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Buying a home in Chicago, Illinois

In Chicago, the median value of owner-occupied homes is $340,000, Cook County's effective property tax rate is 1.91%, a purchase mortgage carried a median $6,862 in total loan costs in 2025, and median gross rent is $1,440 a month.

Data as of : Census ACS 2025 1-year, Census Vintage 2024, FHFA HPI 2026Q2, Census ACS 2020-2024, HMDA 2025, HUD FY 2027. Sources

Checked on against the official sources listed at the bottom of the page.

Chicago home costs, fact by fact

  • Chicago is the first-named city of the Chicago-Naperville-Elgin, IL-IN metropolitan area. (Census Vintage 2024)
  • That metro area is the 3rd largest in the United States, with 9,408,576 residents. (Census Vintage 2024)
  • Chicago itself counts 2,721,308 residents. (Census Vintage 2024)
  • The median value of owner-occupied homes in Chicago is $340,000. (Census ACS 2025 1-year)
  • That figure is what owners estimate their home is worth, not a sale price. (Census ACS 2025 1-year)
  • The FHFA House Price Index shows Illinois prices up 5.6% and Chicago–Naperville–Schaumburg prices up 5.9% between the second quarters of 2025 and 2026. (FHFA HPI 2026Q2)
  • Owners occupy 46% of the occupied homes in Chicago. (Census ACS 2020-2024)
  • Median gross rent in Chicago is $1,440 a month. (Census ACS 2020-2024)
  • Homeowners in Cook County pay a median $6,191 a year in property tax. (Census ACS 2020-2024; Illinois property tax by county)
  • That is 1.91% of the median home value in Cook County, its effective property tax rate. (Census ACS 2020-2024)
  • Home-purchase mortgages in Cook County carried median total loan costs of $6,862 in 2025, across 35,574 loans. (HMDA 2025; Cook County loan costs)
  • Half of those loans fell between $6,085 and $9,200. (HMDA 2025)
  • HUD's Fair Market Rent for a 2-bedroom home is $2,011 a month in its rent area, Chicago-Joliet-Naperville, IL HUD Metro FMR Area. (HUD FY 2027)
  • Illinois taxes real estate transfers at $0.50 per $500 of value, Cook County adds $0.25 per $500, and the City of Chicago adds $5.25 per $500, for a Chicago total of $6.00 per $500 (1.2% of the price). (official sources; Illinois transfer tax)

Calculate for Chicago

If you buy

Illinois state transfer tax

Real Estate Transfer Tax (35 ILCS 200/31-10): $0.50 per $500 of value or fraction of $500. Change the price: the amount is recalculated instantly.

Price$340,000
State transfer tax$340
Share of the price0.1% of the price
Who paysShared by buyer and seller

Default price: the Chicago median value of owner-occupied homes, $340,000 (Census ACS 2025). Rule: Divide the value by $500, round up to the next whole unit, multiply by $0.50. If the deed is subject to a mortgage, the outstanding mortgage balance is left out of the base. Who pays: Per the Cook County Clerk table the seller is liable for the state and county taxes. In Chicago the buyer generally pays the $3.75 city portion and the seller the $1.50 CTA portion. Contracts can allocate differently. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Illinois transfer tax guide · all 50 states.

Local taxes in Chicago, on top of the amount above at $340,000: $3,740. Rates, who pays and sources: transfer tax in Chicago.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Illinois state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Chicago is $340,000, according to the Census Bureau’s 2025 American Community Survey. The FHFA index shows prices in the Chicago–Naperville–Schaumburg area up 5.9% between the second quarters of 2025 and 2026. Chicago’s HomeGrown program offers grants of up to $70,000, according to the City.

How much homes cost in Chicago

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on Illinois home prices explains the method in detail.

AreaMedian value, 2025 (ACS)Margin of error (90%)
City of Chicago$340,000±$6,464
Cook County$335,800±$3,645
Chicago–Naperville–Elgin metro area (IL-IN)$347,700±$2,491
Illinois$294,400±$1,931
United States$371,100±$646

*Source: U.S. Census Bureau, ACS 1-Year Estimates 2025, table B25077.

Are Chicago prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Chicago–Naperville–Schaumburg metro division, published August 25, 2026, shows:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Chicago–Naperville–Schaumburg metro division+5.9%+41.5%
Illinois+5.6%+44.0%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Prices in the Chicago area rose faster than the national index over the past year, after a gain of about two fifths over five years.

Closing costs at the median price

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, escrow and recording fees, title insurance and taxes tied to the transfer. Several of these depend on the loan and on the providers you choose, so there is no single official figure.

We do not estimate a closing-cost total on this page. For the rules, who usually pays each item and a worked example, see our guide to closing costs in Illinois.

Transfer taxes in Chicago

A Chicago purchase can carry a city transfer tax. The City’s Department of Finance describes a real property transfer tax under chapter 3-33 of the Municipal Code, imposed on transfers of title to real property in the city, and says that in general the buyer and the seller each pay a share. The rates, exemptions, and any state or county transfer tax are on our page about transfer tax in Illinois; we do not recalculate them here. Rates and exemptions can change, so confirm the amount for your closing with your closing agent.

Property tax in Chicago

Property tax in Chicago is collected by Cook County. The Cook County Assessor values properties, and the Cook County Treasurer prints and mails the bills, collects payments and distributes the money to about 2,200 taxing bodies, according to the County. Your bill combines the levies of the several taxing bodies that cover your address, so it depends on the property and its location.

We do not give a Chicago rate here. Our Illinois property tax guide explains the principle, exemptions and how to appeal your assessment. To see how property tax can be paid through your monthly mortgage payment, read our guide to escrow accounts.

Condos and buildings of two to four units

Many Chicago homes are condos or small multi-unit buildings. The City and IHDA publish rules that cover them:

  • The City’s TaxSmart program allows homes of one to four units, with separate price limits by number of units. For existing homes outside target areas, the Series 2026 limit is $544,232 for one unit and $696,816 for two units. See our first-time buyer programs page for the full table.
  • IHDA’s Access Home fact sheet says eligible properties include condos, townhomes and two-unit properties, but not manufactured homes. For Cook County, the non-targeted purchase price limit for the other Access programs is $666,354 for one unit and $825,145 for two units (reservations from July 1, 2026).

We found no official City page on the other costs of owning a condo or a two-to-four-unit building, so we do not cover them here. Read the building’s governing documents with your lawyer; see real estate attorneys in Illinois.

Help for Chicago buyers

The City’s HomeGrown grants run from $10,000 to $70,000 depending on household income and the property’s zone, capped at 25% of the price. IHDA’s Access programs give $6,000 to $15,000 in every Illinois county. Cook County says its affordable housing funds are limited to suburban Cook County. Details, limits and a worked example are on our first-time buyer programs page.

Illinois guides for Chicago buyers

Frequently asked questions

What is the median home price in Chicago?

The Census Bureau’s 2025 American Community Survey puts the median value of owner-occupied homes in the city of Chicago at $340,000 (±$6,464). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Chicago going up?

According to the FHFA purchase-only index, prices in the Chicago–Naperville–Schaumburg metro division rose 5.9% between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 41.5%.

Does Chicago have a transfer tax?

Yes. The City’s Department of Finance describes a real property transfer tax on transfers of title to real property in the city, shared in general between buyer and seller. Our transfer tax page has the rates and details.

Who collects property tax in Chicago?

Cook County. The County Assessor values the property, and the County Treasurer mails the bills, collects the payments and distributes them to the taxing bodies. Your bill depends on the taxing bodies that cover your address.

Is there help with a down payment in Chicago?

Yes. The City’s HomeGrown program offers grants of $10,000 to $70,000 depending on income and zone, and IHDA’s Access programs offer $6,000 to $15,000. Our first-time buyer programs page has the conditions.

More Illinois guides

Sources

Questions about buying a home in Chicago

How much is property tax in Chicago?

Homeowners in Cook County pay a median $6,191 a year in property tax, 1.91% of the county median home value of $324,500 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Chicago?

Home-purchase mortgages in Cook County carried median total loan costs of $6,862 in 2025; half of the 35,574 loans fell between $6,085 and $9,200 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Chicago?

Illinois taxes real estate transfers at $0.50 per $500 of value, Cook County adds $0.25 per $500, and the City of Chicago adds $5.25 per $500, for a Chicago total of $6.00 per $500 (1.2% of the price). The seller is named for the state and county taxes.

Is it cheaper to rent or buy in Chicago?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Chicago ($334,100) equals 19.3 years of the median gross rent ($1,440 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Professionals by sector of Chicago

Who licenses each trade in Illinois

Other large cities: see cities in Illinois.

Data sources for the figures above

Illinois · All states · Federal guides