One Of The Most Affordable Places To Live In 2025 Is A Suburb Outside Chicago With A $68,000 Annual Cost Of Living

As the cost of living continues to rise across the United States, frugality has become a top concern for many individuals and families. Major cities, once synonymous with affordable living, now top the charts for rent and everyday essentials like groceries and gas. Costs for utilities, transportation, and health care have also surged in recent years, putting additional strain on households. With inflation still affecting households, many are now looking beyond the cities in search of more frugal living.

One place that stands out for its affordability is a quaint Chicago suburb that was just named one of the most affordable places to live in 2025, according to a new Motley Fool study. Located 40 miles southwest of Chicago, Joliet offers economic accessibility without sacrificing urban convenience or quality of life. From lower housing costs to a growing local economy, Joliet is attracting serious attention from budget-conscious individuals. A number of factors combine to make the city affordable, and it's worth considering if you plan to move to the Chicago area.

Joliet delivers affordability on all fronts, including housing, and everyday expenses. According to the study, which examined factors such as household income and cost of living index, Joliet ranks as the seventh-most-affordable city in the U.S. The average cost of living is about $68,000, significantly lower than the national average of $77,280. At the same time, household income in Joliet is $86,054, about 5% higher than the national median.

Other key factors that contribute to the city's affordability, though not listed in the study, include housing and utility costs. According to Payscale, a website that provides compensation and cost-of-living data, housing costs in Joliet are 17% lower than the national average, while utilities are 12% lower. Taken together, these savings mean residents can enjoy a comfortable living while spending less on large budget items. But before you pack your bags for Joliet, there are a few things to consider.

While Joliet's affordability is a big plus, there are a few things to consider before making the move, including commute times and community culture. Although the local economy is strong and growing, the city is largely known as a manufacturing town with most corporate opportunities, unless working remotely, located closer to Chicago. Commuting there isn't overly complex but will take upwards of an hour in each direction either by driving or on the commuter train.

Beyond work and community considerations, Joliet's community culture is also important to know. With over 151,000 residents, per the last Census report, Joliet is one of the largest cities in Illinois and can at times feel like city living, given its defined downtown and public transit system. Additionally, the city has a diverse population with nearly 34% of residents identifying as Hispanic and over 17% as Black or African American. But with its low cost of living, easy access to Chicago, and a diverse population, the suburb can be a smart move for people looking to live frugally.