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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