When looking for a retirement destination, you need to take the cost of living into consideration. Fortunately, Detroit is one of the most affordable places to live in the United States. Even the expenses important to golden agers are quite affordable. According to the latest numbers from Forbes, the cost of living in Detroit is almost fourteen percent lower than the US average. But, how does the Motor City stack up to the rest of the country when it comes to big budgetary items?
Both housing costs and rent have rebounded in recent years in Detroit. This is likely due to the massive job losses and population decline of the past decades coming to an end. The median home price in Detroit is $73,000 and rising according to Forbes. And, as of July 2016, rent for a one-bedroom apartment in the city costs an average of $839 per month. Two-bedroom apartments go for $1,100.
According to the Bureau of Labor Statistics, Detroiters spend less, but not significantly less, for food than the rest of the country. The average Detroit household spends 12.4 percent of their budget on food. Residents also tend to go out to eat less than the national average. Prices for common grocery items are $2.46 for a gallon of regular milk, $2.21 for a dozen eggs, and $4.15 for a pound of boneless, skinless chicken breasts.
In Detroit, the percentage of household expenditures that goes to transportation is significantly higher than the national average. 19.2 percent of spending is for transportation in Detroit versus 17.3 percent nationally. Of course, you will spend much less on transportation if you do not have a daily commute. Gas prices range between $1.50 and $2.69 per gallon in Detroit as of July 2016. Detroit has the highest auto insurance rates in the US by far. Drivers spend an average of $10,723 per year on insurance. This rate varies depending on what neighborhood you live in.
Senior care is more expensive in Detroit but not by much. Home health care and adult day health care are both about $1,000 more per year than the national averages at $47,000 and $18,720 per year respectively in Detroit. A private room in an assisted living facility will run you about $46,200 in Detroit versus $43,539 in the rest of the country. And, for a private room and semi-private room in a nursing home, you can expect to pay $94,900 and $89,790 respectively in the Motor City as compared to $92,378 and $82,125 nationally.
It is a smart idea to comparison shop for housing based on pricing, affordable transportation options, and walkability to make certain you get the most out of your fixed income. The prices vary widely throughout Detroit and its surrounding areas.
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