Ann Arbor is the seventh largest city in the U.S. state of Michigan, with a population of 114,024 as of the 2000 census, of which 36,892 (32%) are college or graduate students.
The city's economy is currently dominated by education, high tech, and biotechnology. Average home prices and property taxes are well above the state and national medians. The city is also known for its political liberalism and its large number of restaurants and performance venues.
Ann Arbor was founded in January 1824 by John Allen and Elisha Rumsey, both of whom were land speculators. There are various accounts concerning the origin of the settlement's name; one states that Allen and Rumsey decided to name it "Annarbour" for their spouses, both named Ann, and for the stands of burr oak in the 640 acres (260 ha) of land they had purchased for $800 from the federal government. The regional Native Americans named the settlement Kaw-goosh-kaw-nick, after the sound of Allen's saw mill.
The Ann Arbor Land Company, a group of speculators, set aside 40 acres (16 ha) of undeveloped land and offered it to the State of Michigan as the site of the state capital, but lost the bid to Lansing. In 1837, the property was accepted instead as the site of the University of Michigan, forever linking Ann Arbor and its history with the university.