Is Denver More Expensive Than Chicago?

Individuals often evaluate the financial implications of living in different U.S. cities. Denver, Colorado, and Chicago, Illinois, are frequently compared urban centers with distinct economic landscapes. Understanding the nuances of expenses in these two cities is important for making informed personal finance decisions. This analysis aims to provide a clear, category-by-category comparison of living costs, shedding light on where one might expect their income to stretch further.

General Cost of Living Overview

Denver’s cost of living is generally higher than Chicago’s, with reports indicating it is 16.0% to 20.7% more expensive. These differences suggest that a salary required to maintain a certain standard of living in Denver would need to be higher than in Chicago, with estimates suggesting a need for an income around $66,502 in Denver to match a $60,000 income in Chicago.

Housing Expenses

Housing represents the most substantial portion of an individual’s budget, and there are notable differences between Denver and Chicago. For renters, the average rent in Chicago was approximately $1,958 per month, with one-bedroom apartments averaging around $1,880 and two-bedrooms exceeding $2,400 monthly. In contrast, average rent in Denver was about $1,968 per month, though some data indicates Denver’s average rent is 15.2% lower than Chicago’s.

For homeownership, median home prices highlight a significant disparity. Chicago’s median home price was approximately $340,000. Denver’s median home price, however, was considerably higher, estimated at around $601,000. Effective property tax rates in Illinois are among the highest in the nation, with an average rate around 2.18% to 2.23%. Colorado, by contrast, has one of the lowest effective property tax rates, typically around 0.45% to 0.50%. Therefore, despite lower home prices, Chicago homeowners often face considerably higher annual property tax bills compared to their counterparts in Denver.

Transportation Expenses

Transportation costs associated with daily commuting and personal vehicle use vary between the two cities. Public transportation offers a more cost-effective option in Chicago, with a regular monthly pass for the Chicago Transit Authority (CTA) typically costing around $75. Denver’s Regional Transportation District (RTD) monthly pass is somewhat higher, priced at $88. Both cities offer discounted fares for eligible groups, such as seniors and individuals with disabilities.

For private vehicle owners, gasoline prices generally tend to be higher in Chicago, with an average of about $3.97 per gallon, compared to Denver’s average of approximately $3.32 per gallon. Car insurance rates also differ. In Denver, average annual car insurance costs range from approximately $2,400 to $3,710. Chicago’s average annual car insurance costs can vary, with estimates ranging from $1,532 to $3,644 per year. Monthly parking expenses average around $155 to $205 in Denver, while Chicago typically sees monthly parking costs ranging from $135 to $190 on average.

Everyday Living Costs

Beyond housing and transportation, daily expenses contribute to the overall cost of living. Grocery costs in Chicago are marginally higher, about 1.9% more expensive than in Denver. For instance, a gallon of milk is approximately $4.24 in Chicago compared to $4.03 in Denver.

Utility expenses, which include electricity, heating, cooling, water, and garbage, also show a difference. The average cost of utilities in Chicago is about 6.1% higher than in Denver. Healthcare costs, conversely, are reported to be slightly lower in Chicago, approximately 2.1% less than in Denver.

Leisure and dining costs also vary. An inexpensive meal at a restaurant might be around $21.00 in Chicago, compared to $25.00 in Denver. A three-course meal for two at a mid-range restaurant could cost about $100.00 in Chicago and $95.00 in Denver.