Illinois, known for its mix of vibrant cities, rural farmlands, and charming small towns, offers a range of affordable living options in 2025. Whether you’re seeking a quiet community, low property taxes, or simply want to stretch your dollar further, several Illinois towns and small cities stand out for their low cost of living. We’ve researched housing costs, median incomes, and local amenities to bring you this list of the ten cheapest places to live in Illinois this year.
1. Decatur
Decatur continues to top affordability lists with its rock-bottom housing prices. The median home price here sits well below the national average, often under $100,000. Utilities, groceries, and healthcare costs are also low compared to both Illinois and national benchmarks. Decatur’s revitalized downtown, with its breweries, restaurants, and historic architecture, gives residents both affordability and lifestyle perks.
2. Peoria
Peoria offers big-city amenities without the high price tag. The cost of living here is around 20% lower than the U.S. average, making it a draw for young professionals, retirees, and families alike. Affordable rentals, excellent healthcare facilities, and access to top employers like Caterpillar make Peoria a balanced choice for those seeking both job opportunities and a low cost of living.
3. Danville
Danville remains one of Illinois’s most affordable towns, especially when it comes to housing. The median home value hovers around $60,000, and renters can easily find apartments for under $700 per month. Located near the Indiana border, Danville offers a charming historic district, local parks, and a strong sense of community. It’s especially appealing to retirees living on fixed incomes.
4. Springfield
Illinois’s state capital isn’t just for history buffs — it’s also one of the state’s most affordable cities. Median home prices are under $130,000, and residents enjoy the benefits of a larger urban center, including hospitals, schools, museums, and government jobs. With Abraham Lincoln’s legacy present throughout the city, Springfield offers a mix of history, culture, and affordability.
5. Rockford
Rockford is one of Illinois’s largest cities, yet its housing costs remain surprisingly low. Median home prices are under $150,000, and renters often pay under $900 per month. While the city has faced economic challenges, it has seen steady improvement with downtown revitalization projects and new businesses. Rockford’s affordable housing, combined with cultural attractions like the Anderson Japanese Gardens and Burpee Museum, make it a hidden gem.
6. East Moline
Located in the Quad Cities region, East Moline offers an attractive balance of affordability and small-town charm. The median home value is under $120,000, and utilities and groceries cost less than the national average. Residents enjoy access to the Mississippi River, scenic parks, and a revitalized downtown. East Moline is perfect for families looking for a safe, affordable environment with Midwestern friendliness.
7. Pontiac
Pontiac is a small town with a big heart — and tiny housing costs. Median home prices here hover around $90,000, and the overall cost of living is roughly 25% below the U.S. average. With Route 66 nostalgia, colorful murals, and a historic courthouse square, Pontiac combines affordability with unique charm. It’s ideal for those seeking a slower pace of life and tight-knit community.
8. Galesburg
Galesburg offers residents affordable living in a historic setting. Median home prices come in at under $100,000, and renters can often find apartments below $700 per month. The city boasts beautiful Victorian architecture, Knox College, and a thriving arts scene. With its walkable downtown and numerous local festivals, Galesburg is a great choice for those wanting affordability and culture.
9. Belleville
Belleville, located just across the Mississippi River from St. Louis, provides a suburban feel at bargain prices. Median home prices here are around $115,000, and the city offers a mix of historic neighborhoods and newer developments. With easy access to big-city jobs in St. Louis, plus local shops, restaurants, and parks, Belleville attracts commuters and families seeking affordable housing without sacrificing amenities.
10. Carbondale
As the home of Southern Illinois University, Carbondale offers low housing costs paired with the energy of a college town. Median home values are under $110,000, and renters can often find apartments for under $800 per month. Carbondale’s cultural events, music scene, and access to the beautiful Shawnee National Forest make it appealing not just to students, but also to retirees and remote workers looking for affordable living surrounded by natural beauty.
Why These Places Stand Out
What makes these Illinois cities and towns particularly affordable? Several key factors contribute to their low cost of living:
Low Housing Costs — Across the board, home prices and rent are far lower in these places compared to national averages.
Reasonable Property Taxes — While Illinois is known for relatively high property taxes, many of these smaller towns and regions have more modest rates.
Affordable Daily Expenses — Groceries, healthcare, and utilities often cost less in these areas, especially compared to Chicago and its suburbs.
Community Investments — Many of these towns are reinvesting in their downtowns, parks, and public spaces, enhancing quality of life while maintaining affordability.
Final Thoughts
For those seeking to live affordably in Illinois in 2025, these ten towns and cities offer excellent value without sacrificing lifestyle. Whether you’re a young professional, retiree, or family looking to stretch your budget, Illinois has many places where your dollar goes further. From the historic charm of Pontiac to the college-town energy of Carbondale, these communities prove that living well doesn’t have to mean spending big. If you’re ready for a fresh start or just want to save more each month, consider one of these affordable Illinois gems for your next move.