F
18%
Overall NAT. AVG.
7%
Goods & Services NAT. AVG.
50%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Prospect Heights Illinois National
Cost of living11896100
Goods & Services10797100
Groceries10498100
Health care10895100
Housing15095100
Transportation107103100
Utilities8989100

An Overview of Cost of Living in Prospect Heights, IL

Knowing the cost of living in Prospect Heights allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Prospect Heights stands at 118, marking it 18% higher than the national average.

Housing costs are a major factor in the Prospect Heights cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 50.5% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Prospect Heights Affordable?

Is Prospect Heights affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Prospect Heights, the median home price is 63% higher than the national average and monthly rent prices are 21.2% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Prospect Heights boasting a median household income of $72,500, 31.1% higher than the national average.

What Factors can Influence the Cost of Living in Prospect Heights?

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Prospect Heights, the transportation index is 7.2% higher than the national average.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Prospect Heights, the general sales tax rate starts at 6.25%, and income tax rates begin at 4.95%.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Where is the Data From?

The cost of living in Prospect Heights, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Prospect Heights is 22% higher than the Illinois average
  • The cost of living in Prospect Heights is 18% higher than the national average
  • Prospect Heights housing is 50% higher than the national average
  • Illinois general sales tax is 22% higher than the national average
  • Illinois state income tax is 119% higher than the national average

Most Affordable Places to Live in and Around Prospect Heights

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Compare Prospect Heights, IL Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$81,478$6,790$1,901$2,445
      Renters$49,836$4,153$1,163$1,495
      To approximate the cost of living and the housing affordability in Prospect Heights, IL, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Prospect Heights have a median income of $81,478. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,901 per month to avoid calamity and poverty. The renters in the city have an income of about $49,836, which would make their monthly maximum allowable rental costs $1,163.

      Illinois Sales Tax

      State General Sales Tax With Max Surtax
      Illinois 6.25% 10.25%

      Illinois Income Tax

      State Income Tax (Low) Income Tax (High)
      Illinois 4.95% 4.95%

      Goods & Services

      Item Prospect Heights National avg. Difference
      Haircut $33.69$24.2638.9%
      Beauty Salon $53.44$45.5617.3%
      Toothpaste $3.75$3.701.4%
      Shampoo $1.27$1.281.1%
      Movie $17.91$12.1347.6%
      Bowling $24.58$18.0036.6%

      Groceries

      Item Prospect Heights National avg. Difference
      Ground Beef $5.28$5.849.5%
      Fried Chicken $1.42$1.579.7%
      Milk $4.87$4.674.3%
      Potatoes $4.90$4.930.7%
      Pizza $13.41$12.0910.9%
      Beer $10.00$10.414.0%

      Health Care

      Item Prospect Heights National avg. Difference
      Optometrist $118.27$125.685.9%
      Doctor $167.67$135.7823.5%
      Dentist $128.22$113.2913.2%
      Ibuprofen $10.97$10.652.9%
      Lipitor $382.34$468.6018.4%

      Housing

      Item Prospect Heights National avg. Difference
      Home Price $301,100.00$184,700.0063.0%
      Avg. Mortgage Payment $2,578.06$2,346.699.9%
      Apartment Rent $1,150.00$949.0021.2%

      Transportation

      Item Prospect Heights National avg. Difference
      Gasoline $3.56$3.462.7%
      Tire Balancing $70.87$59.9218.3%

      Utilities

      Item Prospect Heights National avg. Difference
      All Electricity $148.58$193.9923.4%
      Phone $210.03$192.259.3%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      North Chicago, IL29,967973.2%
      Stone Park, IL4,8421022.2%
      Berkeley, IL5,0791022.4%
      Northlake, IL12,2351033.5%
      Melrose Park, IL25,4041065.5%
      Prospect Heights, IL15,98611817.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Summerside, PE15,987n/a 
      Floral Park, NY15,97917070.1%
      Rossville, MD15,99311211.7%
      White Center, WA15,99514444.1%
      Cherryland, CA15,97615858.3%
      Prospect Heights, IL15,98611817.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.