Which Illinois Neighborhoods Demand the Highest Living Expenses? A 2025 Cost Breakdown for Home Buyers

Illinois may project a reputation as an affordable Midwest hub, yet certain enclaves scattered across the state present a starkly different reality. Wealthy residential communities here require residents to allocate substantially more resources toward essential expenses—with residents in the state’s priciest neighborhoods spending upward of $5,000 monthly just to cover basic needs.

A comprehensive analysis of Illinois’ most expensive housing markets reveals that when combining mortgage obligations with groceries, utilities, healthcare, and transportation, the financial burden becomes substantial. The research examined 30 Illinois cities with the highest 2025 home values and populations exceeding 2,500 residents, compiling data on average property prices, monthly mortgage payments, and annual necessity expenditures.

Understanding the Data Behind Illinois’ Priciest Housing Markets

The study factored in 2025 average property valuations, monthly mortgage calculations (based on 20% down payment, 30-year fixed rates at 6.30%), and cost-of-living indices for essential categories. By analyzing these components together, researchers determined the true monthly and annual expenses residents face in these high-value neighborhoods.

Top 20 Most Expensive Illinois Communities by Annual Necessity Costs

1. Kenilworth

• Annual necessity costs: $138,632
• Monthly necessity costs: $11,553
• 2025 average home value: $1,896,355
• Monthly mortgage payment: $9,390

2. Winnetka

• Annual necessity costs: $130,246
• Monthly necessity costs: $10,854
• 2025 average home value: $1,759,880
• Monthly mortgage payment: $8,715

3. Glencoe

• Annual necessity costs: $113,908
• Monthly necessity costs: $9,492
• 2025 average home value: $1,488,738
• Monthly mortgage payment: $7,372

4. Hinsdale

• Annual necessity costs: $98,119
• Monthly necessity costs: $8,177
• 2025 average home value: $1,228,133
• Monthly mortgage payment: $6,081

5. Lake Forest

• Annual necessity costs: $92,611
• Monthly necessity costs: $7,718
• 2025 average home value: $1,172,231
• Monthly mortgage payment: $5,805

6. South Barrington

• Annual necessity costs: $88,808
• Monthly necessity costs: $7,401
• 2025 average home value: $1,081,467
• Monthly mortgage payment: $5,355

7. Oak Brook

• Annual necessity costs: $85,087
• Monthly necessity costs: $7,091
• 2025 average home value: $1,014,521
• Monthly mortgage payment: $5,024

8. Barrington Hills

• Annual necessity costs: $84,483
• Monthly necessity costs: $7,040
• 2025 average home value: $985,071
• Monthly mortgage payment: $4,878

9. Wilmette

• Annual necessity costs: $82,448
• Monthly necessity costs: $6,871
• 2025 average home value: $968,347
• Monthly mortgage payment: $4,795

10. Northfield

• Annual necessity costs: $80,247
• Monthly necessity costs: $6,687
• 2025 average home value: $932,314
• Monthly mortgage payment: $4,617

11. Burr Ridge

• Annual necessity costs: $78,196
• Monthly necessity costs: $6,516
• 2025 average home value: $902,643
• Monthly mortgage payment: $4,470

12. Riverwoods

• Annual necessity costs: $77,878
• Monthly necessity costs: $6,490
• 2025 average home value: $929,512
• Monthly mortgage payment: $4,603

13. Long Grove

• Annual necessity costs: $76,726
• Monthly necessity costs: $6,394
• 2025 average home value: $904,299
• Monthly mortgage payment: $4,478

14. River Forest

• Annual necessity costs: $73,761
• Monthly necessity costs: $6,147
• 2025 average home value: $822,837
• Monthly mortgage payment: $4,075

15. Western Springs

• Annual necessity costs: $73,078
• Monthly necessity costs: $6,090
• 2025 average home value: $816,376
• Monthly mortgage payment: $4,043

16. Kildeer

• Annual necessity costs: $72,142
• Monthly necessity costs: $6,012
• 2025 average home value: $824,648
• Monthly mortgage payment: $4,083

17. Inverness

• Annual necessity costs: $71,351
• Monthly necessity costs: $5,946
• 2025 average home value: $782,556
• Monthly mortgage payment: $3,875

18. North Barrington

• Annual necessity costs: $71,003
• Monthly necessity costs: $5,917
• 2025 average home value: $801,283
• Monthly mortgage payment: $3,968

19. Highland Park

• Annual necessity costs: $69,882
• Monthly necessity costs: $5,823
• 2025 average home value: $792,777
• Monthly mortgage payment: $3,926

20. Northbrook

• Annual necessity costs: $69,744
• Monthly necessity costs: $5,812
• 2025 average home value: $760,954
• Monthly mortgage payment: $3,768

What These Numbers Reveal About Illinois Housing Markets

For prospective homebuyers exploring options for a house for sale in Illinois, these figures underscore the significant financial commitment required in premium neighborhoods. The data demonstrates that while the Midwest generally maintains lower housing costs compared to coastal markets, Illinois’ most sought-after communities represent notable exceptions to this regional trend.

The mortgage payments alone consume a substantial portion of monthly budgets in top-tier neighborhoods, with Kenilworth’s $9,390 monthly payment dwarfing the lowest on this list. When layered with property taxes, utilities, insurance, groceries, healthcare, and transportation costs, the total picture becomes considerably more demanding.

Understanding these comprehensive necessity costs—rather than focusing solely on purchase price—provides a more realistic assessment for anyone considering a house for sale in Illinois’ premium markets. This complete financial picture enables buyers to evaluate whether these communities align with their long-term financial planning and lifestyle goals.