Is It Expensive to Live in Illinois? A Look at the State's 20 Priciest Communities

Illinois is often viewed as part of the affordable Midwest, but this reputation masks a significant reality: certain pockets of the state rank among America’s most expensive places to establish residence. A recent GOBankingRates analysis reveals that residents in Illinois’ most costly communities face annual necessity expenses exceeding $138,000—primarily driven by soaring real estate values and mortgage obligations. This raises an important question: Is it expensive to live in Illinois? The answer depends heavily on which communities you’re considering.

The research methodology examined 30 Illinois cities with the highest 2025 home values and populations above 2,500, ultimately isolating the 20 most economically demanding areas. For each location, the study calculated total yearly expenditures by combining mortgage payments (based on a 30-year fixed-rate loan at 6.30% with 20% down payment) alongside essential costs for groceries, utilities, healthcare, and transportation. All figures were based on 2025 data sourced from Zillow, the U.S. Census Bureau, and the Bureau of Labor Statistics.

The Luxury Tier: Illinois’ Most Stratospheric Living Costs

The state’s most exclusive communities present an entirely different affordability picture. Kenilworth dominates the rankings as Illinois’ most expensive municipality to call home, where annual necessity expenses total $138,632—translating to $11,553 monthly. The 2025 average property valuation there reached $1,896,355, with monthly mortgage payments alone consuming $9,390 of household income.

Winnetka follows in second position with an annual cost burden of $130,246, featuring 2025 home values averaging $1,759,880 and monthly mortgage obligations of $8,715. Third-ranked Glencoe demands $113,908 annually for essentials, supported by property valuations of $1,488,738.

These three neighborhoods represent the apex of expensive living in Illinois, where housing costs account for the vast majority of monthly financial obligations.

High-End Suburban Communities: Still Formidable Expenses

A second tier of expensive Illinois communities emerges when examining Hinsdale ($98,119 annually), Lake Forest ($92,611 annually), and South Barrington ($88,808 annually). These suburbs maintain 2025 average home values between $1 million and $1.2 million, creating annual necessity expenses that would strain most middle-class households.

Oak Brook, Barrington Hills, Wilmette, and Northfield round out this category, each demanding between $78,000 and $85,000 in annual necessity costs. While notably less than the luxury tier, these expensive communities still require substantial income to maintain comfortable living standards.

Mid-Range Expensive Neighborhoods: Premium Prices With Slightly Better Balance

Illinois’ remaining expensive communities—including Burr Ridge ($78,196), Riverwoods ($77,878), Long Grove ($76,726), and River Forest ($73,761)—offer marginally more reasonable necessity costs while maintaining home values exceeding $800,000.

This group spans properties valued between approximately $780,000 and $930,000, with monthly necessity expenses ranging from roughly $5,800 to $6,800. While these figures remain substantially elevated compared to national averages, they represent the more accessible end of Illinois’ expensive real estate market.

Western Springs, Kildeer, Inverness, North Barrington, Highland Park, and Northbrook complete the ranking, with annual necessity expenses ranging from $69,000 to $73,000. These communities still command substantial financial commitments, particularly regarding down payment requirements and ongoing mortgage obligations.

Understanding What Drives Expensive Living in Illinois

The primary driver of expensive housing costs in these Illinois communities is clear: real estate valuations. Properties in these neighborhoods appreciate to levels that dramatically exceed state and national medians, creating mortgage payments that dwarf all other monthly necessities combined.

For context, in the most expensive Illinois communities, mortgage payments typically represent 75-85% of total monthly necessity costs. The remaining 15-25% covers groceries, utilities, healthcare, and transportation—services that largely follow national averages when adjusted for regional cost-of-living indices.

This concentration of expense in the housing sector means that moving to even slightly less expensive neighborhoods can produce substantial monthly savings. The difference between Kenilworth’s $11,553 monthly necessity expense and Northbrook’s $5,812 monthly expense represents over $5,700 in monthly savings—a 50% reduction—despite remaining in the state’s expensive communities.

Methodology: How We Identified Illinois’ Expensive Places to Live

GOBankingRates selected 30 Illinois cities with the highest 2025 home values and populations exceeding 2,500. Using Zillow’s August 2025 property data, the U.S. Census Bureau’s 2023 American Community Survey for population figures, and the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey for cost categories, the analysis calculated:

• 2025 average home values and corresponding monthly mortgage payments (assuming 20% down, 30-year term at 6.30% interest, with no HOA fees, PMI, or property taxes factored)
• National average costs for groceries, utilities, healthcare, and transportation
• Regional cost-of-living adjustments by category using Sperling’s BestPlaces data
• Combined monthly and annual necessity costs for each community

The ranking reflects total annual necessity expenses only, making it the definitive measure of which Illinois communities prove most expensive for residents focused on essential expenditures. This methodology ensures that comparisons between neighborhoods remain consistent and data-driven.

The research demonstrates that while the Midwest maintains its reputation for affordability relative to coastal states, asking “Is it expensive to live in Illinois?” yields complex answers depending on location. These 20 communities represent where Illinois living costs reach their maximum, creating significant financial planning challenges for prospective residents.