Thinking of moving to Chicago? With its iconic skyline, diverse neighborhoods, and vibrant cultural scene, the city truly offers something for everyone. In 2025, the average cost of living in Chicago is indexed at 71.7, which is 15% higher than the national average and 5% above the Illinois benchmark.
Consequently, residents find Chicago pricier than most regional peers. However, it still remains more affordable than major hubs like New York or San Francisco. Let’s explore what this means for your wallet, because understanding the details helps you plan your lifestyle.
TL;DR: Average Cost of Living in Chicago 2025
- Cost of living index: 71.7 (15% above US average, 5% above Illinois average)
- Required annual salary: $70,000 (single), $100,000 (family)
- Average rent for a 2-bedroom apartment: $2,220
- Median home price: $442,400
- Utilities cost: Around $215/month (mainly electricity)
- Monthly groceries: Approximately $410
- Public transit pass: $105/month
- Childcare monthly average: $1,450
What is the Average Cost of Living in Chicago in 2025?
You will need about $70,000 per year as a single adult to live comfortably in Chicago. Families, on the other hand, should budget at least $100,000. Because living here includes both essentials and some leisure, these numbers matter.
Consider these typical monthly expenses:
- Rent: $2,220 for a two-bedroom apartment
- Groceries: $410, which is slightly above the Illinois average
- Utilities: About $215 per month, mostly for energy
- Transportation: $105 for a CTA monthly pass
- Childcare: $1,450 for full-time care
Moreover, different neighborhoods highlight lifestyle diversity. For instance, Lincoln Park buzzes with city vibes. Meanwhile, Hyde Park boasts academic and historic charm. On the other hand, Wicker Park features a trendy arts scene.
Housing and Rental Market in Chicago
Because Chicago’s housing market can present challenges, the median home price is now $442,400. This sits just under Naperville but is higher than Aurora and Peoria. Rent for a two-bedroom averages $2,220. Although this is pricey, it still remains competitive regionally.
Let’s break down the housing numbers for clarity:
| City/Area | Avg. Rent (2BR) | Rent vs. Chicago | Median Home Price | Home Price vs. Chicago |
| Chicago | $2,220 | — | $442,400 | — |
| Naperville | $2,093 | 5% lower | $535,000 | 21% higher |
| Indianapolis | $2,093 | 6% lower | $405,152 | 10% lower |
| Minneapolis | $1,663 | 25% lower | $405,152 | 9% lower |
| Aurora | $1,450 | 34% lower | $441,538 | Comparable |
| Peoria | $1,285 | 42% lower | $427,624 | 3% lower |
Meanwhile, Chicago neighborhoods provide a wide range of living experiences:
- Lincoln Park: Upscale living with lakefront views and walkable streets.
- Logan Square: Attractive to a younger crowd with arts and food scenes.
- Beverly: Historic charm with a suburban feel within city limits.
Therefore, buyers and renters should explore these areas and balance price with lifestyle. For more listings and details, check out homes for sale in Chicago on Houzeo.
Utilities and Other Living Expenses in Chicago
Chicago’s average utility bill is about $215 per month, with electricity as the major factor. Thus, utility costs play a big role in monthly budgets. For comparison, peer cities offer the following numbers:
| City | Monthly Energy Cost | Monthly Grocery Cost | Public Transit Pass |
| Chicago | $215 | $410 | $105 |
| Aurora | $193 | $395 | $90 |
| Naperville | $197 | $425 | $85 |
| Peoria | $214 | $380 | $60 |
| Indianapolis | $180 | $375 | $70 |
| Minneapolis | $175 | $420 | $70 |
As you can see, Chicago’s utilities cost slightly more than those in most other cities except Peoria, where prices are nearly the same.
Grocery costs in Chicago, meanwhile, are higher than those in Aurora, Peoria, and Indianapolis. On the other hand, they are slightly less than in Naperville and Minneapolis.
Furthermore, Chicago’s public transit pass is the most expensive, costing up to 43% more than smaller cities like Peoria. Consequently, budgeting for essentials alongside housing is especially important in Chicago.
Income and Salary Expectations in Chicago
Because living costs are elevated, Chicago requires higher incomes for comfortable living. Importantly, strong job opportunities and urban amenities help balance these expenses.
| City | Single Salary Required | Family Salary Required |
| Chicago | $70,000 | $100,000 |
| Aurora | $65,000 | $90,000 |
| Naperville | $68,000 | $94,680 |
| Peoria | $60,000 | $83,000 |
| Indianapolis | $58,000 | $81,000 |
| Minneapolis | $63,000 | $88,000 |
Chicago’s Value Proposition
Notably, Chicago sits at the high end for cost of living in Illinois. Yet, it is still more affordable than the priciest U.S. metros. While housing costs top those of Indianapolis and Minneapolis, utilities and groceries remain relatively reasonable.
Additionally, Chicago’s rich culture, strong economy, and neighborhood diversity make it an attractive choice. By exploring beyond downtown and the Gold Coast, you might find more affordable options.
Neighborhood Insights for Budgeting Chicago Living Costs
- South Loop: Affordable new developments close to downtown.
- Pilsen: Artistic, vibrant, and more budget-friendly than the lakefront.
- Avondale: Suburban atmosphere meets urban convenience.
Moreover, every neighborhood offers different price points and lifestyles, so it’s easy to find one that fits your needs.
Cost-Saving Strategies for Living Comfortably in Chicago
Living in Chicago can be costly, but savvy residents find ways to enjoy the city without breaking the bank. Here are some expert tips to help stretch your dollars while embracing the best of the Windy City:
1. Choose Neighborhoods Wisely
For example, opt for up-and-coming areas like Pilsen, Avondale, or South Shore that offer lower rent but are rich in culture and amenities. These neighborhoods blend affordability with access to transit and local hotspots, allowing residents to live comfortably while saving money.
2. Leverage Public Transportation
Chicago’s CTA system is extensive and efficient. Instead of paying steep parking fees or owning a car, a monthly transit pass ($105) provides unlimited rides on buses and trains. Additionally, combining transit with biking or walking can cut commuting costs significantly.
3. Shop Smart for Groceries
Explore local markets and ethnic groceries, especially on streets like Devon Avenue or in neighborhoods like Chinatown. These spots often offer fresh produce and staples at better prices than typical grocery chains. Furthermore, bulk buying and meal planning also save money.
4. Utilize Utility Efficiency
Look for apartments or homes with energy-efficient appliances and good insulation to reduce utility bills. Since Chicago winters can drive heating costs up, investing in energy-efficient living spaces and being mindful of thermostat settings helps keep monthly costs down.
5. Childcare Alternatives and Support
Childcare costs are high; however, options like cooperative childcare groups, early enrollment discounts, or sharing care duties with trusted neighbors can help manage expenses. Also, research local programs and subsidies that may be available to families.
6. Take Advantage of Free and Low-Cost City Amenities
Chicago offers many free cultural and recreational activities, including museums on certain days, outdoor concerts, festivals, and extensive parks along the lakefront. By engaging in these options, residents can enhance the quality of life without increasing spending.
Overall, by applying these strategies, residents can enjoy Chicago’s rich offerings without overspending. In conclusion, balancing smart choices with the city’s unique opportunities creates a fulfilling and affordable urban lifestyle.
Relocation Tips for Managing Chicago Costs
First, look for affordable homes in suburbs or diverse city neighborhoods. Next, use public transit to save on commuting expenses. Also, prioritize energy-efficient options to keep monthly bills manageable. Above all, budget carefully for childcare, since it is one of the city’s highest costs.
Is Chicago Worth It?
Overall, Chicago’s cost of living leads Illinois cities, but sits below the most expensive U.S. metros. Because housing is the biggest expense, residents earning $70,000 to $100,000 can generally build a well-balanced city lifestyle.
Importantly, Chicago’s variety of neighborhoods and amenities lets you tailor your life to suit your budget.
FAQs
Is Chicago expensive compared to other Illinois cities?
Yes, Chicago tops Illinois peers in rent, home prices, and living costs.
What is the average rent for a two-bedroom apartment in Chicago?
The average rent for a two-bedroom apartment in Chicago is about $2,220 per month. This is higher than in most nearby cities such as Aurora or Peoria, but still slightly lower than Naperville.
How much income is needed to live comfortably?
Singles need about $70,000 per year to live comfortably in Chicago. Families need around $100,000.
How do Chicago home prices compare nationally?
Chicago’s home prices are lower than in major coastal cities like New York and San Francisco, but higher than in Midwestern markets such as Indianapolis and Peoria.
Are utilities expensive in Chicago?
Utilities are slightly below state and national averages, making them less of a burden than housing.
