Michigan ranks in the bottom half of states as measured by cost of living. The average of “Top Ten” states was nearly $6 lower for the same basket of goods, and only six peer states — Alabama, Ohio, Georgia, Indiana, North Carolina, and Tennessee — had a higher cost of living index.
What It Is: An estimation of the differences in the price levels of goods and services across states.
Why It Matters: A higher cost of living means businesses and households must pay more for an identical good or service. This can indicate a high desire to live in an area, but can also prevent businesses and households from purchasing necessary items.