Updated January 5, 2026
Cost Comparison 2026

ChicagovsLondon

United States
United Kingdom
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Overall

💰

+17.9%

Chicago is 17.9%more expensive

Rent

🏠

+25.8%

Housing is 25.8% higher

Dining

🍽️

+15.8%

Restaurants 15.8% pricier

Groceries

🛒

-3.8%

Food shopping 3.8% less

Comparing the cost of living between Chicago, United States and London, United Kingdom reveals significant insights for anyone considering relocation or travel in 2026. Our comprehensive analysis shows that Chicago is more expensive than London by approximately 17.9%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

Housing costs in Chicago are lower than in London by 21%. A one-bedroom apartment in Chicago's city center costs around $2,352, while the same in London is approximately £2,362.

Dining out in Chicago offers significant savings compared to London. An inexpensive restaurant meal costs $20 in Chicago versus £20 in London.

Public transportation in Chicago is more affordable, with monthly passes at $105 compared to £180 in London.

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in Chicago can expect to spend approximately $705 per month (excluding rent), while in London, the same lifestyle would cost around £812. For families, these figures increase significantly, with a family of four requiring about $2,466 monthly in Chicago versus £2,841 in London. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

Item
Chicago, United States
London, United Kingdom

🏠 Housing Costs (Monthly Rent)

1BR City Center
$2,352
£2,362
1BR Outside Center
$1,712
£1,713
3BR City Center
$4,250
£3,739

🍽️ Food & Dining

Meal, Inexpensive Restaurant
$20
£20
Meal for 2, Mid-range Restaurant
$100
£80
Cappuccino
$5
£4
Domestic Beer (0.5L)
$7
£6

🛒 Groceries

Milk (1L)
$1
£1
Bread (500g)
$5
£2
Eggs (12)
$7
£4
Cheese (1kg)
$14
£9

🚌 Transportation

One-way Ticket
$3
£4
Monthly Pass
$105
£180
Taxi Start
$3
£4
Gasoline (1L)
$1
£1

💡 Utilities & Internet

Basic Utilities (85m²)
$155
£276
Internet (60 Mbps)
$62
£32
Mobile Minute
$0
£0

Tips for Moving Between Cities

For those considering a move from Chicago to London, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from London to Chicago requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

Chicago

Cost of Living Index78
Rent Index62
Purchasing Power Index105

London

Cost of Living Index92
Rent Index78
Purchasing Power Index95

Frequently Asked Questions

Is Chicago more expensive than London?

Yes, Chicago is approximately 17.9% more expensive than London overall. The biggest differences are in housing and restaurant prices.

How much salary do I need in Chicago compared to London?

To maintain the same standard of living, you would need approximately 1.2x of your London salary when living in Chicago. For example, if you earn $50,000 in London, you'd need about $58,974 in Chicago for a comparable lifestyle.

What are the biggest cost differences between Chicago and London?

The most significant cost difference is in housing. Rent prices differ by approximately 21%, making it a major factor in your budget planning. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

Chicago offers better purchasing power, making it more attractive for those earning in strong currencies. However, London provides lower living costs, which benefits budget-conscious travelers. Consider Chicago if you prioritize earning potential, or London for affordability.

What's a reasonable monthly budget for Chicago vs London?

In Chicago, a single person needs approximately $2,417 per month (including rent), while a family of four requires about $5,416. In London, these figures are £2,525 for singles and £5,754 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between Chicago and London in 2026 shows notable differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in London to maintain your lifestyle from Chicago

Calculate Salary Equivalence

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Last updated: 2026-01-08 • Data sourced from multiple providers