It’s Not Just You: Household Expenses Rise 5 Percent in Grand Rapids

Since 2022 started, I can't be the only person who has felt like everything has gotten more expensive. From gas prices reaching record highs over the summer, to the cost of rent and mortgages raising, and even simple grocery bills growing. It feels like we're fighting to make our dollars stretch as far as they used to in recent years.

A new report from Doxo shows that while Detroit is the least expensive major city to live in, the cost to live in Grand Rapids is going up. In fact, the average Grand Rapids household is currently paying $1,674 a month combined for the 10 most common household bills. And if that seems like a lot, it's up 5.3% from this point last year.

But that doesn't mean you should run from Grand Rapids screaming because it's becoming "unaffordable"...

There is a bright side to the cost of living going up

I know that sounds insane... but it turns out, it's still cheaper on average to live in Grand Rapids (and Michigan as a whole) than most states. According to the same information provided in the Doxo report, household expenses in Grand Rapids, on average, are 16.4% lower than the national average, which is  $2,003.

As a bonus, Household expenses in Grand Rapids are also 4.6% lower than the Michigan state average of $1,754, making Grand Rapids the #106th most expensive city in the state. (Aka, it's pretty affordable to live here.) And people in Grand Rapids currently spend about 36% of their household budget on living expenses, meaning we have some money left to enjoy that Pure Michigan.

Have wages gone up to match the price of living increase?

According to the Bureau of Labor and Statistics, "Workers in the Grand Rapids-Wyoming, MI Metropolitan Statistical Area had an average... hourly wage of $25.32 in May 2021" which is approximately $52,665 yearly for anyone working a minimum 40 hour week, or is salaried.  Meanwhile, the 2020 census showed the average income was $51,333. That's only a 1% increase in wages during the same period of time.

While that's not a guarantee that you'll have a pull on your finances, you may see your dollars not going nearly as far.