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Cost of Living in Chicago, IL

Chicago, often regarded as one of the best cities to live in the Midwest, stands out as a vibrant, dynamic hub with a rich cultural and economic landscape. Chicago is the third largest city in the US and the only metro city without a coastal setting.

Known for its diverse neighborhoods, world-class dining, and iconic skyline along Lake Michigan, iconic sports teams like the Bulls and the Cubs, Chicago is a leader of the Midwest.

Being centrally located, with so many things to do in Chicago it’s a no-brainer everyone is considering moving here. Before you make any further steps towards this relocation you have to understand the cost of living from a local.

As a locally owned moving company here in Chicago we have seen all sorts of people move here. Seniors, freshmen, young professionals - they all come for different reasons.

Keep reading to find out more about the cost of living in Chicago from a local Chicagoan.

Chicago Is Cheaper Than Most Metro Cities

The first and foremost important thing to know about moving to Chicago is that the cost of living here is relatively cheaper compared to most metro cities like New York City, Los Angeles, San Francisco, Austin, and more!

According to statistics Chicago is about 20% cheaper than New York when it comes to all factors of cost of living combined. It follows a similar pattern with the other metro cities but New York is considered the baseline for all of the US.

With this in mind, you should be one step closer to considering a move to Chicago. Yes, the cost of living is notably higher—around 50% above the national average, according to the U.S. Census Bureau.

However, this isn't an apples-to-apples comparison. Chicago is home to nearly 3 million people and continues to grow, offering a level of infrastructure, opportunities, and amenities that smaller towns and cities simply can't match.

The national average encompasses a wide variety of locations, from rural communities to small towns, which don’t provide the same economic or cultural vibrancy. In Chicago, the higher cost of living is offset by the city's thriving job market, access to world-class public transportation, top-rated healthcare facilities, and a broad range of entertainment and dining options.

Housing Cost in Chicago

The most important aspect of every relocation is housing cost. The housing cost in Chicago depends heavily on where you choose to stay. The most expensive areas to live in Chicago are most commonly the ones closer to downtown. Prices tend to normalize as you go further away from downtown.

What are the most expensive neighborhoods in Chicago?

Take for example Streeterville, it tops the list with an average rent of $3,126, followed closely by Near East Side Chicago at $3,046 and River North at $3,031.

What are the cheapest neighborhoods in Chicago?

On the other hand, if you're looking for more affordable living options, Chicago has several neighborhoods that provide great value. The Island, for example, offers the lowest average rent at just $692 per month, followed by Austin at $848 and Cottage Grove Heights at $1,032. Other affordable neighborhoods include Fernwood, Longwood Manor, and Princeton Park, where rent averages around $1,032—well below the city’s overall average rent of $2,349.

What are the most popular neighborhoods in Chicago?

When it comes to popularity, Lakeview is one of the most sought-after neighborhoods, offering a vibrant community and a wide variety of rental options, with an average rent of $1,962. Ravenswood ($1,520) and Hyde Park ($1,734) are also popular choices.

Utility Cost in Chicago

When it comes to utilities in Chicago, costs can vary greatly based on the size of your home and your consumption habits. For instance, electricity often turns out to be the highest monthly utility expense, especially if you work from home, indulge in gaming, watch TV frequently, or run your HVAC system regularly. Other utilities, such as gas, water, and sewer, also contribute to your monthly expenses. According to RentCafe.com, the average utility cost in Illinois is approximately $335 per month, but this can fluctuate significantly depending on your usage patterns.

Here’s a sample breakdown of what your utility bills could look like:

  • Electricity: $130 per month
  • Gas: $149 per month
  • Water: $28 per month
  • Sewer: $28 per month

Transportation Costs in Chicago

Transportation costs are a significant part of living expenses in Chicago and can vary depending on your lifestyle. Generally the cost of transportation in Chicago can be split in 2 : people who commute everywhere with a car and people who use public transport. Here is the breakdown of what each will cost:

Chicago Public Transport(CTA) Monthly Pass:

  • Cost: $75 per month for unlimited rides on buses and trains.
  • This is a good option if you frequently use the Chicago Transit Authority (CTA), which includes buses and the 'L' train system.

For Suburban Commuters : Metra Monthly Pass

  • Cost: $100 to $400 per month, depending on the distance and zones traveled.
  • Metra is a commuter rail system that connects Chicago with its suburbs.

Costs Of Owning A Car in Chicago

  • Gas Cost as of 2024 : $3.6 per gallon for regular and $4.7 for premium
  • Car Payment : Depending on the type of car you are looking at an average of $400 a month in car payments
  • Parking: To avoid the freezing winters and having to clean your windshield every other hour, an underground garage can set you back $150 - $250 per month.
  • Parking Outside: You have to use the Chicago Parking app that costs anywhere between $0.5 - $8 depending on the area.
  • Insurance: Insurance in Chicago averages around $100-$150 per month depending on your driver profile.

RideShare Apps: Uber, Lyft

Can range from $100-$400 per month, depending on how often you use these services. As a Chicagoan we recommend not using these services during rush hour.

We highly recommend using the L system as it gets you almost everywhere at a very reasonable price without having the hustle of paying for parking, gas and being stuck in traffic for hours.

Is Chicago A Walkable City?

Chicago is ranked as the #1 most walkable city in the U.S., with its downtown and surrounding neighborhoods offering excellent pedestrian accessibility.

Fun fact: During the 2008 financial crisis, Chicago sold the rights to its 36,000 parking meters to a U.A.E.-based company for a quick cash infusion of $1.2 billion. The kicker? It was a 75-year lease, and those meters now generate about $200 million in revenue annually!

Cost Of Groceries in Chicago

In Chicago, the cost of groceries typically ranges from $300 to $400 per person monthly. Here's a breakdown of some common grocery items and their prices in Chicago compared to the national average:

  • Dozen Eggs: $3.00 (National Average: $2.50)
  • Gallon of Milk: $2.50 (National Average: $3.50)
  • Loaf of Bread: $2.50 (National Average: $2.50)

While some items like milk may be slightly more expensive in Chicago, overall, grocery prices in the city can be comparable to or even lower than the national average. However, the true cost of living is often driven up by the city's vibrant dining scene, where eating out can significantly add to monthly expenses.

Healthcare Cost in Chicago, IL

In Illinois, the average cost of health insurance varies based on family size. Here’s a breakdown of the average monthly costs:

  • Individual: $633
  • Individual plus child: $1,012
  • Couple (age 40): $1,266
  • Family of three: $1,645
  • Family of four: $2,024

However, it's important to note that many individuals may qualify for discounts based on their income, which can significantly reduce their average monthly cost to about $141.

Entertainment Costs in Chicago

Like we mentioned above, Chicago is one of a kind city with one of the best food sceneries in all of the US. With so many great things to do and see here, you should consider entertainment as a real cost of living here. Here is some of the most interesting things to do and how much they cost:

  • Museum of Science and Industry: Admission is about $24 for adults, offering interactive exhibits and a fascinating glimpse into innovation.
  • Art Institute of Chicago: Enjoy world-class art for around $25 for adults, featuring renowned works from Impressionists to modern artists.
  • Chicago Architectural Boat Tour: Experience the city's stunning skyline from the water for about $45 per person, providing unique insights into the city's history and architecture.
  • Wrigley Field Tour: A tour of this iconic baseball stadium costs around $30, making it a must-visit for sports fans.
  • Deep-Dish Pizza: Indulge in Chicago's famous deep-dish pizza at places like Lou Malnati's or Giordano's, with a typical price of about $25 for a large pizza that serves multiple people.
  • The Second City Comedy Club: Enjoy a night of laughs with tickets ranging from $20 to $40, showcasing some of the best improv and sketch comedy in the city.

For a more detailed guide, read our Things To Do In Chicago Guide.

Taxes in Chicago

When budgeting for your cost of living in Chicago, it's important to consider the city's tax structure. Chicago residents face a range of taxes that can impact overall expenses:

  • Sales Tax: The total sales tax rate in Chicago is 10.25%, one of the highest in the country, which applies to most goods and services.
  • Property Tax: Property taxes in Chicago average around 2.3% of the property's assessed value, which can vary by neighborhood and type of property.
  • Income Tax: Illinois has a flat state income tax rate of 4.95%, applied to your taxable income, regardless of earnings.
  • Vehicle Registration: If you own a car, vehicle registration fees can add up, with costs typically around $151.

To Wrap Up

As you explore the many facets of living in Chicago—from its vibrant food scene to diverse entertainment options and tax considerations—it's easy to fall in love with this dynamic city. If you find yourself ready to make the move, be sure to choose a professional moving company like Collins Family Movers. With our expertise and commitment to affordable prices, we can help ensure your relocation to the Windy City is smooth and stress-free.

Topics: Chicago , Cost of Living ,
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