D
14%
Overall NAT. AVG.
7%
Goods & Services NAT. AVG.
38%
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 Chicago Illinois National
Cost of living11496100
Goods & Services10797100
Groceries10498100
Health care10895100
Housing13895100
Transportation107103100
Utilities8989100

An Overview of Cost of Living in Chicago, IL

Are you thinking about relocating, but curious about the potential cost of living in Chicago? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Chicago stands at 114, making it 14% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

Housing costs make up a big chunk of the cost of living in Chicago, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 37.9% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

What Do Locals Say About the Cost of Living in Chicago?

Locals have the inside scoop on their city. So, we polled 93 residents in Chicago to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 48% find it reasonable with decreasing prices, but 52% think it's quite pricey, with prices that continue to rise.

Is Chicago Affordable?

Is Chicago affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Chicago, for instance, where the median home price falls 44.9% higher than the national average, and monthly rent rates are 21.6% higher than usual. Additionally, median income levels contribute to the equation, with Chicago flaunting a median household income of $62,097, 12.2% higher than the national norm.

What Factors can Influence the Cost of Living in Chicago?

Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In Chicago, healthcare costs are 7.7% higher than the national average.

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Chicago, the groceries index is 3.5% higher than the national average.

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Chicago, the utilities index stands at 10.8% lower than the national average.

Where is the Data From?

The Chicago cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Chicago is 18% higher than the Illinois average
  • The cost of living in Chicago is 14% higher than the national average
  • Chicago housing is 38% 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 Chicago

See all the best places to live around Chicago

Compare Chicago, IL Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      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$90,680$7,557$2,116$2,721
      Renters$43,591$3,633$1,017$1,308
      A good way to judge both the affordability of the housing and the cost of living in Chicago is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Chicago has a median income of about $90,680 for people who own homes. Based on that number, a maximum of $2,116 should be spent on expenses related to housing. Renters have a slightly different median income, which is $43,591. Based on this average, renters should spend no more than $1,017 on all rental costs if they want to maintain a non-impoverished standard of living.

      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 Chicago 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 Chicago 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 Chicago 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 Chicago National avg. Difference
      Home Price $267,600.00$184,700.0044.9%
      Avg. Mortgage Payment $2,578.06$2,346.699.9%
      Apartment Rent $1,154.00$949.0021.6%

      Transportation

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

      Utilities

      Item Chicago 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.
      Hodgkins, IL1,7538514.6%
      Hometown, IL4,216919.0%
      Calumet Park, IL8,383945.6%
      Merrionette Park, IL1,973964.4%
      Whiting, IN4,801973.1%
      Chicago, IL2,699,34711414.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Toronto, ON3,013,752n/a 
      Houston, TX2,313,2381010.8%
      Montréal, QC1,811,008n/a 
      Phoenix, AZ1,658,4221066.4%
      Philadelphia, PA1,581,5311022.4%
      Chicago, IL2,699,34711414.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.