Birmingham vs Chicago: cost of living compared
Chicago is 51% more expensive than Birmingham overall. State income tax tops out around 4.95% in IL vs 5% in AL.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Birmingham offers a significantly more affordable cost of living compared to Chicago, which is considerably more expensive than the national average. This difference is largely driven by housing costs, but nearly all other spending categories also contribute to Birmingham's overall economic advantage. Moving from Chicago to Birmingham would likely result in a substantial reduction in overall household expenses, making a noticeable impact on a budget.
Housing
Housing in Birmingham is substantially more affordable, whether you are looking to buy a home or rent an apartment. Median home prices and one-bedroom rents are considerably lower than in Chicago. While Birmingham often features more single-family homes with yards, Chicago's housing stock includes a greater prevalence of multi-unit buildings and high-rises. Property taxes and potential homeowner association fees can also be higher in the Chicago area.
Taxes and everyday costs
Daily expenses for transportation, food, healthcare, and utilities are all noticeably higher in Chicago than in Birmingham. While state income tax rates are roughly similar between the two states, your overall spending on essential goods and services will be considerably less in Birmingham. This means that routine purchases, medical care, and getting around will demand a much smaller portion of your income in the Alabama metro.
Lifestyle trade-offs
Life in Birmingham generally offers a milder climate with four distinct seasons, though winters are less harsh than Chicago's often severe cold and heavy snow. Getting around in Chicago heavily relies on its extensive public transit system, while Birmingham is more car-dependent, though it has a shorter average commute. Chicago provides a dense, urban environment with a faster pace, contrasting with Birmingham's more spread-out, southern city feel.
Bottom line
Relocating from Chicago to Birmingham would likely lead to a significant improvement in your household budget, primarily due to Birmingham's much lower housing costs. While everyday expenses like groceries and utilities are also more affordable, the substantial difference in housing prices is the biggest factor. This move could free up a considerable portion of your income, despite the broadly similar state income tax rates.
| Measure | Birmingham, AL | Chicago, IL |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 118 |
| Housing index | 58 | 97 |
| Transportation index | 88 | 121 |
| Food index | 85 | 105 |
| Healthcare index | 88 | 108 |
| Utilities index | 92 | 102 |
| Misc index | 75 | 108 |
| Median home price | $198,000 | $318,000 |
| Median 1-bedroom rent | $925/mo | $1,650/mo |
| Average commute | 25 min | 34 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Chicago home with the True Cost Calculator.