Finding the perfect apartment in the vibrant city of Chicago is just the first step in your housing journey. As you settle into your new home, it’s crucial to understand the intricacies of budgeting beyond your monthly rent. 

In this post, we’ll explore the cost of utilities in Chicago and address common questions like, “Are utilities included in apartment rent?” and “What’s the average electric bill in Chicago?”

Estimating the Cost of Utilities in Chicago

Let’s begin by breaking down the most common utility bills for renters in the Windy City:

• Electricity: If you’ve asked, “How much is electricity per month for an apartment?” note that the average Chicago renter currently spends about $158 monthly. 
• Water: The average water bill every month is close to $40. Keep in mind, though, that landlords typically cover this cost.
• Gas: Tenants can expect to pay around $100 monthly, the average apartment gas bill. However, this number fluctuates significantly depending on the season. Your gas bill will rise as the temperature falls, and vice versa.
• Internet: The average internet bill for one person (60Mbps) in Chicago is $61.15. The internet speed and provider both impact this final number. Regardless, renters often are responsible for paying for this service.

Keep in mind the cost of utilities in Chicago varies drastically from renter to renter and is also based on the lease agreement. Some apartments offer pre-bundled utility deals, so just be sure to know what you’re expected to cover before signing the lease.

Considering Additional Costs

Beyond the basic costs of utilities in Chicago, here’s a look at other fees that can fall on renters:

• Parking: Apartment parking almost always comes at a cost in the Windy City, and many renters can end up paying a premium to a secure spot for their vehicle. So, if you’ve pondered “how much does it cost to park at an apartment,” anticipate anywhere between $150 to $300 monthly. The price often depends on the type of parking (covered parking, reserved spot, metered parking, etc.).
• Renters insurance: While renters insurance isn’t mandated by Illinois law, your landlord or management company may require a renters policy. Regardless, renters insurance is a wise move and provides coverage for personal property, liability protection, and additional living expenses. This coverage runs about $10 per month in Chicago.
• Pet fees: If you have a furry friend moving in with you, expect to pay extra to have them in the apartment (as long as your building is pet-friendly). Pet owners should budget an additional $300-$600 one-time, non-refundable pet fee or $30-$60 monthly per animal.

Implementing Budgeting Strategies

To stay on top of utility costs, consider adopting a budgeting strategy. 

Numerous apps can help you keep track of your expenses, ensuring that you stay within your budget. Apps like Mint, YNAB (You Need A Budget), or PocketGuard allow you to monitor your spending, set financial goals, and receive alerts for upcoming bills. Implementing these tools into your routine can provide peace of mind and financial stability.

Along with budgeting, timely payments of bills are essential to maintaining a healthy financial profile. Late fees can quickly add up and strain your budget. Set up automatic payments or create calendar reminders to ensure you never miss a due date. By staying on top of your bills, you avoid extra expenses and establish a responsible and reliable reputation with your utility providers.

Understanding the cost of utilities in Chicago and responsibly managing your budget beyond rent is key to a stress-free living experience. 

Partnering with an experienced real estate professional when seeking answers and hunting for your dream apartment is also beneficial. Connect with Luxury Living today!

If you’ve asked yourself, “How much should I save for an apartment?” you’ve come to the right place. Preparing financially is essential before taking the plunge and beginning the apartment hunt. In this post, we’ll examine vital considerations so that you can set yourself up for success and secure your dream apartment.

How Much to Save for an Apartment

Prior to signing an apartment lease, it’s crucial to have enough for rent, savings, and additional costs.

Rent can vary drastically depending on many factors, including your apartment’s location, size, and construction. Right now, the average monthly cost for a Chicago apartment is $2,309, and the average apartment size is 750 square feet.

When it comes to having enough in your savings account, the general recommendation is to have three to six months’ worth of expenses.

Here are additional upfront costs that you may need to dish out during the moving process:

• Moving expenses: Whether you plan on hiring professional movers or renting a U-Haul, you’ll probably need to budget for transporting your goods to your new digs.
• Furnishings: These costs also vary by situation, but you’ll want to account for what items you need to purchase to ensure your apartment is move-in ready. This might include furniture, appliances, or decor.
• First and last month’s rent: Landlords or property managers commonly require new tenants to pay the first and last month’s rent before moving in.
• Security deposit: Often, renters are also asked to put down a deposit as a form of financial protection for the landlord in case the tenant causes damage to the property beyond normal wear and tear or fails to fulfill other financial obligations specified in the lease agreement.
• Utility bills: When obtaining an apartment, your lease agreement will lay out the utilities that the tenant is expected to pay. This often includes electricity, gas, Internet, water, and sewer/garbage.
• Other living expenses: As you prepare your budget, don’t forget costs beyond your apartment. These can include groceries, activities, fitness, transportation, and medical expenses.

Rental Market Trends in 2023

In an unprecedented development spanning two decades, Chicago has witnessed the highest growth in apartment rents among major rental markets across the country over the past three quarters, as indicated by CoStar Risk Analytics.

The Windy City has experienced a 3.6 percent increase in rental rates since August 2022, surpassing the national average of 1.2 percent and outpacing the figures observed in more than 20 major metropolitan areas. 

Expectations for 2024

The CoStar Risk Analytics national forecast suggests that Chicago apartment rental prices can expect significant hikes in early 2024. 

With this prediction in mind, consider renting before the new year. Also, while winter may not present ideal moving conditions logistically, this time of year often means lower rental prices.

Now that we’ve helped answer, “How much should I save for an apartment?” we hope you feel equipped to begin the saving journey.

If you’re ready to start exploring apartments, get in touch with our knowledgeable team of brokers today!

If you find yourself weighing the pros and cons of downsizing to an apartment, the costs associated with this transition is likely a factor you’ve been considering.

Downsizing to an apartment in Chicago offers numerous financial advantages, making it an attractive option for those looking to achieve their financial goals.

Whether you’re aiming to save for retirement or reduce debt, downsizing can provide a favorable financial option.

The Top 5 Financial Benefits of Downsizing

1. Reduced Housing Costs: One of the most significant financial benefits of downsizing to an apartment is the immediate reduction in housing costs. Apartments typically have lower monthly rents compared to homes when you factor in things like monthly mortgage and HOA dues, interest rates, ongoing maintenance, and property taxes. By choosing in an apartment, you can save a considerable amount on your housing expenses, allowing you to allocate those savings toward other financial priorities.
2. Lower Utility Bills and Maintenance Expenses: Downsizing to an apartment also means a decrease in utility bills and maintenance expenses. Smaller living spaces generally require less energy to heat or cool, resulting in lower utility costs. Additionally, apartments often include maintenance services provided by the building management, reducing the need for costly repairs and upkeep that homeowners would have to handle themselves. These savings can significantly impact your monthly budget and contribute to your overall financial well-being.
3. No Property Taxes: Owning a home typically means you have to pay property taxes. By downsizing to an apartment, you can benefit from not having this added cost, as this is generally covered by the building. The savings from this cost can help alleviate financial strain and provide more disposable income to allocate toward savings or other financial goals.
4. Access to Amenities: Another financial benefit of downsizing to an apartment is the access to amenities that would otherwise not be included or would require additional costs. Many apartment buildings in Chicago offer amenities such as gyms, pools, outdoor spaces, and communal areas for residents to enjoy. By downsizing, you can take advantage of these amenities without incurring the expenses associated with maintaining them in a larger home. This not only enhances your quality of life, but also helps save money on gym memberships or recreational activities outside of your home.
5. Increased Cash Flow: Downsizing to an apartment can provide a significant boost to your monthly cash flow. With reduced housing and maintenance costs, lower utility bills, and no property taxes, you’ll have more disposable income to allocate towards your financial goals. Whether you’re saving for retirement, paying off debt, or investing in other ventures, the increased cash flow resulting from downsizing can accelerate your progress and provide greater financial freedom.

Downsizing to an apartment in Chicago offers compelling financial benefits for individuals and families looking to achieve their financial goals. Consider the potential financial advantages of downsizing and explore the diverse range of apartments available in Chicago to make a smart and financially rewarding decision for your future.

From tips on decluttering your home before moving to insight on the right time to downsize, Luxury Living is here to help answer any questions you may have about your transition. We are a complimentary apartment-finding service who have helped thousands of downsizers find their new home.

If you’re ready to begin your Chicago apartment hunt, click the link below to explore on your own or contact us today to get started!

Are you comparing city lifestyles? Consider the cost of living in Chicago vs. New York.

The Cost of Living in Chicago vs. New York

While the Windy City and the Big Apple both offer a vibrant urban experience, a Chicago lifestyle is less expensive across the board. This means that you will get more for your money here in Chicago.

Overall, Chicago is 42.9% cheaper than New York. While median home cost is the most significant cost factor in the cost of living difference, other variables also account for this difference.

Buying a home in Chicago will run you 66% less in Chicago than New York. Renting an apartment will also take less from your bank account. The median monthly rent for a 1-bedroom is $2,800 in Chicago compared to $4,250 per month in New York.

We’ve compared the price of one-bedroom rental units in similar Chicago and New York neighborhoods:

• The Loop ($2,720) vs. the Financial District ($4,550)
• West Loop ($2,850) vs. Downtown Brooklyn ($4,213)
• River North ($3,198) vs. Midtown ($4,375)
• Lincoln Park ($3,361) vs. West Village ($4,593)
• South Loop ($2,514) vs. Long Island City ($4,077)

Not only can you find more affordable rent in Chicago, but your money can also stretch to afford more luxurious living. Residing in Chicago provides more room in your budget for spacious apartments, extra amenities, and upgraded finishes.

Daily life, in general, is more affordable in Chi-town as well. Additional living expenses such as utilities, parking, transportation, and groceries all cost around 15 to 20 percent cheaper here than in New York.

Along with a lower cost of living, Chicago also boasts an impressive selection of free activities for community members throughout the city. 

During the warm months, residents take advantage of the public parks, trails, the Chicago Riverwalk, Lincoln Park Zoo, and lakefront without spending a dime. Year-round locals can also access various indoor museums and conservatories at no cost.

When comparing the cost of living in Chicago vs. New York, you’ll quickly realize that while these cities may offer similar experiences, New York comes at a much steeper price.

If you want to maximize your finances and find a luxury apartment in Chicago, connect with us today! We have experienced team members who are eager and ready to help you find the best home at the best price.

Editor’s Note: This post was originally published in May 2021 and has been updated for accuracy and comprehensiveness.

The vibrant and bustling city of Chicago, known for its diverse neighborhoods and rich culture, offers a wide range of housing options. If you’re considering renting a 2 bedroom apartment in the Windy City, it’s essential to create a budget that takes into account various factors, including rent, utilities, and the cost of living.

In this blog, we will explore the average utility bills for a 2 bedroom apartment, the average rent for such apartments in Chicago, and the general cost of living in downtown Chicago to help you plan your budget effectively.

Average Rent for a 2 Bedroom Apartment in Chicago

Before diving into budgeting specifics, let’s address the average rent for a 2 bedroom apartment in Chicago.

Rental prices can vary depending on the neighborhood, amenities, and proximity to downtown. On average, you can expect to pay around $3,500 to $5,000 per month for a 2 bedroom apartment in the city. Naturally, popular neighborhoods like River North, Streeterville, and Old Town tend to have higher rental prices compared to areas further from downtown:

• River North: $4,936
• West Loop: $4,437
• The Loop: $4,339
• Streeterville: $4,871
• South Loop: $3,758
• Lincoln Park: $4,588
• Old Town: $4,774

Average Utility Bills for a 2 Bedroom Apartment

When planning your budget, it’s crucial to consider the average utility bills associated with a 2 bedroom apartment in Chicago. These expenses typically include electricity, gas, water, heating, and internet. Keep in mind that usage and rates may vary based on personal habits, apartment size, and seasonality.

On average, residents in a 2 bedroom apartment in Chicago can expect to pay:

1. Electricity: The average monthly electricity bill can range from $50 to $100, depending on your usage and the efficiency of your appliances.
2. Gas: Gas bills for heating and cooking generally amount to around $30 to $70 per month, although costs may be higher during colder winter months.
3. Water: Water bills in Chicago typically range from $30 to $70 per month, but you most likely won’t have to worry about this cost in your apartment.
4. Internet: High-speed internet services in Chicago cost approximately $50 to $80 per month, depending on the provider and plan you choose.

General Cost of Living in Downtown Chicago

Apart from rent and utilities, it’s important to consider the overall cost of living in downtown Chicago. The cost of groceries, dining out, transportation, entertainment, and healthcare can impact your monthly budget.

1. Groceries: On average, a couple can expect to spend around $400 to $600 per month on groceries in downtown Chicago. Prices may vary depending on dietary preferences and shopping habits.
2. Dining Out: Chicago is renowned for its culinary scene, offering a plethora of dining options. Eating out at restaurants can range from $15 to $75 per person, depending on the establishment and meal choice.
3. Transportation: Chicago has an excellent public transportation system, including buses and trains (CTA). A monthly unlimited pass for public transportation costs around $105. If you own a car, you should budget for parking fees, gas, and potential tolls.
4. Entertainment: Chicago offers a wide range of entertainment options, from museums and theaters to concerts and sports events. Depending on your preferences, budgeting around $100 to $200 per month for entertainment is a reasonable estimate.
5. Healthcare: Healthcare costs can vary depending on insurance coverage. It is advisable to budget for health insurance premiums, co-pays, and any out-of-pocket expenses.

When budgeting for a 2 bedroom apartment in downtown Chicago, it’s important to consider the average rent, utility bills, and general cost of living. By carefully planning and monitoring your expenses, you can allocate your financial resources effectively while enjoying the vibrant city.

With proper budgeting, you can find a comfortable 2 bedroom apartment in Chicago that fits within your financial goals. Explore available 2-bedroom apartments for rent in Chicago below!