Cost of Living in Chicago, Illinois: A Guide

Cost of Living in Chicago, Illinois

Chicago, Illinois, is known for its stunning skyline, deep-dish pizza, and rich cultural scene. As one of the largest cities in the U.S., it offers a blend of urban living, diverse neighborhoods, and career opportunities. However, the cost of living in Chicago can vary greatly depending on your lifestyle and where you choose to live.

In this guide, we’ll break down the cost of living in Chicago, covering housing, utilities, transportation, groceries, and more. We’ll also explore how you can invest your savings in real estate through mogul, where you can earn monthly dividends and benefit from property appreciation.

Additional reading: The Importance of Vacancy Rates in Real Estate Investing

Housing Costs in Chicago

Housing in Chicago can range from affordable apartments in certain neighborhoods to luxury high-rises downtown. The city has a broad mix of housing options that cater to various budgets.

  • Rent: The average rent for a one-bedroom apartment in Chicago is about $1,900 per month, while a two-bedroom apartment averages $2,600. More affordable options can be found in neighborhoods like Pilsen and Logan Square, whereas areas like Lincoln Park and River North command higher rents.
  • Home Prices: The median home price in Chicago is around $350,000. Prices are higher in sought-after neighborhoods like the Gold Coast and Wicker Park, while more affordable homes can be found on the city's South Side.
  • Property Taxes: Property tax rates in Chicago are relatively high, with an average rate of about 2.16% of a home's assessed value.

Utility Costs

Chicago's weather can range from freezing winters to hot summers, which can impact utility costs throughout the year.

  • Electricity: The average electricity bill in Chicago is around $100-$120 per month, with higher bills in the summer due to air conditioning use.
  • Gas: For heating during the cold winter months, gas bills can spike to around $80-$150 per month.
  • Water: Water bills in Chicago typically cost around $30-$50 per month for apartments and homes.
  • Internet: High-speed internet in Chicago generally costs between $50-$80 per month, depending on your provider and package.

Transportation Costs

Chicago is known for having one of the most extensive public transportation systems in the U.S., making it easy to get around without a car. However, if you do drive, parking and gas can add to your expenses.

  • Public Transit: The Chicago Transit Authority (CTA) operates buses and trains throughout the city, with a monthly pass costing about $75. The CTA is a convenient and affordable way to navigate Chicago without the hassle of parking.
  • Gas: Gas prices in Chicago hover around $4.00 per gallon, slightly higher than the national average.
  • Parking: Parking in Chicago can be expensive, especially downtown, with monthly parking fees ranging from $150-$300. Street parking in residential areas often requires a permit.

For those who live and work downtown, public transit is the most cost-effective option, while suburban commuters may face higher transportation costs if they drive to work.

Grocery Costs

Grocery prices in Chicago are in line with the national average, though higher-end stores and specialty markets can increase your costs. Here's a general overview of common grocery expenses:

  • Milk: A gallon of milk costs about $3.50.
  • Eggs: A dozen eggs typically costs around $3.75.
  • Bread: A loaf of bread is priced at about $2.75.
  • Chicken: A pound of boneless chicken breasts costs approximately $4.50.
  • Fruits and Vegetables: A pound of apples costs around $2.40, and potatoes are about $1.60 per pound.

Shopping at chain stores like Jewel-Osco or discount grocers like Aldi can help keep your grocery bill manageable.

Healthcare Costs

Healthcare costs in Chicago are comparable to those in other major U.S. cities. Medical expenses, insurance premiums, and prescription drug costs can vary depending on your provider and coverage.

  • Doctor's Visit: A typical doctor's visit in Chicago costs between $120-$150 without insurance.
  • Health Insurance: The average health insurance premium in Illinois is about $490 per month for an individual.
  • Prescription Drugs: Prescription medication prices can range from $15-$40, depending on the drug and your insurance coverage.

Entertainment and Lifestyle

Chicago is home to world-class dining, museums, theaters, and sports teams, offering plenty of ways to enjoy yourself. However, entertainment and lifestyle costs can add up quickly depending on your choices.

  • Dining Out: A meal at a mid-range restaurant typically costs around $20-$30 per person, while fast-food meals are about $8-$12.
  • Fitness Memberships: Gym memberships in Chicago generally range from $40-$70 per month.
  • Movie Tickets: A ticket to the movies costs around $13-$15, depending on the theater.
  • Sports and Events: Chicago is home to several professional sports teams, with ticket prices for events like Chicago Cubs games ranging from $50-$150, depending on the game and seat location.

With so many entertainment options, it’s easy to enjoy Chicago’s culture without overspending by taking advantage of free or low-cost events.

Taxes

Illinois has one of the highest state income tax rates in the U.S., along with property and sales taxes that can add to your overall cost of living.

  • State Income Tax: Illinois has a flat state income tax rate of 4.95%, applied to all income levels.
  • Sales Tax: The sales tax rate in Chicago is 10.25%, making it one of the highest in the country.
  • Property Tax: Chicago’s property tax rate averages around 2.16%, making it one of the higher property tax rates compared to national averages.

How to Make the Most of Your Money in Chicago

Living in Chicago offers many benefits, but the cost of living can add up quickly. By managing housing, transportation, and entertainment expenses, you can free up money for savings and investments.

One smart way to put your savings to work is by investing in real estate through mogul, where you can earn monthly dividends and benefit from property appreciation.

Invest with mogul and Grow Your Wealth

Here’s why mogul is an excellent option for putting your savings to work:

  • Low minimum investment: Start investing in real estate with just $250, making it accessible for investors at any level.
  • Monthly dividends: Enjoy consistent income from rental properties, helping you grow your savings over time.
  • Property appreciation: As real estate values rise, your investment grows, providing long-term financial benefits.
  • Hassle-free investing: All properties are professionally managed by mogul, so you don’t have to worry about the day-to-day maintenance or tenant issues.

By investing through mogul, you can turn your savings into a profitable investment that helps build long-term wealth.

The Bottom Line

The cost of living in Chicago can be manageable with the right budgeting strategies. By keeping an eye on housing, transportation, and entertainment expenses, you can make the most of your income and enjoy the benefits of living in a vibrant city like Chicago.

Once you’ve saved on living costs, consider investing those savings through mogul to take advantage of monthly dividends and property appreciation from real estate investments. With a low minimum investment of $250, mogul makes real estate investing accessible and hassle-free.

Ready to make your money work for you? Join mogul today and start investing in real estate for long-term financial success.


Learn more: What is a Ground Lease in Real Estate

Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.