Chicago vs Tempe

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 Tempe

Housing is typically the biggest factor in any cost-of-living comparison. Chicago has a housing index of 112 while Tempe sits at 114 (national average = 100). The median home in Chicago costs $310,000 compared to $400,000 in Tempe, a difference of $90,000. Monthly rent follows a similar pattern: $1,700 in Chicago versus $1,600 in Tempe.

Groceries and everyday expenses show a narrower gap: Chicago scores 104 while Tempe scores 100. Both cities are close to the national average for grocery costs.

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

Median household income in Chicago is $62,097 compared to $56,068 in Tempe. When adjusted for cost of living, purchasing power is similar in both cities.

Relocating: Chicago vs Tempe

If you are considering a move between Chicago (index: 107) and Tempe (index: 106), the 1% cost difference has real implications for your budget. Tempe 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 Tempe can afford $1,308/month. With median homes at $310,000 in Chicago versus $400,000 in Tempe, homeownership requires above-median income in the pricier market.

Renting vs buying: At $1,700/month in Chicago and $1,600/month in Tempe, 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 about equally far in both cities. 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 Tempe (106)

The cost of living index uses 100 as the national average. Chicago at 107 is 7% above the US average, while Tempe at 106 is 6% above average. Both cities are close to the national average in overall costs.

Chicago and Tempe land within 1 points of each other on the composite index (107 vs 106), so the overall cost picture is similar. 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 Tempe. Housing costs are comparable between the two metros, with Chicago at 112 and Tempe at 114 on the housing sub-index and median home prices of $310,000 and $400,000 respectively. Neither city is cheaper across the board: Chicago has an edge in housing, while Tempe is more affordable for groceries and utilities. Your actual savings depend on which categories consume the biggest share of your personal budget.

For renters: With median rents of $1,700/month in Chicago and $1,600/month in Tempe, the annual rent difference is approximately $1,200. Over a 5-year period, that compounds to $6,000 in savings by choosing the more affordable city.

For homebuyers: The $90,000 difference in median home prices between Chicago and Tempe translates to roughly $5,400 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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