As one of the major metropolitan areas in the country, Chicago’s cost of living may be higher than you expect, but with so much to offer, the Windy City is an excellent choice for anyone looking for a new city to call home.
With 2.7 million residents, Chicago is the third-most populous city in the United States after New York City and Los Angeles. The city sits on the shore of Lake Michigan and serves as an international hub for a range of industries, including technology, transportation, finance, culture, education, telecommunications, and commerce.
When you’re ready to make the move, here’s what you need to know about the cost of living in Chicago.
- Housing
- Transportation Costs
- Utilities
- Food Costs
- Taxes
- Other Expenses
- Income and Job Market
- Entertainment
Chicago housing costs
If you live within the city of Chicago, you’ll likely pay more for rent than if you lived outside the city but still within the Chicago-Naperville-Elgin metro.
The rent for a one-bedroom apartment in Chicago will cost, on average, around $1,500 per month, as of November 2021. The median monthly rent for a two-bedroom clocks in at around $1,725. If you are comfortable with a studio apartment, you can find homes for rent around $1,025 monthly.
Specific neighborhoods are also more expensive than others in Chicago. One of the most expensive places to live in the city is Lincoln Park, where you could expect to spend $1,700 per month to lease a one-bedroom apartment. The east end of this neighborhood offers access to Lake Michigan and its beaches. Other pricey places to live that can increase your cost of living in Chicago, include Lakeview, the Magnificent Mile, and the Gold Coast.
If you want to lower your cost of living, one option is Edgewater, a neighborhood that offers lakefront views and access to the Loop. Rogers Park is close to Loyola University and offers a diverse living atmosphere as well. Ravenswood is another attractive place to call home, situated within the Lincoln Square neighborhood on the north side of Chicago.
Chicago transportation costs
Chicago is a sprawling urban setting, and if you want to get places, you need to rely on motorized transportation most of the time. Gasoline tends to be at the higher end of the national average but still within the range found across the U.S. Car insurance is higher in Chicago than in any other part of Illinois. With higher gas and insurance, you’ll want to consider the expense of owning a vehicle in Chicago to decide if it’s worth it.
Chicago has a combination of subway and bus services known as the Chicago Transit Authority to get you where you need to go. A one-way ticket is $2.50, or you can purchase a monthly bus pass for $105. Chicago also offers taxis and ride-sharing at prices within the norm.
Utilities
Utilities include cooling, heating, water, electricity, and garbage. In many cases, renters in Chicago are responsible for gas and electric; heat and hot water may be included in rent. You will also be responsible for your internet or phone bills. According to numbeo, for a 900-square-foot apartment you can expect to pay approximately $156, slightly below the national average, and internet will be an additional $60 a month.
Food costs
Chicago offers prices well within the norm for groceries. You can get a gallon of milk for $3 and a loaf of bread for $2.50. If you’re in the business district, you will find lunch with a beverage runs you around $15, while a fast food combo meal can be found for $8. Have a friend join you for a basic dinner at your friendly neighborhood pub, and you can expect the bill to be around $48. If you opt to take that special someone out to an Italian restaurant, such as The Village, for appetizers, wine, main course, and dessert, it will be about $99.
Taxes in Chicago
Taxes for Chicago are some of the highest in the country. State sales tax for Illinois is 6.25%, but Chicago adds 4% for city and county taxes, bringing sales tax to 10.25%. Residents of Illinois pay a flat income tax of 4.95%, meaning that no matter how much income you generate, your tax rate will remain at 4.95%. Illinois also has the second-highest property tax rate in the U.S. at 2.16%, making renting more attractive to Chicago residents.
Other expenses to consider in Chicago
If you have kids, you’ll want to consider childcare costs. Additionally, winters in Chicago can get brutally cold, so if you’re moving from a warmer state, you’ll want to factor in the cost of winter jackets and warm clothing into your move.
Chicago’s average income and job market
The average household income in Chicago is $73,753, and a living wage in Chicago is $16.08 per hour for an individual employed full-time.
Chicago has job opportunities in financial trading and services, advertising and sales, food processing, insurance, health services, and transportation. Some of the major companies headquartered or with a large presence in Chicago include:
- Boeing
- McDonald’s
- Discover Financial Services
- Kraft Heinz
- McKinsey & Company
- Mondelez International
- Walgreens Boots Alliance
- Hyatt Hotels
Entertainment costs
Chicago has a wide variety of entertainment options, from the theater to sporting events. A few top activities include (prices listed below are as of November 2021):
- Chicago architecture river cruises, which can cost around $40 per adult ticket*
- The Art Institute of Chicago, which charges $14-$25 for entry, depending on state residence and age
- Museum of Science and Industry: Tickets are $21.95 for adults and $12.95 for children
- Chicago Observation Deck, where you can expect to pay $30 for admission
- Wrigley Field, where you can catch a Cubs game. Prices vary depending on availability and location in the stadium.
- Chicago Riverwalk (free)
- Millennium Park (free)
Chicago can be more affordable than other major cities in the United States, and its central location in the country allows for easy domestic travel. Now that you know about the Chicago cost of living, start your search on Zumper for the perfect place to call home.
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