7 Most Affordable Places to Live in Illinois

In a nation where housing costs continue to climb, Illinois stands out—not just for its vibrant cities and rich agricultural heritage, but for the remarkably affordable cost of living in many of its communities. With median home prices significantly below the national average in many areas and a diverse economy, the Prairie State offers a compelling destination for families, remote workers, and retirees seeking a life rich in experience rather than expense. However, affordability varies widely across the state, and finding the right community is key to balancing your budget with your lifestyle.

This guide moves past the stereotypes about life in Illinois to provide you with a detailed, data-driven analysis of the most affordable places to live in Illinois as of 2025. We’ve crunched the numbers on housing, utilities, transportation, and more to bring you seven cities and towns where you can achieve financial stability without sacrificing the unique Midwestern experience. If you’re also considering other regions, you might find our guide on the most affordable places to live in Ohio helpful for comparison.

Key Takeaways

1. Widespread Affordability: Illinois offers numerous communities with costs of living 10-20% below the U.S. average, particularly in downstate areas and smaller cities outside the Chicago metropolitan area.
2. Variety of Options: Affordable living in Illinois isn’t limited to remote towns; it includes university cities, manufacturing hubs, and communities with access to major urban centers, offering choices for many kinds of lifestyles.
3. Trade-Offs Exist: The most affordable cities often come with trade-offs, such as fewer job opportunities outside key sectors, population decline in some areas, or limited access to specialized amenities.
4. Beyond the Purchase Price: True affordability includes utility costs, which can be high in areas with extreme temperatures, and transportation expenses, which vary significantly between urban and rural communities.
5. Essential to Research: Economic conditions and school ratings vary dramatically from city to city, making it crucial to research specific neighborhoods rather than relying on statewide generalizations.

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I. Methodology: How We Chose the Most Affordable Places

Our selection of these seven locations is based on a weighted criterion prioritizing key metrics relevant to residents seeking value. Our goal is to identify places that offer a harmonious balance of affordability, access to essentials, and community, not just the lowest price tag.

1. Housing & Affordability (30%): The primary driver for relocation. We’ve examined median home prices, average monthly renting fees, and the overall affordability of the seven locations compared to state averages—using crucial ratios like home-price-to-income to gauge true accessibility in a high-cost environment.
2. Cost of Living (25%): Beyond housing, this metric evaluates the day-to-day expenses that define a budget, including the cost of groceries, utilities, transportation, and healthcare relative to other parts of the state.
3. Access & Infrastructure (20%): Here, affordability can be negated by isolation. This criterion assesses critical access to groceries, healthcare facilities, major employers, and reliable internet and transportation links.
4. Community & Safety (15%): A fundamental need. This assesses crime rates and considers the strength of community engagement, social opportunities,  and amenities that contribute to a high quality of life.
5. Economic Resilience & Opportunity (10%): For long-term viability, we evaluate economic diversity, key industries, and employment trends to ensure that a community is built for its members to have a stable and prosperous future.

Data for this article is compiled from verified 2025 sources, including Zillow, the U.S. Census Bureau, Bureau of Labor Statistics, FBI crime data, and local market reports.

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II. Detailed Community Analysis: Seven Affordable Enclaves

1. Danville: The Historic River City

A. Cost of Living & Housing: Danville offers the lowest cost of living on our list, with incredibly affordable housing options. The city provides some of the most budget-friendly homeownership opportunities in Illinois, with many properties available under $100,000. This makes it ideal for first-time buyers or those looking to maximize their housing budget.

B. Economy & Job Market: The local economy has faced challenges with the decline of manufacturing, but healthcare, education, and retail remain stable employers. The presence of Danville Area Community College provides educational opportunities and some employment stability. The city is working to diversify its economic base through industrial development.

C. Access & Infrastructure: Located near the Indiana border, Danville serves as a regional hub for Vermilion County. The city has essential services such as  a hospital, community college, and major retail outlets. In order to access additional amenities, one has to drive 35 miles into Champaign Urbana. However,  the city provides all basic necessities locally.

D. Quality of Life & Culture: Danville offers a rich history as Abraham Lincoln’s early political base, with several historic sites and museums. The city has parks, recreational facilities, and community events that residents can attend. However, it faces socioeconomic challenges that contribute to its lower safety rating, requiring residents to be selective about the neighborhoods they consider moving to.

2. Decatur: The Soybean Capital

A. Cost of Living & Housing: Decatur provides exceptional value in central Illinois, with a housing market that has remained very affordable. The city offers a wide range of housing options from historic homes to newer developments, all at prices well below state and national averages.

B. Economy & Job Market: As a major agricultural processing center, Decatur is home to mTate & Lyle facilities. Healthcare, education, and manufacturing also contribute significantly to the local economy. While the job market can be specialized, it offers stability in key sectors.

C. Access & Infrastructure: Situated along I-72, Decatur is well-connected to Springfield, Champaign, and Bloomington. The city has a full range of amenities including hospitals, shopping centers, and Millikin University. Its central location makes it easy to access  multiple urban centers while maintaining its affordable character.

D. Quality of Life & Culture: Decatur offers numerous parks and Lake Decatur for recreation, and cultural attractions like the Scovill Zoo and Children’s Museum of Illinois. The city has a strong community spirit with local festivals and events. While it has faced economic transitions, ongoing revitalization efforts are improving quality of life for its residents.

3. Kankakee: The Riverfront Community

A. Cost of Living & Housing: Kankakee offers affordability and is within reasonable commuting distance of Chicago’s southern suburbs. The housing market provides good value, with many well-maintained historic homes and newer developments available at reasonable prices.

B. Economy & Job Market: The local economy includes manufacturing, healthcare, and education sectors. The presence of Riverside Healthcare provides stable employment, while manufacturing facilities offer industrial jobs. The city’s location also allows for commuting opportunities to the Chicago metropolitan area.

C. Access & Infrastructure: Located along I-57, Kankakee provides easy access to Chicago (about 60 miles north) and Champaign to the south. The city has comprehensive amenities, including a hospital system, community college, and retail shopping centers, serving as a hub for Kankakee County.

D. Quality of Life & Culture: Kankakee’s riverfront location provides fun recreational opportunities, and it  has historic architecture and cultural attractions that are wonderful to see. The community hosts festivals and events all throughout the year. While it faces some economic challenges, ongoing development efforts are enhancing the quality of life for Kankakee residents.

4. Rockford: The Forest City

A. Cost of Living & Housing: As Illinois’ third-largest city, Rockford offers urban amenities at surprisingly affordable prices. The housing market provides excellent value, with a wide variety of architectural styles and neighborhoods to choose from at costs well below the prices of homes in comparable cities.

B. Economy & Job Market: Rockford has a diverse economy with strengths in aerospace, manufacturing, healthcare, and logistics. The presence of major employers like Collins Aerospace and Mercyhealth provides stable employment opportunities for Rockford residents and commuters. The city is working to revitalize its downtown area and attract new businesses.

C. Access & Infrastructure: Located along I-90 and I-39, Rockford has excellent transportation connections to Chicago, Milwaukee, and Madison. The city has a commercial airport, comprehensive healthcare facilities, higher education institutions such as Rockford University (known as RU to students and alumni), and all the amenities that are expected in a major metropolitan area.

D. Quality of Life & Culture: Rockford offers extensive cultural amenities including museums, gardens, performing arts venues, and the renowned Anderson Japanese Gardens. The city has numerous parks and recreational facilities. While some neighborhoods face challenges, many areas offer their residents an excellent quality of life and community engagement.

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5. Peoria: The River City

A. Cost of Living & Housing: Peoria offers the amenities of a mid-sized city with very reasonable costs. The housing market provides good value across various neighborhoods, from historic districts near its downtown area to suburban developments, all at prices that remain affordable compared to national averages.

B. Economy & Job Market: Peoria maintains a strong healthcare sector with OSF Healthcare and UnityPoint Health. Bradley University provides educational and employment stability for Peoria residents, and the city is diversifying into areas like biotechnology and advanced manufacturing.

C. Access & Infrastructure: Situated along the Illinois River, Peoria has good transportation connections including I-74 and I-474. The city offers comprehensive amenities including major healthcare facilities, shopping centers, cultural institutions, and recreational opportunities that rival those found in larger cities.

D. Quality of Life & Culture: Peoria boasts a vibrant arts scene, museums, professional theater, and the Peoria Riverfront Museum. The city has extensive park systems and recreational facilities. Its safety rating reflects ongoing community improvement efforts and neighborhood revitalization initiatives.

6. Springfield: The Capital City

A. Cost of Living & Housing: As the state capital, Springfield offers stability and amenities with moderate costs. The housing market provides good value to homeowners, with many historic neighborhoods and newer developments available at prices that remain affordable. The way affordability is measured is related  to the city’s economic stability.

B. Economy & Job Market: Springfield’s economy is anchored by state government employment, providing remarkable stability. Healthcare (with HSHS St. John’s Hospital and Springfield Memorial Health systems) and education (University of Illinois Springfield) are other major sectors. This diverse economic base creates a resilient job market.

C. Access & Infrastructure: Located at the crossroads of I-55 and I-72, Springfield has excellent transportation connections. The city offers all the amenities expected in a capital city, including comprehensive healthcare services, shopping, cultural institutions, and Abraham Lincoln Capital Airport.

D. Quality of Life & Culture: Springfield’s rich heritage, based around the life and achievements of Abraham Lincoln, provides numerous historical sites and museums. Students from all over Illinois come visit his preserved home. The city has a vibrant downtown area, cultural events, and opportunities for recreation. Its strong safety rating and community amenities make it attractive for families and professionals seeking stability.

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7. Bloomington-Normal: The Twin Cities

A. Cost of Living & Housing: Bloomington-Normal offers the highest quality of life on our list with only a modest premium over more affordable options. The housing market provides good value considering the area’s economic strength and amenities, with a range of options to choose from for housing, from historic homes to new developments.

B. Economy & Job Market: The local economy is exceptionally strong, anchored by State Farm Insurance headquarters and Illinois State University. Rivian Automotive’s electric vehicle manufacturing facility has brought additional economic vitality to the city. The diverse economic base creates abundant employment opportunities across multiple sectors.

C. Access & Infrastructure: Located at the junction of I-55, I-74, and I-39, Bloomington-Normal has superb transportation access. The community offers comprehensive amenities for its residents, including major healthcare facilities, shopping centers, institutions of higher education, and Central Illinois Regional Airport.

D. Quality of Life & Culture: The Twin Cities of Bloomington and Normal offer an outstanding quality of life for their residents, with excellent schools, cultural amenities, recreational facilities, and a vibrant downtown scene. The presence of Illinois State University and Illinois Wesleyan University creates an educated, engaged community with strong safety ratings and an infectious community spirit.

III. A Relocation Checklist for Your Illinois Home

Budget for the True Cost: Account for property taxes, which vary significantly across Illinois communities. Factor in utility costs for both heating and cooling, given the state’s frequently fluctuating  climate. Consider transportation costs, especially if commuting to Chicago or other employment centers.

Secure Employment First: Job markets can be localized within Illinois. Secure employment before moving, especially if you’re not in high-demand fields like healthcare, education, or one of the skilled trades that are needed across the state.

Visit in Person: Illinois communities vary dramatically in character and condition. Visit your chosen community to assess neighborhoods, schools, and local amenities firsthand. Pay attention to economic development signs and community vitality.

Research Property Taxes: Illinois has some of the highest property taxes in the nation, but its rates vary significantly by county and municipality. Research specific tax rates in your chosen community, as they significantly impact overall affordability.

Consider Climate Adaptation: Prepare for Illinois’ full range of weather,  from humid summers that shift from sweltering to rainy, to freezing temperatures and days filled with snow.  Factor in costs for both air conditioning and heating, as well as seasonal maintenance like snow removal.

Conclusion: Your Affordable Illinois Future Awaits

From the historic streets of Springfield to the economic vitality of Bloomington-Normal, the overall affordability of these seven communities prove that you can access the Midwestern dream without a premium price tag. Illinois offers a unique opportunity to build a future where your quality of life is matched by the financial wisdom of your chosen home. By carefully considering what each of these affordable enclaves has to offer, you can find the perfect spot to plant your roots and thrive in the Land of Lincoln. For those considering a different state, you might also explore the most affordable places to live in Ohio.

FAQs About the Most Affordable Places to Live in Illinois

1. Is it possible to find a home under $150,000 in Illinois?

Yes, absolutely. Markets like Danville, Decatur, and Kankakee regularly have numerous homes listed below $150,000. These may be older homes that require some updates, but they represent incredible value and opportunity for homeownership.

2. What is the biggest hidden cost of moving to Illinois?

Property taxes and utilities. Illinois has some of the highest property taxes in the nation, though rates vary by location. Utility costs can also be significant given the state’s climate extremes, requiring both heating and cooling throughout the year and throughout the transitional seasons (Spring and Fall).

3. Are these communities good for remote workers?

It varies significantly. Larger towns including Bloomington-Normal, Springfield, and Peoria have excellent high-speed internet infrastructure. More rural communities often  have limited options. Always confirm reliable internet availability at your specific address before moving.

4. How does Illinois’ fiscal situation affect these affordable communities?

The state’s financial challenges have impacted local governments and schools to varying degrees. However, the communities on our list have generally maintained essential services and continue to offer good value to their residents. Research specific local conditions and recent developments in your chosen community.

5. How do I choose between these cities?

Prioritize your needs:

1. For Jobs: Look at Bloomington-Normal or Springfield for the strongest, most diverse employment markets.
2. For Lowest Cost: Consider Danville or Decatur for the most budget-friendly options.
3. For Families: Bloomington-Normal and Springfield offer excellent schools and safety ratings.
4. For Urban Amenities: Rockford and Peoria provide city amenities at affordable prices.
5. For Commuting Access: Kankakee offers reasonable access to Chicago’s southern suburbs.

Always research specific neighborhoods within these cities, as conditions can vary dramatically even within the same community. For more insights on choosing the right neighborhood, check out our guide to the best neighborhoods in Austin, Texas for comparison.

If you’re considering other affordable options across the United States,  you can explore the cheapest places to live in Minnesota or the most affordable places to live in Arkansas. For those interested in understanding the broader context of living in Illinois, our comprehensive guide on the pros and cons of living in Illinois provides valuable insights. When planning your move, don’t forget to consider the essential steps for moving to a new city and our tips for best packing tips for moving to a new city.