Chicago is a large city that has much to offer its residents and visitors, including incredible food, a good quality of life and a wide variety of entertainment. This beautiful city is also known for its history and culture, making it a popular destination for travelers around the world. If you are one of those people considering moving to this incredible city, you may be wondering what the cost of living in Chicago might be.
However, before moving to this popular location, you may want to find out what the average rent in Chicago is. You may also be wondering what the average Chicago rent is, and monthly expenses for things like transportation and food. This guide contains essential information you need to know before moving to this densely populated city and gives you a better idea about the cost of living in Chicago.
What you need to know before moving to Chicago
Before moving to Chicago, you should know that this city is home to many Fortune 500 companies such as Kraft Foods Group, Inc., the Allstate Corporation, Caterpillar Inc. and McDonald’s Corporation. This means that there is plenty of employment available for you.
According to Glassdoor Economic Research, Chicago had 195,808 job openings in November 2020. There are also many available positions offered by various industries such as business services, construction, real estate services, finance and insurance services. You can work in Chicago as a graphic designer, teacher, electrical engineer, accountant, barista, nurse, or production engineer.
What is the cost of living in Chicago?
The average cost of living in Chicago is $63,251 per year, which is 23 percent higher than the national average. Several factors contribute to this, such as the average salary of employers, the type of career you choose and what it should cost to buy or rent a house or apartment.
How is the cost of living calculated?
The cost of living is calculated by comparing the prices of various goods and services that the buyers spend their money on. The cost of living in Chicago is calculated by taking into account the costs of health care, monthly rent, and food, which are then weighted by spending habits and personal budgets.
What contributes to the cost of living in Chicago?
Average Rent in Chicago
The median rent in Chicago is $2,080 per month. Housing costs are affected by several factors, such as quality, size and location of the apartment or house you are renting. You can choose an affordable studio apartment to live in rather than a two bedroom apartment if you are on a budget.
The most affordable neighborhood in Chicago is The Island, where the average rent is around $607 per month. On the other hand, Streeterville is the most expensive neighborhood, with a monthly rent of $2,819. However, the larger the apartment, the higher the housing costs.
Average transportation costs in Chicago
Transportation costs are reasonable in Chicago. The average March 2022 gas price in Chicago was $4.53 per gallon. However, if you can’t afford your own car, you can opt for public transportation and take the ‘L’ train, which has an average ticket price of $2.50. If you choose to take the bus, the individual price for the fare is $2.25. Public transportation is well organized in Chicago and can also be a bit cheaper than driving all the time.
Average Food Costs in Chicago
The median food cost in Chicago is $7,302 per year, according to the U.S. Bureau of Labor Statistics (BLS). This is not surprising given that part of a person’s daily expenses is the food they will consume. The average cost of food when you eat at home is $4,571 per year, while dining out will cost you an average of $2,731 per year. In addition, food prices in Chicago are eight percent higher than the national average.
Average Healthcare Costs in Chicago
The average cost of health care in Chicago is $5,691 per year. Health care in Chicago is one percent higher than the national average. The money people spend on health care includes doctor visits, which cost an average of $112.15 per visit. A dentist’s visit can set you back $96.35, and an optometrist’s visit will set you back $105.09.
Chicago Average Utility Cost
The average selling price of electricity in Illinois is 9.75 cents per kilowatt hour. The average monthly energy bill in Chicago is $151.23. Chicago utility prices are 10 percent lower compared to the national average, according to PayScale. As for cable and Internet service, the average monthly cost for a household is $114.
Other Chicago Expenses to Consider
In addition to the rental and transportation costs, there are other costs to consider if you live in Chicago. For example, the average person in Chicago spends about $3,292 per year on entertainment. In addition, a single person can also purchase some personal care products and services, which can cost an average of $803 each year. Other expenses you may also want to look into include clothing, personal insurance, and retirement contributions.
Should I Buy or Rent in Chicago?
If you have the resources and money to buy a home, it is better to invest in real estate in Chicago, especially if you see yourself living there for an extended period of time. On the other hand, renting may be the best option if you only want to stay in this city for a few years. To further assist you in your decision, below are some information to consider regarding real estate prices.
What is the average salary in Chicago?
The median salary in Chicago is $74,000 per year. Your salary can still be affected by factors such as your occupation, your position in a company, and even the type of company you work for. The most popular occupation in Chicago is working as a software engineer, with an average salary of $88,059.
Salary Comparison by City in United States
What is a good salary?
A good salary for Chicago is $64,000 and above as the cost of living in Chicago is $63,251 per year. However, it is important to note that a good salary is relative and varies from person to person. What is considered a good salary also depends on the cost of living in that particular area.
Can You Afford the Average Cost of Living in Chicago?
If you make $65,000 a year, you can afford the average cost of living in Chicago, including rent, food, utilities, and other bills. Chicago not only provides you with employment opportunities, it also offers you a rich culture that you will enjoy. You’ll be amazed by the city’s massive skyscrapers and world-class museums.
Frequently Asked Questions About Cost of Living in Chicago
Yes, it is expensive to live in Chicago, as the cost of living is 23 percent higher than the national average. However, despite the high cost of living, the city also offers great job opportunities to help you earn a high salary.
Whether you live in New York or Chicago depends on your preferences. New York should be your choice if you want to live in a vibrant city with exclusive shops and great sights. However, you should live in Chicago because the average salary is higher and this populous city has many great restaurants for you to try.
You should avoid going to places with a high crime rate. One area with a high crime rate is West Garfield Park. In addition, don’t go to places that make you feel uncomfortable, especially if you are new to the city.
The cost of living in Chicago for a single person is $998.52 per month, although this does not include rent. Rent for a single person can range from $1,841 to $2,132 per month. It could cost you about $2,500 to $3,000 to live in Chicago, but it still depends on your lifestyle and any unexpected costs you have to pay.
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