Chicago vs Phoenix

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Illinois salaries · Arizona salaries

Living in Chicago vs Phoenix

Housing is typically the biggest factor in any cost-of-living comparison. Chicago has a housing index of 112 while Phoenix sits at 102 (national average = 100). The median home in Chicago costs $310,000 compared to $350,000 in Phoenix, a difference of $40,000. Monthly rent follows a similar pattern: $1,700 in Chicago versus $1,400 in Phoenix.

Groceries and everyday expenses show a notable difference: Chicago scores 104 while Phoenix scores 99. Both cities are close to the national average for grocery costs.

Healthcare costs in Chicago (101) are higher than Phoenix (95). Both are close to the national average.

Median household income in Chicago is $62,097 compared to $57,459 in Phoenix. When adjusted for cost of living, income goes further in Phoenix.

Relocating: Chicago vs Phoenix

If you are considering a move between Chicago (index: 107) and Phoenix (index: 100), the 7% cost difference has real implications for your budget. Phoenix is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Chicago can afford $1,449/month, while the median household in Phoenix can afford $1,341/month. With median homes at $310,000 in Chicago versus $350,000 in Phoenix, homeownership requires above-median income in the pricier market.

Renting vs buying: At $1,700/month in Chicago and $1,400/month in Phoenix, renters face similar costs in both cities. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes significantly further in Phoenix. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Chicago (107) vs Phoenix (100)

The cost of living index uses 100 as the national average. Chicago at 107 is 7% above the US average, while Phoenix at 100 is 0% below average. Both cities are close to the national average in overall costs.

A 7-point index spread separates Chicago from Phoenix, a moderate gap that adds up across monthly bills but is manageable with a typical dual-income household budget. Transportation shows the widest single-category margin at 116 versus 103, making it the area where residents will feel the most day-to-day price difference between Chicago and Phoenix. Housing, the largest line item for most households, favors Phoenix with indices of 102 versus 112. Median home prices of $310,000 in Chicago and $350,000 in Phoenix underscore this gap.

For renters: With median rents of $1,700/month in Chicago and $1,400/month in Phoenix, the annual rent difference is approximately $3,600. Over a 5-year period, that compounds to $18,000 in savings by choosing the more affordable city.

For homebuyers: The $40,000 difference in median home prices between Chicago and Phoenix translates to roughly $2,400 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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