Cost of Living in an Apartment vs. House in Chicago

Renting vs. Owning in Chicago: What You'll Pay

When comparing the cost of living in an apartment vs house in Chicago, the biggest factor is usually the monthly rent or mortgage payment. In Chicago, the average rent for a 2-bedroom apartment is around $2,200 per month, while the average rent for a 3-bedroom house is closer to $2,800 monthly. The typical rent for a 3BR single-family home in Chicago is $2,800 per month.

Of course, these are just averages - actual rents can vary widely based on the neighborhood, age of the property, included amenities, and other factors. Buying a home involves additional upfront costs like a down payment, closing costs, and often higher insurance and property tax expenses. For simplicity, this comparison will focus mainly on rental costs, which apply to a larger portion of Chicago residents.

Table: Cost Comparison - Apartment vs House

Here's a side-by-side breakdown of common monthly costs* for renting an apartment or house in Chicago:

*Estimates are for mid-range units with typical usage, expressed as gross monthly costs.

Utility and Upkeep Differences

In addition to the base rent, houses often come with higher utility bills than apartments. This is because:

• Houses are larger, with more space to heat and cool
• Older houses may have less efficient HVAC systems, windows, and insulation
• Houses usually have more exterior walls and attic space exposed to the elements
• Apartments can benefit from shared walls and resources with neighboring units

Maintenance is another key difference. With an apartment, major repairs like a leaky roof or broken appliance are usually the landlord's responsibility. Homeowners and house renters need to budget for both routine upkeep and unexpected fixes, which can add hundreds to the monthly cost.

Lifestyle Tradeoffs

Finances are just one part of the apartment vs house decision. Lifestyle fit is equally important. Many Chicago residents choose apartments for the walkability, simplicity, and urban feel. With an apartment, you can often walk to work, shops, restaurants, and parks. There's also less hassle with maintenance, yardwork, and shoveling snow.

For families or those seeking more space and privacy, houses are often the better choice. A single-family home provides a dedicated yard for kids and pets to play, extra bedrooms or an office, private parking, and more flexibility to customize the space. However, this comes with a longer commute, more upkeep, and less access to shared amenities like a pool or gym.

Which Is Cheaper Long Term in Chicago?

While renting an apartment is usually cheaper month-to-month, owning a home can be more cost-effective long-term. Assuming a 1.5% annual rent increase, a $2,200 apartment would cost about $140,000 over a 5-year period. The total cash spent on a comparable $400,000 house purchase, including the mortgage, taxes, insurance, maintenance, and opportunity cost of the down payment, would be around $135,000 over 5 years.

So all else being equal, buying becomes cheaper than renting in Chicago after about 5 years. The main financial advantage of ownership is building equity as you pay down the mortgage. But renting provides more flexibility and liquidity, which may be the priority for some households. There's no universally right answer.

FAQs About Housing Costs in Chicago

How much more does a house cost per month?
In Chicago, renting a house costs about $600 more per month than renting an apartment, on average. This factors in the higher base rent, increased utilities, and maintenance expenses. Buying a house involves even more costs, but builds equity over time.

Do houses always have higher utility bills?
Not always, but in most cases, yes. Older single-family homes tend to use more energy than apartments due to their size, layout, systems, and exposure to weather. However, newer houses with efficient appliances and good insulation can cost less to operate than some apartments.

Are apartments still cheaper with pet rent?
Usually, even with an extra pet rent fee of $30-$50 per month, apartments remain significantly cheaper than houses of the same size. The difference in base rent, utilities, and upkeep is often much greater than the added cost to keep a pet in an apartment.

Making the Right Housing Choice in Chicago

As this cost comparison shows, renting an apartment in Chicago tends to be about $1,000 cheaper per month than renting a house, and $1,500 less than owning a comparable home, on average. The tradeoff is usually space, privacy, and customization.

The best housing option depends on your specific budget, lifestyle, and long-term goals. Be sure to consider the full picture, including the monthly budget impact and additional housing costs like property taxes and HOA fees. And don't forget to factor in location, school district, transportation, and access to amenities.

With careful planning and realistic expectations, you can find the right apartment or house for your needs in Chicago. The key is striking a balance between financial sustainability and quality of life.