Chicago vs Raleigh: cost of living compared
Raleigh is 15% cheaper than Chicago overall. State income tax tops out around 4.5% in NC 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 Raleigh reveals a noticeable difference in overall cost of living, with Chicago being more expensive. This disparity is largely driven by higher costs across several categories in Chicago, including transportation, food, healthcare, and miscellaneous expenses. Raleigh, in contrast, aligns closely with the national average for overall costs, offering a more budget-friendly environment for daily expenditures.
Housing
When considering housing, Chicago presents a lower median home price than Raleigh, though its rental costs for a one-bedroom unit are somewhat higher. Raleigh's housing index is slightly above the national average, with higher home purchase prices. Both metros offer diverse housing options, from dense urban apartments to more suburban homes, but the financial commitment for homeownership differs considerably.
Taxes and everyday costs
Daily expenses show a clear advantage for Raleigh. Transportation, food, healthcare, and utilities are all noticeably cheaper there. Chicago's transportation costs are significantly higher, reflecting its dense urban environment and extensive public transit. While both states have income taxes, the rate in Illinois is slightly higher than in North Carolina, adding to the overall cost burden in Chicago.
Lifestyle trade-offs
Lifestyle differences are pronounced. Chicago offers a distinct four-season climate with cold, snowy winters and a dense, bustling urban core supported by extensive public transportation. Raleigh enjoys milder winters and a generally warmer climate, with a more car-dependent, sprawling layout. Chicago's pace is typically faster, while Raleigh offers a somewhat more relaxed atmosphere.
Bottom line
For those weighing a move, Raleigh generally offers a more economical daily existence, with lower costs across most spending categories. While Chicago might present a lower median home purchase price, its higher rental costs and significantly elevated everyday expenses, coupled with a slightly higher state income tax, mean a household budget will stretch further in Raleigh.
| Measure | Chicago, IL | Raleigh, NC |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 100 |
| Housing index | 97 | 106 |
| Transportation index | 121 | 97 |
| Food index | 105 | 95 |
| Healthcare index | 108 | 95 |
| Utilities index | 102 | 98 |
| Misc index | 108 | 90 |
| Median home price | $318,000 | $388,000 |
| Median 1-bedroom rent | $1,650/mo | $1,500/mo |
| Average commute | 34 min | 27 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Raleigh home with the True Cost Calculator.