, 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 Royal Oak is 21% higher than the Michigan average
  • The cost of living in Royal Oak is 8% higher than the national average
  • Royal Oak housing is 25% 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 Royal Oak

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Compare Royal Oak, 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$98,121$8,177$2,289$2,944
      Renters$64,248$5,354$1,499$1,928
      A good indicator of the general affordability of housing in Royal Oak, MI, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Royal Oak, the median monthly income is $98,121 for those who own their own homes. Under the standard rule, that income level would allow for $2,289 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $64,248, per the median income in the area. That would allow for renters to spend up to $1,499 on monthly rental expenses.

      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 Royal Oak 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 Royal Oak 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 Royal Oak 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 Royal Oak National avg. Difference
      Home Price $236,600.00$184,700.0028.1%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $1,129.00$949.0019.0%

      Transportation

      Item Royal Oak National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Royal Oak 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.
      Highland Park, MI10,8188218.3%
      Detroit, MI672,3518415.5%
      Inkster, MI24,3988515.1%
      Hamtramck, MI21,7048614.3%
      Pontiac, MI59,7148613.5%
      Royal Oak, MI59,2561088.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Bartlett, TN59,2521010.6%
      Brookline, MA59,223220119.7%
      Lancaster, PA59,321964.2%
      St. Clair Shores, MI59,184964.2%
      San Rafael, CA59,178217117.4%
      Royal Oak, MI59,2561088.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.