Cost of Living: Detroit, MI vs Newark, NJ (2026)

Detroit

Michigan
53
VS

Newark

New Jersey
100

Detroit is 47% cheaper than Newark.

$1,034/mo ↓ 22%
Median Rent
$1,330/mo ↑ 29%
$39,575/yr ↓ 18%
Median Income
$48,416/yr ↑ 22%
$76,800 ↓ 77%
Home Value
$337,800 ↑ 340%
$868/mo ↓ 39%
Owner Costs
$1,419/mo ↑ 63%
636,644
Population
307,188

Tax Comparison

4.25%
Income Tax
10.75%
6.0%
State Sales Tax
6.625%
1.38%
Property Tax
2.23%

Affordability

31.4%
rent-to-income
Affordability
33.0%
rent-to-income

Detailed Comparison

When comparing Detroit, MI and Newark, NJ, the overall cost of living indices are 53 and 100 respectively (national median = 100). Rent is $296/month cheaper in Detroit, saving renters about $3,552/year.

Median household income is $8,841/year higher in Newark. Home values also differ significantly — the median in Detroit is $76,800 compared to $337,800 in Newark.

Michigan has a lower income tax rate, making Detroit slightly more tax-friendly.

Frequently Asked Questions

Detroit vs Newark — common questions

Is Detroit or Newark cheaper to live in?
Based on our cost index, Detroit is cheaper to live in with an index of 53 compared to 100 (US average = 100).
What is the rent difference between Detroit and Newark?
Median rent in Detroit is $1,034/month and in Newark it's $1,330/month — a difference of $296/month.
Which city has higher income, Detroit or Newark?
Median household income is $39,575 in Detroit and $48,416 in Newark. Median household income is $8,841/year higher in Newark.
How do taxes compare between Michigan and New Jersey?
Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax. New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax.
Should I move to Detroit or Newark?
It depends on your priorities. Detroit has a cost index of 53 with median rent of $1,034/mo, while Newark has a cost index of 100 with rent of $1,330/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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