Cost of living in Chicago burbs?

[RamenAddict]

Originally Posted by Berteau

Can some of you take the 30 seconds to actually read my post. I'm not comparing chicago city to suburb.

The issue here is that there are differences from suburb to suburb that are likely not present in a place like Indy. I lived in suburbs in other cities before and at worst there would be a 1% sales tax difference and a minimal property tax difference. Here the difference can be huge. Many of the less expensive suburbs here have insanely high property taxes, but that is not the case for all of the less expensive suburbs. It depends on a variety of factors. You have some suburbs in two counties (like Hinsdale/Tinley Park) and others like Berwyn that have issues with higher school taxes in one portion of the city because of the way the school districts are run in Illinois.

[flamadiddle]

Originally Posted by Berteau

Can some of you take the 30 seconds to actually read my post. I'm not comparing chicago city to suburb.

Without a lot of details, we can only guess, but someone making $75K in Chicago metro is probably living in a fairly modest home. Let's use a $300K home. I assume you will be living in a similar home/condo/apartment/whatever in Indy. The property tax difference would be around $5K more on a similar home in the Chicago burbs. Surprisingly, you get about the same dwelling for your money in all places listed. Account for slightly higher income/sales tax, tolls, etc. in the Chicago metro and we can just round up to $10K, so to answer your question.

$75K in a nice Chicago burb would be the same as $65K in a nice Indy burb. Negligible differences in Cincy/Milwaukee.

However, if you're negotiating salary for a new gig, do not sell yourself short. You want to make a step up, not sideways and do not fall for the line, the CoL is less here. It's a tight labor market and you're worth it, so stick to your guns and ask for $75K!

[Berteau]

Originally Posted by flamadiddle

Without a lot of details, we can only guess, but someone making $75K in Chicago metro is probably living in a fairly modest home. Let's use a $300K home. I assume you will be living in a similar home/condo/apartment/whatever in Indy. The property tax difference would be around $5K more on a similar home in the Chicago burbs. Surprisingly, you get about the same dwelling for your money in all places listed. Account for slightly higher income/sales tax, tolls, etc. in the Chicago metro and we can just round up to $10K, so to answer your question.

$75K in a nice Chicago burb would be the same as $65K in a nice Indy burb. Negligible differences in Cincy/Milwaukee.

However, if you're negotiating salary for a new gig, do not sell yourself short. You want to make a step up, not sideways and do not fall for the line, the CoL is less here. It's a tight labor market and you're worth it, so stick to your guns and ask for $75K!

No way is that true. Theres almost a 10k difference in property taxes alone. And homes are at least 50% more expensive in Chicagoland. NOt to mention all the other taxes and costs.

[flamadiddle]

Originally Posted by Berteau

No way is that true. Theres almost a 10k difference in property taxes alone. And homes are at least 50% more expensive in Chicagoland. NOt to mention all the other taxes and costs.

Nope, sorry, not true. Sounds like you're trying to justify leaving. I was generous with the $10K savings. Good luck.

[Berteau]

Originally Posted by flamadiddle

Nope, sorry, not true. Sounds like you're trying to justify leaving. I was generous with the $10K savings. Good luck.

Naperville home - $384,900 - $8,300 property taxes. $2640 monthly cost
Similar Indy Suburb Home - $220,000 - $3843 property taxes. $1154 monthly cost.

This is according to Zillow.

Then throw in the 1.5% income tax difference and being taxed on less income and sales tax difference, and tolls, and commute costs. There are cost of living calculators all over the internet proving you aren't even close.

[fusillirob1983]

Originally Posted by Berteau

Naperville home - $384,900 - $8,300 property taxes. $2640 monthly cost
Similar Indy Suburb Home - $220,000 - $3843 property taxes. $1154 monthly cost.

This is according to Zillow.

Then throw in the 1.5% income tax difference and being taxed on less income and sales tax difference, and tolls, and commute costs. There are cost of living calculators all over the internet proving you aren't even close.

I don't know too much about Indy, but I googled "Indianapolis suburbs similar to Naperville" and came up with Carmel.

First, I don't think a $384k home in Naperville is at all similar to a $220k home in Carmel.

Search - Naperville
https://www.redfin.com/city/29501/IL....2373205555253

Example - Naperville
https://www.redfin.com/IL/Naperville.../home/17587038

Search - Carmel
https://www.redfin.com/city/2672/IN/...7097:-86.22255

Example- Carmel
https://www.redfin.com/IN/Carmel/102.../home/67061338

Second, I think the calculations are off. Take the Applegate home above. Even with property taxes of $8.9k and today's interest rate of approx. 3.7% with good credit and a $385k sale price, your monthly payment is $2,253.

The payment on the Carmel sample home I provided, which I highly doubt a $385k budget Naperville-type buyer would be in the market for, is calculated at $1,338 when using a 3.7% interest rate.


Here's a Carmel home that at least looks more similar to the $385k Naperville home on Applegate. So it's still a fair amount cheaper at $1,658 per month.
https://www.redfin.com/IN/Carmel/120...home/107122586

Here's another, approx $1,615 per month.

https://www.redfin.com/IN/Carmel/130.../home/82365033

So it seems like housing costs an additional ~$600 or so per month in Naperville vs. Carmel for that range of homes.

I have no idea what the job market and current salaries are like in Indy, but I can definitely say that in Chicago, my $75k job in 2013 would probably pay closer to $90k today. I know in accounting/finance at least you can probably leave public accounting after 2-3 years and someone will throw $80k at you for barely knowing anything.

[flamadiddle]

Originally Posted by Berteau

Naperville home - $384,900 - $8,300 property taxes. $2640 monthly cost
Similar Indy Suburb Home - $220,000 - $3843 property taxes. $1154 monthly cost.

This is according to Zillow.

Then throw in the 1.5% income tax difference and being taxed on less income and sales tax difference, and tolls, and commute costs. There are cost of living calculators all over the internet proving you aren't even close.

Sounds like you already have your mind set?

As noted, without details of your specific situation, we can only generalize. Zillow and the calculators average in many factors and the Chicago metro has a lot of very exclusive/pricey suburbs. Also, Chicago is an Alpha city and Indy/Cincy are nowhere near that level so that's another factor to consider. The only Indy suburbs remotely close to Naperville are Carmel/Zionsville, but that's a real stretch. I'm not biased against Indy or Cincy, we looked closely at both before moving back to Chicago, even put an offer on a home in Zionsville, but couldn't come to agreement on price. I won't even discuss Wisconsin because their property taxes are almost as high as Illinois so why bother?

You validated my numbers above with your comparison. Property taxes are $5K apart, not the $10K you stated. And homes prices in Naperville are comparable to similar homes in Carmel/Zionsville.

With that said, I stand by my numbers. You will save money by moving to any of the three cities you mentioned, but what I'm trying to convey is;

A. You need to look at your situation at a more granular level.

B. Temper your expectations. At your salary level, you're not going to save as much as you think.

C. Do not sell yourself short on salary negotiations.

Best of luck to you.

[flamadiddle]

Here you go, a CoL calculator that lets you pick suburbs.

https://smartasset.com/mortgage/cost...ing-calculator

This is what it says for Naperville, IL vs. Carmel, IN. (Same results for Zionsville).

The cost of living in Carmel, IN is 11% LOWER
You need to earn $67,079 in Carmel, IN to have the same standard of living that $75,000 provides in Naperville, IL.