Chicago vs Denver: cost of living compared
Denver is 8% more expensive than Chicago overall. State income tax tops out around 4.4% in CO vs 4.95% in IL.
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
Comparing Chicago and Denver reveals a noticeable difference in overall cost of living. Denver stands out as the more expensive metro, primarily driven by its significantly higher housing costs. While some everyday expenses like transportation are cheaper in Denver, the substantial gap in housing prices makes Chicago the more budget-friendly option for most households looking at the big picture. This key difference influences the total financial commitment in each city.
Housing
Housing presents the biggest financial divergence between these two cities. Both buying and renting are considerably more expensive in Denver, with median home prices and typical one-bedroom rents showing a much bigger gap. Chicago offers more affordable options, often featuring a mix of historic brick buildings and high-rise living. Property taxes in Chicago can be a significant ongoing cost for homeowners, while Denver's housing stock often includes newer constructions and mountain-adjacent properties.
Taxes and everyday costs
When it comes to daily expenses, some categories show interesting variations. Colorado's state income tax rate is slightly lower than Illinois's. Transportation costs are noticeably higher in Chicago, reflecting its dense urban environment and extensive public transit system, whereas Denver's transportation expenses are more modest. Food, healthcare, utilities, and miscellaneous goods and services are roughly similar in price between the two metros, meaning daily spending habits on these items won't see dramatic shifts.
Lifestyle trade-offs
Beyond costs, the lifestyle differences are distinct. Chicago offers a classic dense urban experience with a vast public transportation network, a flat landscape, and a climate featuring cold, snowy winters and humid summers. Denver, nestled near the Rocky Mountains, provides a sunnier, drier climate with four distinct seasons and a higher elevation. Its lifestyle is often more outdoor-oriented, and while public transit is expanding, it can feel more car-dependent than Chicago.
Bottom line
For those weighing a move, the financial bottom line largely hinges on housing. Chicago offers a more accessible entry point into homeownership and renting, making it the more economical choice overall. While Denver provides a lower state income tax and cheaper transportation, these savings are generally outweighed by its much higher housing market. A household budget will stretch further in Chicago, especially considering the significant difference in property values and rental rates.
| Measure | Chicago, IL | Denver, CO |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 128 |
| Housing index | 97 | 146 |
| Transportation index | 121 | 104 |
| Food index | 105 | 105 |
| Healthcare index | 108 | 108 |
| Utilities index | 102 | 98 |
| Misc index | 108 | 108 |
| Median home price | $318,000 | $548,000 |
| Median 1-bedroom rent | $1,650/mo | $1,950/mo |
| Average commute | 34 min | 28 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Denver home with the True Cost Calculator.