What Makes Illinois So Expensive? Breaking Down the Costs Across the State's Priciest Neighborhoods

Is it expensive to live in Illinois? The answer is nuanced. While the Midwest generally offers moderate living expenses, certain Illinois communities present a starkly different picture. Recent research reveals that residents in the state’s most sought-after neighborhoods face monthly necessity costs exceeding $5,000—a figure that demands careful financial planning.

The True Price of Living in Affluent Illinois Communities

Understanding the cost breakdown is essential for anyone considering a move to Illinois’ premium residential areas. The analysis examined 30 Illinois cities with the highest 2025 home values and populations above 2,500, ultimately identifying 20 communities where the financial commitment reaches premium levels.

Top-Tier Luxury Markets: Where Costs Reach Six Figures

The pinnacle of expense in Illinois centers around the North Shore and western suburbs. Kenilworth leads the pack with annual necessity costs of $138,632—translating to $11,553 monthly. The 2025 average home value sits at $1,896,355, with monthly mortgage payments of $9,390. Just behind is Winnetka, demanding $130,246 annually ($10,854 monthly) with average home values at $1,759,880.

Glencoe occupies the third position, requiring $113,908 annually for basic living expenses, supported by 2025 average home values of $1,488,738 and monthly mortgage obligations of $7,372. These ultra-premium communities share common characteristics: exceptional school districts, established architectural heritage, and proximity to Chicago’s central business district.

Upper-Mid-Range Communities: $80,000-$100,000 Annually

A secondary tier of expensive Illinois locations offers somewhat more accessible entry points while maintaining substantial costs. Hinsdale commands $98,119 in annual necessity expenses with average home values of $1,228,133. Lake Forest follows at $92,611 annually, while South Barrington requires $88,808.

This category includes Oak Brook ($85,087 annually), Barrington Hills ($84,483), and Wilmette ($82,448). Each maintains 2025 average home values between $900,000 and $1,100,000, creating a distinct market segment for affluent buyers seeking premium locations at marginally lower cost thresholds than ultra-luxury neighborhoods.

Managing Necessity Costs: Breaking Down the Expenses

The research methodology combined six primary expense categories: mortgage payments (assuming 20% down payment, 30-year fixed rate at 6.30%, excluding HOA fees, PMI, and property tax), groceries, utilities, healthcare, and transportation. These categories were calculated using national averages adjusted for each city’s specific cost-of-living index.

Northfield illustrates this model effectively: with $932,314 average home values, monthly necessity costs total $6,687, accumulating to $80,247 annually. This breaks down across housing, food, utilities, medical services, and commuting expenses typical for Illinois’ affluent suburbs.

The Mid-Range Expensive Zone: $70,000-$80,000 Annually

Communities like Burr Ridge ($78,196 annually), Riverwoods ($77,878), and Long Grove ($76,726) occupy an interesting middle ground. While still substantially expensive, these neighborhoods offer slightly more moderate entry points with average home values between $900,000 and $930,000.

River Forest ($73,761 annually) and Western Springs ($73,078) continue this pattern, requiring approximately $6,000-$6,150 in monthly necessity spending. Kildeer, Inverness, North Barrington, Highland Park, and Northbrook complete the list, with annual necessity costs ranging from $69,744 to $72,142.

Is It Expensive to Live in Illinois? A Direct Answer

Yes—but only in specific concentrated areas. The research demonstrates that Illinois’ priciest neighborhoods cluster primarily in two regions: the North Shore suburbs (Kenilworth, Winnetka, Glencoe, Wilmette) and the western affluent belt (Hinsdale, Oak Brook, Barrington Hills, South Barrington).

Monthly necessity costs across these 20 communities range from $5,812 (Northbrook) to $11,553 (Kenilworth), reflecting a significant premium over typical Midwest expenses. The 2025 average home values span from approximately $760,000 to $1.9 million, creating substantial barriers to entry.

Key Considerations for Prospective Residents

For those contemplating relocation to Illinois’ expensive neighborhoods, several factors warrant attention. First, mortgage payments alone consume $3,768 to $9,390 monthly across these communities. Second, additional costs—groceries, utilities, healthcare, and transportation—compound housing expenses substantially.

Third, these necessity calculations exclude property taxes, which can significantly impact total financial obligations. Fourth, the lifestyle appeal of established communities, top-rated schools, and cultural amenities justifies costs for many residents seeking long-term stability.

The Bottom Line

Is it expensive to live in Illinois’ premium neighborhoods? Unquestionably. Residents in these 20 communities face annual necessity costs exceeding $69,000, with the most exclusive areas approaching or exceeding $138,000 annually. However, these costs reflect premium locations offering distinct advantages: excellent schools, architectural character, established communities, and proximity to major employment centers.

Understanding this cost structure—particularly the mortgage, grocery, utility, healthcare, and transportation components—enables informed decision-making for those considering Illinois as their next residence.