Is It Expensive to Live in Illinois? Here's What the Data Shows

Based on 2025 data analysis, yes — certain areas of Illinois rank among the most costly places to establish residency in the Midwest. New research from GOBankingRates reveals that residents in Illinois’ most expensive communities allocate over $5,000 monthly just to cover basic necessities including housing, food, utilities, healthcare and transportation. The question of whether it’s expensive to live in Illinois has a clear answer when examining the northern suburbs near Chicago, where property values and living expenses far exceed state and national averages.

Why Are These Illinois Communities So Costly?

The concentration of wealth in Chicago’s northern suburbs — including areas like Kenilworth and Winnetka — drives up both property values and the overall cost of living. Real estate prices in these neighborhoods average in the $1.2 to $1.9 million range based on 2025 data, substantially higher than Illinois’ statewide median. Consequently, mortgage payments alone consume a significant portion of household budgets in these areas. Combined with elevated costs for groceries, utilities, and healthcare that correlate with affluent communities, the total monthly expense for essential living costs reaches levels unattainable for average earners.

GOBankingRates analyzed the 30 Illinois cities with the highest property valuations using 2025 Zillow data, filtering for municipalities with populations exceeding 2,500 residents. The methodology incorporated current mortgage rates (6.30% for 30-year fixed loans), standardized national averages for household expenses, and local cost-of-living indices by category.

The Priciest Neighborhoods: Where Necessity Costs Peak

Five Illinois communities stand out as extraordinarily expensive to inhabit:

Kenilworth leads at $138,632 annually in necessity costs alone — equivalent to $11,553 monthly. The 2025 average home value reaches $1,896,355, with monthly mortgage payments of $9,390.

Winnetka follows at $130,246 annually ($10,854 monthly), featuring properties averaging $1,759,880 with $8,715 monthly mortgage obligations.

Glencoe comes third at $113,908 annually ($9,492 monthly), where homes average $1,488,738 in value and mortgages run $7,372 monthly.

Hinsdale ranks fourth at $98,119 annually ($8,177 monthly), with home values averaging $1,228,133 and $6,081 monthly mortgage payments.

Lake Forest rounds the top five at $92,611 annually ($7,718 monthly), featuring average property values of $1,172,231 and $5,805 monthly home financing costs.

These five represent the extreme end of Illinois’ real estate market, where housing costs alone consume thousands of dollars monthly before accounting for any other living expenses.

Mid-Range Expensive Areas: $80,000-$89,000 Annual Necessity Costs

Between the ultra-premium neighborhoods and more accessible communities exists a tier where it remains very expensive to live in Illinois, though somewhat more attainable:

South Barrington ($88,808 annually), Oak Brook ($85,087 annually), Barrington Hills ($84,483 annually), and Wilmette ($82,448 annually) represent this category. In these areas, 2025 home values cluster between $900,000 and $1,080,000, requiring monthly mortgage payments ranging from $4,795 to $5,355. Combined with other necessities, monthly budgets still exceed $6,800, placing these communities firmly in the expensive designation.

Slightly Less Costly But Still Premium: $70,000-$79,000 Range

The next tier includes communities like Northfield ($80,247 annually), Burr Ridge ($78,196 annually), Riverwoods ($77,878 annually), Long Grove ($76,726 annually), River Forest ($73,761 annually), Western Springs ($73,078 annually), Kildeer ($72,142 annually), Inverness ($71,351 annually), North Barrington ($71,003 annually), and Highland Park ($69,882 annually).

While these areas remain expensive to live in Illinois by most standards, they offer relative value compared to the top five. Home values typically range from $780,000 to $930,000, with monthly necessity costs between $5,800 and $6,700. These communities still require six-figure annual household incomes to maintain comfortable living standards.

Rounding Out the 20: The Most “Affordable” of Illinois’ Expensive Cities

Northbrook completes the list at $69,744 annually ($5,812 monthly), featuring an average home value of $760,954 with $3,768 monthly mortgage payments. While technically the least expensive of Illinois’ 20 priciest cities, Northbrook still demands annual necessity costs approaching $70,000 — a threshold few households across America can comfortably manage.

Understanding the Data Behind “Expensive”

The analysis combined five expense categories: mortgage payments (assuming 20% down payment, 30-year fixed mortgages at 6.30%, with no HOA fees or property taxes), groceries, utilities, healthcare, and transportation costs. National averages for household expenses were adjusted using individual city cost-of-living indices to reflect local variations. Data collection occurred in October 2025 using current real estate valuations and standardized financial rates.

The Bottom Line on Illinois Living Costs

Yes, it is expensive to live in Illinois — specifically in the Chicago metropolitan area’s affluent suburbs. Residents selecting homes in these 20 communities face annual necessity costs ranging from $69,744 to $138,632, meaning monthly obligations for basic living expenses alone dwarf what typical American households earn. For comparison, median household income nationally sits around $75,000 annually, rendering these Illinois neighborhoods economically accessible only to the substantially wealthy.