Nearly 40% of Michiganders are struggling to afford basic needs, according to a new analysis from Poverty Solutions at the University of Michigan.
The finding is virtually unchanged from last year. This includes about 13% of residents whose income is below the federal poverty line and more than 26% of working Michiganders above the poverty line, but who still cannot afford the local cost of living.
The share of Michigan residents living in poverty has held steady over the past five years, although some counties have seen increased economic hardship in recent years.
The analysis comes from the updated Michigan Poverty and Well-Being Map, which Poverty Solutions has maintained since 2017. The map shows statewide, regional and county-level data on eight indicators related to poverty and economic well-being.
Key statewide poverty indicators include:
- About 13% of Michiganders live in poverty. For a three-person household, the poverty line in 2026 is $27,320 annual income.
- Nearly 18% of children under 18 live in poverty.
- More than 26% of Michigan households are Asset Limited, Income Constrained, Employed (ALICE), which means their income is above the poverty line and they still are struggling to afford basic needs based on their local cost of living.
- The median household income is $72,336.
- Nearly 33% of households are housing-cost burdened, which means they spend more than 30% of their income on housing expenses.
- About 7% of adults do not have health insurance.
"The latest data show over a million Michigan households above the poverty line still struggle to make ends meet and may not have the savings to weather an emergency home or car repair or medical expense," said Amanda Nothaft, director of data and analysis at Poverty Solutions, who updated the poverty map.
"State officials and local communities are working together in a variety of ways to address people's needs, and yet there's still a need to connect more Michiganders with well-paying jobs, affordable housing and health insurance to improve their financial security and well-being."
Efforts in recent years to improve economic well-being for Michiganders include increasing the state's match for the Earned Income Tax Credit from 6% to 30% of the federal credit, making community college essentially free, and expanding the Rx Kids cash "prescription" program to support moms and infants in more than 60 communities across the state.
Livingston County in Southeast Michigan has the strongest indicators of economic well-being, with the highest median income in the state ($101,995) and lowest rates of poverty, child poverty and share of ALICE households whose income is above the poverty line.
On the other end of the spectrum, Lake and Wayne counties face the most economic hardship. Lake County and Wayne County both saw 3% increases in their poverty rates since 2021. Lake County is in the West Michigan region, which has the highest regional median income in the state, yet it has the highest child poverty rate at 36%-twice the statewide rate.
Wayne County, where Detroit is located, has the second-highest child poverty rate in the state (33%), bumping Clare and Roscommon counties further down the ranking, after those areas have historically experienced high child poverty.
"Rural child poverty remains an issue across the state. We see pockets of concentrated poverty, even in regions with relative economic prosperity," Nothaft said. "Focusing additional resources in the areas with the greatest need will improve the quality of life for those local residents as well as the state's economic well-being overall.
Along with the updated Michigan Poverty & Well-Being Map, Poverty Solutions is releasing a set of factsheets that point out regional trends in Michigan's 10 Economic and Prosperity regions.
- Upper Peninsula: Expanding Workforce Opportunities and Filling Healthcare Gaps
- Northwest: Tourism Economic Brings Labor Market Volatility, High Housing Costs
- Northeast: Transportation Burden and Seasonal Volatility
- West: Invest in Addressing Housing and Transportation Costs in Lake County
- East Central: Low Incomes, Distance from Groceries Drives Food Insecurity
- East: Increase Access to Higher Education and Career Training
- Southwest: Financial Fragility and Healthcare Access
- South Central: Invest in Childcare to Bolster Lansing's Workforce
- Southeast: Transportation Costs and Educational Barriers in Rural Counties
- Metro Detroit: Housing Costs are a Barrier to Economic Well-Being
