Cost to Buy vs Rent in 10 Illinois Cities

While Chicago and surrounding areas can be expensive, the state (and parts of the city) still offer solid options for your homebuying dollar.

In three out of 10 cities analyzed, it’s cheaper to buy than to rent.

Our assumptions include paying 5% down plus the estimated cost of private mortgage insurance (PMI), property taxes, and homeowner’s insurance. See the full methodology at the end of this article.

Homebuyers who are looking to break into the housing market without breaking the bank should look into these affordable Illinois cities.

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Monthly Cost Difference to Buy

1. Chicago +$258
2. Aurora -$11
3. Rockford -$70
4. Naperville +$1,846
5. Joliet +$119
6. Springfield +$209
7. Peoria +$50
8. Champaign +$385
9. Bloomington +$298
10. Decatur -$49

1. Chicago

While Chicago certainly has its expensive areas, the downtown core offers early twentieth century homes at affordable prices. Many of these homes are updated with modern amenities. Being a homeowner here won’t cost dramatically more than renting.

2. Aurora

A Chicago suburb, Aurora offers newer, more spacious homes mixed with older housing stock. Many homes can be had for about the same monthly cost as renting.

3. Rockford

One of the more affordable cities on our list, Rockford homes cost around $1,500 per month whether buying or renting. In fact, owning a home is slightly cheaper than renting in this town 90 minutes west of Chicago.

4. Naperville

Homes in this Chicago suburb can get spendy. The average price is over half a million dollars. Adding to the cost are Naperville’s property taxes at nearly $1,000 per month on average – about two to three times the average for other cities on our list. In all, it will cost you about $1,800 more per month to buy a home here versus renting.

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5. Joliet

Joliet homes can be a bargain, such as a 5 bed, 2 bath, 1,800-square-foot home currently listed for $250,000. Many of the homes are more than 100 years old, so finding one with good bones that has been kept up will be key to landing a value.

6. Springfield

The Illinois capital lies between Chicago and St. Louis, Missouri and offers good deals for buyers and renters. Renting has the slight advantage, though, costing about $200 less per month.

7. Peoria

This midwest city of around 100,000 offers some of the lowest home prices in Illinois. On the banks of the Illinois river and Peoria Lake, fishing and boating enthusiasts may find this is an affordable paradise.

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8. Champaign

This college town is home to The University of Illinois Urbana-Champaign, contributing to the area’s diversity. According to Livability, 11,000 international students from 110 countries bring cultural flavor like few other midwest cities.

9. Bloomington

While Bloomington home prices are affordable, renting here costs about $300 less per month than buying.

10. Decatur

Decatur offers the lowest home prices on our list at around $85,000 for the typical house. A bonus: buying a house here will cost less than renting one.

Get Pre-Approved for Your Illinois Home

Homes in Illinois are in a range of prices affordable to just about any budget. See what home price you qualify for by requesting your pre-approval from a reputable lender.

Methodology

To compare the costs of buying versus renting in 10 Illinois cities, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per rates from mortgage insurance provider MGIC. Then we added annual homeowner’s insurance premiums as reported by Policygenius and property tax data from Roofstock and the U.S. Census Bureau. We assumed zero HOA dues. We compared this total housing payment with rent data from the Zillow Observed Rent Index (ZORI) Smoothed Single Family Residence Time Series except when no data was available, in which case we searched for current rent statistics on Zillow’s site. City selection was based on the highest population except where it made sense to bypass a suburb of a major city to highlight one in a different area.