Moving from Chicago to Phoenix: Cost of Living, Housing, Taxes, and Lifestyle Comparison in 2024

When considering a move from Illinois to Arizona, particularly from the Chicago area to Phoenix, it’s essential to compare the various costs of living in each state. Both Illinois and Arizona offer different advantages depending on housing, utilities, transportation, taxes, and general living expenses. This blog will explore these cost differences, real-life scenarios, and similarities in lifestyle, including dining and recreational activities, to help you understand how moving to Arizona could impact your finances and daily life.

Housing Costs: Illinois vs. Arizona

Housing is often the most significant expense, and there are noticeable differences between Illinois and Arizona.

• Chicago, IL:

  • Median home price: $325,000
  • Rent for a 2-bedroom apartment in downtown Chicago: $2,500/month
  • Rent for a 2-bedroom apartment in suburbs like Naperville: $1,800/month
  • Property taxes: Illinois has one of the highest property tax rates in the U.S., averaging 2.27%, meaning an annual property tax bill of around $7,377 for a $325,000 home.

• Phoenix, AZ:

  • Median home price: $450,000
  • Rent for a 2-bedroom apartment in downtown Phoenix: $2,100/month
  • Rent for a 2-bedroom apartment in suburbs like Chandler: $1,800/month
  • Property taxes: Arizona’s property tax rate is much lower at around 0.62%, resulting in an annual tax bill of $2,790 for a $450,000 home.

Real-life example: In Naperville, IL, owning a $400,000 home would cost approximately $9,080 annually in property taxes, whereas in Chandler, AZ, owning a similarly priced home would cost about $2,480 in property taxes annually.

Utilities and Transportation Costs in Phoenix vs Chicago

Utilities vary widely depending on the climate, and in this case, Arizona’s hot summers drive higher electricity usage for air conditioning, while Illinois experiences higher heating costs during winter.

• Chicago, IL:

  • Average electric bill: $120/month
  • Average gas heating bill: $85/month during winter
  • Water and sewer: $50/month
  • Total average utility costs: $315/month

• Phoenix, AZ:

  • Average electric bill: $180/month
  • Lower gas bill (since heating is rarely needed): $30/month
  • Water and sewer: $70/month (higher due to the dry desert climate)
  • Total average utility costs: $340/month

Comparing Taxes: Illinois vs Arizona

Taxes are a crucial factor to consider when comparing the cost of living between Illinois and Arizona, especially income and property taxes.

• Illinois:

  • State income tax: Flat rate of 4.95%
  • Property tax: 2.27%
  • Sales tax: 6.25% state, up to 10.25% with local additions (Chicago)

• Arizona:

  • State income tax: Flat rate of 2.5%
  • Property tax: 0.62%
  • Sales tax: 5.6% state, up to 8.6% with local additions (Phoenix)

Real-Life Cost of Living Scenarios: Chicago vs Phoenix

Let’s explore specific cost comparisons for different lifestyles to provide a clearer picture of the potential savings and differences when moving from Illinois to Arizona.

Scenario 1: Homeownership Comparison for a Family

A family moving from Naperville, IL to Chandler, AZ will see a significant difference in property taxes, despite a slightly higher home price in Arizona.

• Naperville, IL: A $450,000 home with a mortgage payment of $2,395/month and high property taxes adding $851/month results in total monthly costs of $3,561.

• Chandler, AZ: A $500,000 home with a mortgage payment of $2,661/month and lower property taxes of $258/month results in total monthly costs of $3,259.

Savings in Chandler: Despite the higher home price, the family would save about $302/month due to Arizona’s much lower property taxes.

Scenario 2: Renting Comparison for a Single Professional

A single professional moving from Schaumburg, IL to Peoria, AZ will experience lower rent and transportation costs, despite slightly higher utilities in Arizona.

• Schaumburg, IL: Rent costs $1,900/month, with utilities, gas, and insurance adding another $635, for a total of $2,535/month.

• Peoria, AZ: Rent is slightly cheaper at $1,800/month, and lower transportation costs result in total monthly expenses of $2,412.

Savings in Peoria: The professional would save $123/month, primarily due to lower rent and transportation costs.

Scenario 3: Family with Kids – School and Healthcare Costs

A family moving from Aurora, IL to Gilbert, AZ will find savings in housing, healthcare, and daycare costs.

• Aurora, IL: Mortgage and property taxes for a $400,000 home cost $2,856/month, with healthcare and daycare bringing total expenses to $5,156/month.

• Gilbert, AZ: A $450,000 home results in lower housing costs of $2,628/month, and combined with cheaper daycare, total monthly expenses are $4,528.

Savings in Gilbert: The family would save $628/month after moving to Arizona.

Scenario 4: Retirees Downsizing

Retirees moving from Elmhurst, IL to Surprise, AZ will benefit from lower property taxes and utility costs, even when downsizing to a smaller home.

• Elmhurst, IL: Living in a $300,000 home costs $2,818/month when factoring in housing, utilities, and healthcare.

• Surprise, AZ: A similar home in Arizona results in $2,725/month in living expenses, mainly due to lower property taxes.

Savings in Surprise: Retirees could save $93/month by moving to Surprise, AZ.

Pizza: Chicago Icons in Phoenix

For those moving from Chicago to Phoenix, you’ll be pleased to know that some of Chicago's most iconic pizza spots have made their way to Arizona. One of the most notable examples is Giordano’s, famous for its deep-dish pizza, which has several locations in Arizona, including in Phoenix. Chicago transplants can enjoy the same cheesy, stuffed pizza that made Giordano’s a household name in Illinois.

Other Chicago pizza brands, such as Lou Malnati’s, have also opened locations in Arizona, giving Chicagoans a true taste of home. Lou Malnati’s, known for its butter-crust deep-dish pizza, has become a favorite among locals and transplants alike. With these familiar favorites available, you won’t have to miss out on your beloved Chicago pizza after relocating to the Phoenix area.

In addition to these familiar names, Phoenix’s pizza scene includes local favorites like Pizzeria Bianco, which has gained national recognition for its wood-fired, Neapolitan-style pizzas. This blend of Chicago classics and Arizona’s unique pizza culture ensures that even pizza lovers will feel right at home in their new city.

While both Illinois and Arizona offer excellent educational opportunities, they each have unique strengths. Chicago, Illinois is known for its prestigious universities like the University of Chicago and Northwestern University, along with highly regarded public and private K-12 schools. The city offers a range of specialized academic programs, often ranked among the top in the nation. However, it’s important to note that Illinois has faced challenges with funding in some public schools, leading to disparities in educational quality across different areas.

Arizona, on the other hand, has become a hub for innovation in education, particularly in its higher education system. Arizona State University (ASU) is consistently ranked among the most innovative schools in the U.S., offering cutting-edge research and a wide range of academic programs. Arizona has also invested heavily in charter schools, providing families with more choices for high-quality K-12 education. In fact, some Arizona schools have begun outperforming their Illinois counterparts, particularly in suburban areas like Chandler and Gilbert, where public schools are known for academic excellence and high graduation rates.

Overall, families moving from Chicago to cities like Phoenix, Chandler, or Gilbert may find that the lower cost of living in Arizona extends to education, with access to highly rated schools that can rival those in Chicago. Additionally, Arizona's focus on innovative education models and its investment in school infrastructure make it a strong contender for families prioritizing education.

Similarities Between Chicago and Phoenix: Dining and Lifestyle

While the cost of living may differ between Illinois and Arizona, residents moving from the Chicago area to Phoenix will find some similarities in lifestyle, particularly when it comes to dining options, outdoor activities, and entertainment. Both cities offer vibrant, diverse dining scenes and cultural amenities that cater to various tastes and preferences.

• Dining Options: Chicago is known for its deep-dish pizza, gourmet dining, and diverse culinary offerings. Similarly, Phoenix offers a mix of Mexican, Southwestern, and American cuisines, as well as Italian, Mediterranean, and Asian influences. With familiar names like Giordano’s and Lou Malnati’s available in Phoenix, pizza lovers will still enjoy a slice of Chicago in their new city.

• Outdoor Recreation: Both Chicago and Phoenix encourage active lifestyles. Chicago has its lakefront parks and trails, while Phoenix provides year-round outdoor activities with its famous hiking trails in places like Camelback Mountain and South Mountain Park.

• Sports and Entertainment: Chicago’s sports culture is echoed in Phoenix, where teams like the Arizona Cardinals, Phoenix Suns, and Arizona Diamondbacks offer entertainment for sports fans. Additionally, Phoenix is a hub for Major League Baseball’s spring training, hosting the Chicago Cubs at Sloan Park in Mesa and the Chicago White Sox at Camelback Ranch in Glendale. This allows Chicago transplants to enjoy watching their favorite teams during spring training without leaving the Phoenix metro area.

FAQs: Cost of Living Comparison

Is it cheaper to live in Arizona or Illinois?
Yes, overall, Arizona tends to have lower costs of living, particularly in property taxes and housing, while Illinois has higher property taxes and utility costs.

What are the property taxes in Illinois vs Arizona?
Property taxes in Illinois average 2.27%, making them among the highest in the country. In contrast, Arizona’s average property tax rate is much lower at 0.62%.

How do utilities compare between Chicago and Phoenix?
Utility costs are relatively similar, with Phoenix seeing higher electricity bills due to air conditioning needs, while Chicago experiences higher gas heating bills during the winter months.

Is moving to Phoenix from Chicago worth it?
For many, moving from Chicago to Phoenix is financially beneficial, particularly due to lower taxes, transportation costs, and the overall cost of living in Arizona. Additionally, the year-round warm climate and lifestyle amenities in Phoenix can be a major draw.

What are the transportation costs in Arizona vs Illinois?
Gas prices and insurance tend to be lower in Arizona compared to Illinois, especially when factoring in urban commutes and public transit options.

Conclusion

For those moving from the Chicago area to Phoenix, the cost of living offers clear advantages, especially in housing, taxes, and transportation. However, there’s no need to sacrifice the lifestyle you’ve grown accustomed to in Chicago. Whether it’s enjoying unique dining experiences, embracing sports culture, or spending time outdoors, Phoenix offers many of the same lifestyle amenities, often with the added benefit of year-round sunshine. With familiar dining spots like Giordano’s and Lou Malnati’s, and vibrant outdoor and cultural activities, Phoenix can quickly feel like home for former Chicagoans.