Rent vs Buy in Chicago, IL
At a median listing price of $389,000, Chicago lands close to the national middle. There is no built-in advantage to renting or buying here, so your own inputs decide it.
With rent around $1,604 a month, Chicago's price-to-rent ratio lands close to the national middle. No structural edge falls to either renting or buying, so your own numbers settle it. An effective property tax rate of 1.98% puts a standing monthly cost on owners that renters never see.
How Chicago compares
- Homes in Chicago cost 12% less than the national median of $443,255.
- Rent in Chicago runs 27% lower than the U.S. median of $2,200/mo.
- Homes in Chicago cost 25% more than the Illinois median of $312,423.
What the numbers say
On a $389,000 median home at 1.98%, property tax in Chicago runs about $642 a month ($7,702 a year). That is the single largest owning cost a renter never pays directly, and it is worth modeling before you compare.
On the renting side, the figure to beat is $1,604 a month, or $19,248 a year. Appreciation in Chicago has been running hot recently, near 8.1% a year. The calculator holds to the long-run 3 to 3.5% national average anyway, because leaning on a hot streak to last is a frequent way short-stay buyers get hurt.
Homeowners insurance is modeled at the Illinois average of $1,700 a year; swap in a real quote once you have a specific home.
What makes the rent-vs-buy math different in Chicago
Chicago's price-to-rent ratio is about 20.2: the $389,000 median price divided by $1,604 a month in rent over a year. That is a middling ratio, so the rent-vs-buy call comes down to your down payment, the rate you lock, and how long you stay. That ratio is a useful shortcut, not the whole answer. It points to which side leads at the start, then the full calculation fills in the rest.
Sitting near the national middle, the ratio gives neither side a built-in edge in Chicago. Your down payment, mortgage rate, and rent growth move the break-even year, and the calculator below works it out.
Several local details shape the Chicago decision beyond the ratio. Chicago's real property transfer tax rate is $5.25 per $500 of transfer price. Source. Financial activities employment in the Chicago metro was 303,500 in May 2026. Source.
Home Purchase
Enter details about the home you're considering buying
Renting
Enter details about your rental alternative
Time Horizon & Market
Detailed mode adds 17 more inputs including advanced assumptions.
Buying is cheaper over 7 years
by $31,485
Buying comes out ahead, though the margin is meaningful only if you stay the full term and your assumptions hold roughly true.
The result is robust across small changes to your inputs.
Total cost of buying
$387,138
Average $4,609 per month over 7 years
Total cost of renting
$207,949
Average $2,476 per month over 7 years
Equity Built
$245,691
What you've paid down on the loan principal over 7 years.
Net Sale Proceeds
$211,339
What you'd walk away with after selling, minus closing costs.
Investment Growth
$65,204
What the down payment could grow to if invested instead of used to buy.
This chart shows total dollars spent on each path, month by month. With your inputs and time horizon, renting stays ahead the entire time.
Frequently Asked Questions
By Barron Hansen, Founder · Last reviewed