When choosing a place to live, there are many things you must consider. Your employer, your shopping preferences, and even schools are all important to think about. Yet cost of living is also important to know and plan for. I’m Nicole, your ApartmentHomeLiving.com Local Expert for Chicago, and I believe most people can afford to live in Chicago. In this guide, I’ll show what it costs to live here and how to get the most value for your money.
After living in the Chicago area for a while, I’ve found many perks to this region. However, cost of living is not really one of them. On average, it costs about 18% more to live in Chicago than national averages, per the MIT Cost of Living Calculator. Thankfully, there are ways to control your costs and make life here a bit more manageable if you find that number intimidating. Let’s take a closer look at the cost of living in Chicago and tips to help you save.
Housing Costs
According to MIT, as of 2026 the current cost of housing for one adult living alone in Chicago is $17,251 a year on average. This average increases based on family size, and factors like neighborhood and the amenities of the building or community can impact that cost. In contrast, the cost for one adult living in Madison, WI, is $14,397 a year, and in New York City, the cost is much higher at $26,341 a year. Payscale indicates the average cost for housing in Chicago is 44% above the national average.
When looking at apartments specifically, the average cost within the city breaks down like this:
| Bedroom | Average Rent | Cheapest Rent | Highest Rent |
|---|---|---|---|
| Studio Apartments | $2,043 | $595 | $5,915 |
| 1 Bedroom Apartments | $2,465 | $640 | $9,987 |
| 2 Bedroom Apartments | $3,062 | $762 | $10,000+ |
| 3 Bedroom Apartments | $3,680 | $883 | $10,000+ |
| 4 Bedroom Apartments | $3,864 | $720 | $10,000+ |
| 5 Bedroom Apartments | $5,841 | $2,695 | $10,000+ |
| 6 Bedroom Apartments | $16,870 | $7,000 | $10,000+ |
However, there is a huge range in prices, with some of the cheapest studios ranging close to $600 and a luxury apartment often priced at over $10,000 a month.
As you’re looking for a place to live, you’ll find that housing costs vary a lot from one part of the city and suburbs to another. Since geography within Chicago is such a factor in rent prices, let’s take a look at some of the most affordable neighborhoods in Chicago and the less affordable options.
Within the city, the Far North, Far South, and West Side neighborhoods, such as Uptown, Rogers, Hyde Park, or Austin, have some of the cheapest rent, with options available around $1,500 and $1,700 a month. If you want to live in the heart of the city, along the lakefront, or in one of the trendier neighborhoods, like Streeterville, Fulton Market, or River North, you will pay over $3,000 a month for a one-bedroom apartment.
As far as suburbs go, the further you get from the city, the more affordable the cost of living becomes, but the higher your transportation costs will be. In general, suburbs to the south and northwest of the city are the most affordable. Those near the North Shore are the most costly. Cicero, Oak Park, and Riverside are some of the less expensive suburbs around Chicago, while Hinsdale and Winnetka have higher housing costs.
Cost of Utilities
Utilities are the bright spot in our discussion of the cost of living in Chicago, as they’re lower than average. You’ll find that the average utility bill is about 5% less than national averages, per Payscale. In context, an average energy bill is around $208 a month.
Cost of Groceries
Groceries in Chicago aren’t terrible, averaging just 4% over national averages. Some neighborhoods have fewer grocery stores than others, which can affect grocery prices. An average price for a gallon of milk is just under $5, and eggs are similar.
Transportation Costs
Transportation costs are what can make or break your cost of living. If you want the suburban lifestyle but work downtown, you’ll have to figure gas and tolls or train fare into your cost of living calculations. If you live near your place of employment, you’ll find Chicago is a very walkable city with an extensive bus system that makes it easy to navigate without a car. If you walk whenever possible, you can pay next to nothing for transportation.
À la carte current fares for public transportation are as follows:
- L-Train - $2.50
- Bus - $2.25
- Transfer – Free
In addition, you can get an all-day bus and train pass for $5 or a 7-day pass for $20. However, the best value for daily commutes is the $75 30-day pass. This provides unlimited trips on buses and trains throughout the city, giving you fixed transportation costs that you can budget for every day. The city offers a few discounts for people with disabilities or students, which can lower these costs.
If you plan to drive into the city, you’ll have costs for fuel, tolls, which range from 40 cents to $1.50 per plaza, and parking. An average for these costs is hard to state since it will depend on where you live. I’ve noticed that the price for a gallon of gas tends to be about 50 cents more per gallon in the city than in some of the smaller cities surrounding Chicago. Most people find that public transit is the more affordable option if their suburb has a convenient train station.
Costs for Daily Living
You’ll need more than just groceries, housing, and transportation to live in Chicago. I find that there are many entertainment options that cost very little, such as the Lincoln Park Zoo and the city’s many parks and walking paths. However, there are so many additional entertainment options that I always budget some “fun money” to catch a show or concert.
Another cost to factor in is healthcare. We have some of the country's top hospital systems in our city, but the overall cost of healthcare is higher than average. Payscale estimates a 16% higher average cost of healthcare, but this will depend on your insurance and your healthcare needs. The good news is that if you need medical care, you’ll find excellent options within our city.
You’ll also want to factor in costs for Internet and your mobile phone, which MIT estimates to be around $145 a month. Childcare, if you have kids, will also add to your cost of living. The average cost of childcare for one child is around $1,200 per month. Annual taxes are around $10,390 a year for someone living alone.
Tips to Save on Your Chicago Lifestyle
You can always save money if you eat at home instead of eating out or shop using coupons, but within Chicago, there are some specific strategies to help you get the most value for your money. Here are some of my favorite tips:
Use Public Transit
The best way to save money is to take advantage of CTA and Pace transportation options. You have to plan extra time for your commute, as sometimes trains get delayed, but you won’t have to fight our infamous traffic, and you’ll end up paying less in the long run, especially when gas prices are high. With public transit, you’ll not only miss the cost of fuel, but you’ll also avoid the excessive parking fees our city is famous for.
Compare Service Providers
The average costs of things like Internet and some utilities we listed are average, and they can vary from provider to provider. You may be able to find discounts if you shop around. I find that switching my cell phone provider occasionally can lower that cost quite a bit.
If you rent an apartment, you’ll probably have some of your utilities covered. Water, sewer, and trash are almost always covered by your landlord, and if the building is old enough for a radiator heating system, that’s covered too. Internet, electricity, and gas are typically your responsibilities. I’ve found that some of the newer apartments have affordable bundles that include these, often with Internet included, for one set fee. These bundles help with budgeting.
Get a Roommate
Because rent prices are high in Chicago, many people choose to have a roommate if they are living alone. This can cut your housing and utility prices in half, leading to significant savings. Make sure to vet your potential roommate carefully, but you may find this to be a helpful way to lower your costs.
Look for Free Options
If you avoid the tourist traps of Chicago, you can find many free or low-cost entertainment gems. Restaurants and clubs with live music can be an affordable evening out. Touring a local art gallery can help you embrace the artistic scene. Chicago’s world-famous museums offer passes at a discount for residents, and they also have free days for Illinois residents scattered throughout the year. Concerts in the park are another fun option, but those can draw large crowds of tourists.
Get a Library Card
If you live in the district, get a Chicago Public Library card. You’ll find community events, media, and even free passes to the local museums and zoos available for patrons. Through the library, you can get free access to interesting adult education programs, computer labs, job search help, homework help for the kids, and access to free Mango Language learning opportunities. With digital resources available, you can access many options from your home, or you can head to your local branch to check out DVDs and books or take part in in-person classes and events.
The Bottom Line
So what’s the bottom line? We’ve discussed a bunch of numbers, so how much do you need to live comfortably in Chicago? Both MIT and Payscale agree that a single person in Chicago can live comfortably on around $50,000 a year. However, if you want a more upscale home, have a family, or can’t find a roommate, you'll need a higher salary.
So yes, Chicago is a more costly place to live, but the perks of this great city are worth it. With a little creativity, the use of local resources, and careful planning on where you live, you can make it fit within your budget.
