Is it cheaper to live in Albuquerque or Chicago?

Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 28% below Chicago, IL's $1,440, mainly because of rent.

How much more do you need to earn to live in Albuquerque than in Chicago?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $50,000 in Chicago.

Which has lower taxes, Albuquerque or Chicago?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Chicago under Illinois's (a top state income tax rate of 4.95% and a 6.25% state sales tax).

Albuquerque vs Chicago Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Chicago

Illinois

$1,440/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Albuquerque, NM versus $1,440 in Chicago, IL. Overall, Albuquerque, NM is roughly 28% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $75,134 in Chicago, IL — about 13% higher in Chicago, IL. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax.

Albuquerque, NM

Chicago, IL

Rent

Studio

$797

$1,186

+49% in Chicago, IL

1 Bedroom

$889

$1,258

+42% in Chicago, IL

2 Bedroom

$1,140

$1,406

+23% in Chicago, IL

3 Bedroom

$1,459

$1,554

+7% in Chicago, IL

Buying a Home

Median Home Value

$266,700

$315,200

+18% in Chicago, IL

Income

Median Household Income

$65,604

$75,134

+15% in Chicago, IL

Metro Median Wage (annual)

$48,060

$54,720

+14% in Chicago, IL

People & Lifestyle

Median Age

38.7 yr

35.7 yr

+3.0 yr in Albuquerque, NM

Homeownership

61.5%

45.5%

+16.0 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

43.3%

+4.6 pp in Chicago, IL

Avg Commute

22.2 min

33.5 min

+11.3 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

1,193.2

539.8

+55% in Albuquerque, NM

Property Crime

4,766.2

3,489.9

+27% in Albuquerque, NM

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.2°F

52.7°F

+4.5°F in Albuquerque, NM

Annual Precipitation

9.4 in

38.0 in

+28.5 in in Chicago, IL

Gas

Regular Gasoline

$3.99/gal

$4.82/gal

+21% in Chicago, IL

Area: Gulf Coast (PADD 3) vs Chicago.

Public Transit

Base Fare (one-way)

Free

$2.50

Adult base one-way fare — ABQ RIDE vs CTA (2026).

Utilities

Electricity (¢/kWh)

14.8

18.9

+27% in Chicago, IL

Natural Gas ($/MCF)

$11.90

$12.10

+2% in Chicago, IL

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.37

$4.14

+5% in Albuquerque, NM

Bread (lb)

$2.10

$1.79

+15% in Albuquerque, NM

Eggs (doz)

$2.25

$3.63

+61% in Chicago, IL

Ground Beef (lb)

$7.23

$6.97

+4% in Albuquerque, NM

Chicken (lb)

$2.14

$2.15

+1% in Chicago, IL

Bananas (lb)

$0.74

$0.63

+15% in Albuquerque, NM

Average prices — West vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (NM / IL)

4.875%

6.25%

+1.4 pp in IL

Income Tax (top rate)

5.90%

4.95%

+1.0 pp in NM

Albuquerque vs Chicago — FAQ

Is it cheaper to live in Albuquerque or Chicago?: Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 28% below Chicago, IL's $1,440, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Chicago?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $50,000 in Chicago.
Which has lower taxes, Albuquerque or Chicago?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Chicago under Illinois's (a top state income tax rate of 4.95% and a 6.25% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).