$132K Becomes New 'American Dream' Income For Chicago Residents

CHICAGO, IL — What does it take to live comfortably in the Chicago area?

This is a question on the minds of many Chicago-area residents amid sky-rocketing home, and egg, prices and as their salaries fail to meet past standards of living in the U.S.

Whereas a six-figure income was often categorized as the benchmark household income to allow the average American to achieve that elusive "American Dream," that is not the case anymore. Especially for families living in the most-populated parts of the U.S, including Chicago.

In Chicago, a household income of $132,000 is now needed to live comfortably, according to a new survey from GOBankingRates.com, which is a website focused on analyzing and providing data and news on personal finance, investing, retirement and financial products.

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GOBankingRates.com looked at data from the Bureau of Labor Statistics Consumer Expenditure Survey as well as Zillow, the Federal Reserve and Sterling's Best Places, among other sources, to determine the household incomes needed these days to achieve the American Dream in the 50 most populated U.S. cities

The survey looks at key factors, such as annual grocery and child care costs and monthly mortgage expenses, and the annual cost of living was calculated using average mortgage and expenditure costs and the total cost of living was doubled to find the amount of household income necessary for a comfortable lifestyle.

Here is a closer look at what the survey found:

• Household income needed for the American dream: $131,868
• Total annual cost of living: $65,934
• Grocery costs per year: $8,807
• Average monthly mortgage cost: $1,813
• Child care cost per year: $27,054

And while a $130,000+ household income may feel out-of-reach for many in the Chicago area — where the median household income is $74,744, according to the latest U.S. Census Bureau data — it is still far below many cities in the U.S. Chicago ranked 23rd out of the 50 most populated cities the GOBankingRates.com survey looked at.

Coming in at No. 1. was Washington, D.C., where a household income of $189,306 is needed to achieve the American Dream, according to the GOBankingRates.com survey.

Meanwhile, nine California cities ranked in the top 50, the most from any state. To achieve the American dream in San Francisco (#4), San Jose (#5), Oakland (#6), Los Angeles (#7), Long Beach (#8), San Diego (#10), Sacramento (#13), Fresno (#15) and Bakersfield (#17), residents must earn a minimum of $143,000 annually, according to GOBankingRates.com.

Meanwhile, the Midwest city with the highest annual salary needed to live comfortably was Minneapolis, which came in at #9 on the GOBankingRates.com survey, and where a $152,863 household income is needed to live the American Dream.

Milwaukee followed at #20 on the list, where a household income of $134,193 is needed to live comfortably, but the average monthly mortgage cost was also much lower than other populated cities, including Chicago, at $1,254 per month.

Ray Marek, media outreach manager, told Patch that Chicago stands out as one of the lowest cost of living big cities in the U.S. There are 13 cities on GOBankingRates.com's list that require an income of $150,000 or more.

Marek provided some more specifics related to Chicago:

• The overall cost of living in Chicago is just 6% higher than the national average as of 2025. In 2019, the cost of living here was 18% higher than the national average.
• Groceries are one of the few individual costs that rose comparatively. In 2025, grocery prices in Chicago are 3% lower than the national average --- but they were 6% lower than the national average in 2019.
• Housing costs have actually come down in Chicago compared to other cities. In 2019, housing costs were roughly 21% higher than the national average. In 2025, they are just about level with the national average.

The household income needed to live comfortably can vary in the Chicago suburbs where housing prices can vary greatly depending on school districts, resources and how wealthy that area is. GOBankingrates.com did look at the wealthiest suburbs in the U.S. and found three called the Chicago area home.

Those suburbs include:

• Hinsdale
  • Average household income: $380,479
  • Typical home value: $1,088,871
• Lake Forest
  • Average household income: $284,784
  • Typical home value: $1,097,029
• Wilmette
  • Average household income: $273,718
  • Typical home value: $896,128

You can check out the full survey here.