Chicago vs New Orleans: cost of living compared
New Orleans is 22% cheaper than Chicago overall. State income tax tops out around 4.25% in LA 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 New Orleans reveals a noticeable difference in overall cost of living. New Orleans is generally more affordable across the board, with its overall expenses being significantly lower than the national average. Chicago, in contrast, is more expensive than the national average. This disparity is largely driven by housing costs, which are substantially higher in Chicago, but other categories also contribute to the gap.
Housing
Housing costs present a major contrast. Both median home prices and typical one-bedroom rents are considerably higher in Chicago than in New Orleans. While not explicitly detailed, property taxes and insurance costs can vary significantly between regions, and Chicago's older, denser housing stock differs from New Orleans' historic architecture and flood-prone areas, which may influence insurance premiums.
Taxes and everyday costs
Daily expenses also vary. New Orleans generally offers lower costs for food, healthcare, and miscellaneous goods and services. Transportation costs are also notably cheaper in New Orleans. While both states have income taxes, the top marginal rate in Chicago's state is slightly higher. Utility costs are roughly similar, though New Orleans' state has slightly higher utility expenses.
Lifestyle trade-offs
Beyond costs, lifestyle differences are apparent. Chicago experiences distinct seasons, including cold winters, while New Orleans has a humid, subtropical climate with mild winters and hot summers, and faces hurricane risks. Chicago offers extensive public transit options, leading to longer average commutes, whereas New Orleans relies more on personal vehicles but has a shorter typical commute time. Chicago is a denser, larger metropolitan area.
Bottom line
For those considering a move, a household budget would stretch much further in New Orleans than in Chicago. The most significant savings would be realized in housing, but nearly all other major spending categories, including transportation and food, are also more affordable in New Orleans. While both cities offer unique experiences, the financial implications of living in Chicago are substantially greater.
| Measure | Chicago, IL | New Orleans, LA |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 92 |
| Housing index | 97 | 74 |
| Transportation index | 121 | 93 |
| Food index | 105 | 95 |
| Healthcare index | 108 | 92 |
| Utilities index | 102 | 108 |
| Misc index | 108 | 88 |
| Median home price | $318,000 | $248,000 |
| Median 1-bedroom rent | $1,650/mo | $1,200/mo |
| Average commute | 34 min | 26 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific New Orleans home with the True Cost Calculator.