How much does it cost to live the ‘American Dream’ in IL? What one analysis says
Americans are consistently worried about inflation and the cost of living, and a recent analysis bears that out, finding the minimum household income needed to live comfortably in the country’s 50 largest cities is approaching six figures.
Drawing data from various sources, the analysis from finance website GoBankingRates put the minimum national income needed at $89,000 annually, considering factors such as grocery cost and average mortgage expenses. The analysis drew data from Sperling’s BestPlaces, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey and Zillow’s Home Value Index, among other sources.
What it means to live the “American dream” obviously varies between individuals, so as a baseline for its analysis, GoBankingRates followed the 50/30/20 rule. The rule states 50% of household income should go to essentials, 30% to discretionary spending and 20% to savings and debt repayment.
Chicago was included in GoBankingRate’s analysis. Here are the costs that inform that ranking and how the country’s largest cities compare.
How much does it cost to live comfortably in Chicago, IL?
Chicago is in the middle of the pack, ranking 27th in GoBankingRates’ cost of living analysis of the 50 largest cities in the U.S. That means it’s a much more affordable alternative than the most expensive cities on the list, with four of the top five all in California. San Jose in the San Francisco Bay Area takes the No. 1 spot with a minimum annual income of $319,495 required to live comfortably.
Compare that to Chicago, where GoBankingRates puts the minimum household income for living comfortably at $121,281 annually. The baseline cost of living is half that amount at $61,000. Living the “American dream” under the website’s analysis means earning double the annual cost of living. Its analysis considers expenses for households with married couples who have children.
The median household income in Illinois stands at $80,306, according to a 2023 estimate from the U.S. Census Bureau’s American Community Survey. For married couples specifically, the median household income is higher at $120,927, per the 2023 Census data.
In Chicago, Census data puts the median household income at $74,474.
When it comes to grocery costs per year, GoBankingRates puts the amount at $8,807. The average monthly mortgage cost is $1,813.
How do other cities compare on the ‘American Dream’
Here are the top 10 large U.S. cities where the living the “American dream” has the highest income threshold, according to GoBankingRates:
1. San Jose, Calif.: $319,000
2. San Francisco: $297,000
3. San Diego, Calif.: $242,000
4. Los Angeles: $234,000
5. New York City: $220,000
6. Long Beach, Calif.: $215,000
7. Seattle: $212,000
8. Oakland, Calif.: $205,000
9. Boston: $199,000
10. Washington, D.C.: $187,000
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