The headline number: Peoria's overall cost of living runs roughly 10 to 15 percent below the national average, and housing is the reason. Typical home values land in the $130,000 to $150,000 range, the median rent is around $1,000 a month, and your everyday bills, groceries and utilities, run close to, or slightly better than, the national norm. Here is the full breakdown, including the tax reality you should budget for.
Most cost-of-living indexes agree on the shape of the picture even when their exact numbers differ: Peoria comes in meaningfully below the national average, with the gap driven almost entirely by housing. If you are comparing Peoria to another city, the sections below give you the pieces that actually move your monthly budget.
Housing: where the savings are
Typical home values in Peoria land roughly in the $130,000 to $150,000 range by most measures: Zillow's home value index for the city sits closer to $116,000, while the median sale price runs near $148,000, up modestly year over year. The county overall runs higher, at a $190,000 median for August 2026, because the suburban towns pull it up. Either way, that is a nationally unusual affordability level, and it is the reason Peoria routinely shows up on lists of the most affordable mid-sized metros in the country.
Renting
The median rent in Peoria is around $1,000 a month, with typical one- and two-bedroom units ranging from roughly $900 to $1,100 depending on the source and the building. That is well below the national average rent, and it is one of the few markets where the mortgage on a median-priced home can beat the rent on a comparable place, which I cover in more detail in the rent versus buy comparison.
Utilities and groceries
Utilities run a little above the national average, roughly 3 to 5 percent higher, mostly because summers are humid and winters are cold, so heating and cooling bills are real. Groceries run slightly below the national average, about 1 to 3 percent cheaper. Neither category is dramatic enough to change the overall picture, but I include them because the small monthly items are what "cost of living" actually means day to day.
Taxes: the honest catch
Property taxes are the one place Peoria, and Illinois generally, does not look cheap. Illinois has some of the highest effective property tax rates in the nation, and Peoria County's effective rate runs around 2.2 to 2.6 percent, with a typical annual bill near $3,500. That is dramatically higher than the national average of around 1 percent. The good news is the math still works because purchase prices are low, but taxes belong in every monthly payment estimate, and I always run them explicitly for buyers so there are no closing-table surprises.
Illinois also taxes income at a flat state rate, so your rate does not climb with your earnings the way it does in some other states, and the state sales tax is moderate. For most households, the housing savings dwarf the tax difference, but it is fair to know about it before you move.
Overall cost of living
10-15% below
vs. U.S. average
Typical home values
~$130K-$150K
median sale near $148K
Median rent
~$1,000/mo
typical range ~$900-$1,100
Utilities
~3-5% above
heating and AC seasons
Groceries
~1-3% below
vs. U.S. average
Property taxes
~2.2-2.6%
effective rate, Peoria County
How it compares to Texas and California
For out-of-state movers, the comparison is dramatic. California's typical home value is around $775,000, and even Texas, which most people think of as affordable, sits near $303,000. A median-priced Peoria home in the $148,000 range is roughly a fifth of California's typical price and about half of Texas's. Add lower mortgage payments, and the monthly difference for a family buying the same style of house can be thousands of dollars, which frees up room for travel, savings, or a bigger property.
In my buyer consultation, I build a full monthly-payment picture that includes principal, interest, property taxes, insurance, and utilities, so you compare cities on your real out-of-pocket number, not a headline index.
Affordability is only useful if it points at the right home, and that changes with the market every month. Ask me about current Peoria listings in your price range and I will send you current inventory, real numbers, and neighborhoods that fit your budget. Call me at 309-361-4592 or use the contact page. I serve buyers across Peoria and Central Illinois with Keller Williams Premier Realty, and I will happily run the affordability math for your exact situation before you make the move.
