What counts as one university town? Depends on who you ask.
For some, the presence of one large public university is non-negotiable. For others, having a large enough non-student population is an immediate disqualification. Some cities may not have as strong a connection to their central university as others, and some may have broader historical reasons for attracting residents.
Definitions vary, but almost all of them come close to describing Ann Arbor, Michigan, as what it means to be a textbook college town.
In a recent WalletHub survey, Ann Arbor ranked second college town in the USbehind Austin.
The Midwestern city has a population of about 122,000, while the University of Michigan enrolled 53,488 students at its Ann Arbor campus in the fall of 2025 — equivalent to about 44% of the city’s population.
The University of Michigan is an economic engine – and a big part of the city’s identity
Ann Arbor is Michigan’s fifth largest city and much of the local economy revolves around the university. Nicholas Klein/Getty Images
The University of Michigan does Washtenaw County’s largest employerwith approximately 37,400 employees spread across the university and healthcare system.
In fiscal year 2025, it purchased more than $296 million worth of goods and services provincial companiesand university property now accounts for about 10% of Ann Arbor’s land.
The university also gives the relatively small city a research and startup ecosystem more similar to that of the larger ones economic centers.
By 2025, the University reported expenses $2.16 billion in research across the three campuses. In fiscal year 2026, the university launched a record 40 startups university-backed startups raised a record $796 million in venture capital.
But while there are plenty of options for students and recent graduates, Ann Arbor isn’t cheap everywhere.
The average rent surpassed $2,000 at the end of August, according to Zillowwhile 2024 federal data showed that metro area rents were about 25% higher than the national price level.
College football and local culture unite the city’s community
Football is central to Ann Arbor’s college culture. CRobertson/Getty Images
Few things illustrate the university’s impact on Ann Arbor better than football.
Michigan Stadium on the university campus seats 107,601 people – almost as many as the entire city population. Ask any Michigan fan about their gameday memories and you’ll immediately see why.
Music venues and art fairs also contribute to a vibrant culture for residents and students alike.
The sense of community created by a shared identity – whether it’s fellow school alumni or passionate sports fans – is one of the factors why recent diplomas and young adults are choosing to stay indoors student cities even after graduation.
A research paper A 2023 survey found that about half of recent college graduates live and work in the metropolitan area closest to their college, while 67% stay in the same state.
Even for those who move after graduation, Ann Arbor remains a strong magnet for alumni and fan visits.
The eight home games during the Football season 2024 generated a total of $226.7 million in direct spending from visitors outside of Washtenaw County.
Whether it’s economic opportunity, sports, research, culture or community, life in Ann Arbor offers a concentrated version of many of the attractions of a much larger city – wrapped in the charming communal identity of a college town.
