Are you thinking about moving to Peoria, Illinois? Peoria is the county seat of Peoria County and is located in Northwestern Illinois. Peoria has a population of 113,150 and spans 50.55 square miles. Situated on the Illinois River, Peoria offers affordable living, beautiful architecture, and amazing job opportunities.
If you are thinking about settling down in the area, then you may be curious about the Peoria, IL cost of living. Here’s everything you need to know about renting or buying a home in Peoria as well as day-to-day living expenses.
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Peoria IL Cost of Living Index
How much does it cost to live in Peoria IL? There are many ways to measure the cost of living in Peoria IL, but a good place to start is with the Cost of Living Index. The Cost of Living Index, or COLI, compares the cost of services and goods in cities to the national average.
The Cost of Living Index in Peoria IL is 87.4. This means that Peoria is 6.3% more affordable than the Illinois cost of living, which has a COLI of 93.7. Peoria is 12.6% more affordable than the national average of 100. Grocery expenses are 5% below the national average, housing expenses are 25% below the national average, and healthcare expenses are 11% below the national average. The biggest factor contributing to expenses in Peoria is transportation, which is 6% higher than the national average.
Consumer Price Index (CPI)
The Consumer Price Index, or CPI, is published monthly by the Bureau of Labor Statistics and measures the average changes in prices consumers pay for goods and services in an area. Peoria is part of the Midwest area.
The Midwest Consumer Price Index stayed the same over the past two months but is up by 6.8% over the past year. Over the past year, food prices have increased by 11.7%, energy prices have increased by 11%, and gasoline prices have increased by 12.2%.
Consumer Expenditure Survey
The BLS Consumer Expenditure Survey can also help you to understand the cost of living in Peoria, IL. This survey is conducted by the Census Bureau and is used to calculate the CPI. According to the survey, households in the Peoria area spent an average of $62,118 during the 2020/2021 calendar year. This is slightly lower than the national average of $64,187. Here’s a quick breakdown of a typical Peoria, IL, household budget.
- Housing: 32.3% ($20,055), compared to the U.S. average of 34.3%
- Food: 11.9% ($7,407), compared to the U.S. average of 12.2%
- Transportation: 16.5% ($10,223), compared to the U.S. average of 16.2%
- Health care: 9.2% ($5,787), compared to the U.S. average of 8.3%
- Entertainment: 5.7% ($3,523) compared to the U.S. average of 5.1%
- Education: 1.7% (1,049) compared to the U.S. average of 1.9%
- Personal care products and services: 1.2% ($729) compared to the U.S average of 1.1%
Most costs in Peoria, Illinois are right around or below the national average. The transportation costs are higher in Peoria as most people need a car to get around the city. Peoria’s public transportation service CityLink can help you get to many popular places, but a car is preferable when living in Peoria, especially if you need to commute to another city for school or work purposes.
Family Budget in Peoria
How much do you need to make to live in Peoria IL? According to the Economic Policy Institute’s Family Budget Calculator, the average household with two adults and two kids would have an average Peoria cost of living of $7,162 per month ($85,942 per year). Here’s what this budget breaks down to.
- Health care: $1,556
- Child care: $1,328
- Transportation: $1,204
- Taxes: $891
- Housing: $858
- Food: $744
- Other Necessities: $580
For a family with 2 adults and no children, the cost of living drops to $4,301 per month ($51,608 per year). Of course, these numbers can change based on your family size, neighborhood, and lifestyle.
Cost of Household Items, Utilities, Gas & Groceries in Peoria
Can I afford to live in Peoria IL? There are many expenses to take into consideration before moving to Peoria. Here is a breakdown of common expenses in Peoria. You can compare these prices to your current expenses to see if Peoria is an affordable place for you to live.
- Average cost of utilities in Peoria: $147.97
- Beef (1lb): $6.43
- Gallon of milk: $3.48
- Potatoes (1lb): $1.10
- Loaf of bread: $2.06
- Small bottle of beer: $3.87
- Movie ticket: $10.00
- McDonald’s meal: $7.50
- Gallon of gas: $3.20
In addition to these expenses, you can expect to pay an average monthly car insurance premium of $37. If you choose to use public transportation, a 30-day CityLink pass is $40 ($1.00 for a single ride).
Peoria, IL Real Estate Market
Looking for Peoria IL homes for sale? You’re in luck. Peoria is the #1 cheapest place in America to buy a home. The Peoria real estate market is booming, with an average home sale price of $115,000, which comes out to $74 per square foot. This is much lower than the national average of $393,000. On average, homes in Peoria sell after 31 days on the market, and 13.1% of homes sell above the list price.
Some of the top-rated and most affordable neighborhoods in Peoria include:
- West Peoria: Average home price of $88,000
- East Peoria: Average home price of $144,625
- Downtown Peoria: Average home price of $154,000
There are currently 53,890 housing units in Peoria, 61% of them owner occupied and 39% of them renter occupied.
Peoria Rental Market – Average Rent in Peoria IL
Thinking about renting in Peoria IL? According to RentCafe, the average rent in Peoria IL is $1,718 per month. Some of the most affordable neighborhoods to rent in Peoria include Country Meadows, Foxfire, and Garden Point, where rent averages out to $1,584. The most expensive neighborhoods in Peoria include Tierra Del Rio, Vistanica, and Westwing Mountain, where citizens pay an average rent of $1,991.
According to the National Low Income Housing Coalition’s Out of Reach Report, an average full-time worker would have to earn $15.67 per hour ($32,600 per year) to afford a basic 2-bedroom apartment in Peoria without spending more than 30% of their income on housing. This is lower than the Illinois average of $22.80 per hour ($47,434 per year).
According to the 2022 Rental Affordability Report, it is more affordable to buy a house in Peoria rather than to rent one. You can compare renting vs. buying in Peoria IL by calculating the price-to-rent ratio. The higher the ratio, the better the market is for renters. The lower the ratio, the better the market is for buyers. The calculation for the price-to-rent ratio is the median home price divided by the median annual rent.
The median home price in Peoria is $115,000. The median yearly rent is $20,616. When you plug these numbers into the equation, you get a price-to-rent ratio of 5.5. This is considered low and confirms that Peoria is better for buyers.
Average Salary & Household Income in Peoria
The median household income in Peoria is $47,287. This is about two-thirds of the median household income in Illinois ($72,205).
According to PayScale, the average salary in Peoria IL is $65,000, or $18.54 per hour. On January 1, 2023, the minimum wage in Illinois increased from $12.00 to $13.00 per hour. This is higher than 36 U.S. states where the minimum wage still falls under $12.50. Illinois is set to increase its minimum wage to $14.00 per hour on January 1, 2024, and $15.00 per hour on January 1, 2025.
Here’s how much you can expect to earn on average with common jobs in Peoria IL.
- Waiter/Waitress: $24,290
- Medical Assistant: $34,590
- Firefighter: $48,250
- Real Estate Agent: $54,530
- Middle School Teacher: $57,500
- Registered Nurse: $68,630
- Data Scientist: $94,110
- Lawyer: $130,520
Some of the major industries in Peoria are healthcare, agriculture, and real estate. If you are looking for jobs in Peoria, then you can check out some of the top employers in the area, including Caterpillar, OSF Healthcare, UnityPoint Health, Peoria Public Schools, and Bradley University.
Income, Sales, & Property Taxes in Peoria
Illinois Income Tax
Income tax is the tax that is levied directly on individual or business-related income. Illinois has a flat individual state income tax rate of 4.95%. The state also has a 9.50% corporate income tax rate.
Sales Tax in Peoria
Sales tax is a consumption tax imposed by the government on the sale of goods and services. The current total local sales tax rate in Peoria IL is 9.000%.
- Illinois State: 6.250% sales tax
- Peoria County: 1.000% sales tax
- Peoria: 1.750% sales tax
- Total: 9.000% sales tax
Illinois has the 7th highest sales tax rate in the country.
Peoria Property Tax
Property taxes in Peoria are managed on a county level by the local tax assessor’s office. The average county property taxes in Peoria is about 3.76% of residents’ yearly income. The county collects about 2% of a property’s assessed fair market value as property tax.
The median property tax in Peoria IL is $2,385 per year for a home worth a value of $119,000.
Chicago vs. Peoria Cost of Living
Trying to decide between moving to Peoria or Chicago? Here’s a quick comparison of the cost of living in Peoria vs. Chicago.
- Average home price: $115,000 in Peoria vs. $295,500 in Chicago
- Average rent: $1,718 per month in Peoria vs. $2,224 in Chicago
- Average salary: $65,000 in Peoria vs. $65,781 in Chicago
- Average utilities: $147.97 per month in Peoria vs. $164.26 per month in Chicago
- Average monthly expenses: $7,162 per month in Peoria vs. $7,741 per month in Chicago
- Average cost of transportation: $1,204 per month in Peoria vs. $1,041 per month in Chicago
As you can see, it is more affordable to live in Peoria than Chicago. While monthly expenses and salaries are similar, the average home price is 156% higher and monthly rent is 29% higher in Chicago. It is important to remember, however, that Chicago is a much bigger city, with a population of 2,746,388. Because of this large population, it is only natural that the cost of living will be higher.
Overall, Peoria IL is an affordable place to live. The low cost of real estate and high quality of living makes it a great place to buy a home and live comfortably. Give Federal Companies a call today at (800) 747-4100 to discuss your move and get a free quote!