Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Illinois and North Dakota. Updated for 2026.
North Dakota wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $255K and lower overall costs, North Dakota offers meaningful savings compared to Illinois. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $332/month — that’s $3,984/year or $120K over the life of a 30-year loan. Buying in North Dakota is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in Illinois, you need a household income of approximately $97K/year. In North Dakota, you need $83K/year — less by $14K/year. The $14K difference is meaningful but manageable for dual-income households.
Home prices in Illinois and North Dakota are relatively close, with only a 6% difference ($15K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.
Property taxes are dramatically different: North Dakota charges 0.98% while Illinois charges 2.07%, a gap of 1.09 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $2,499 in North Dakota. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Both states offer down payment assistance for first-time buyers. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while North Dakota's NDHFA FirstHome offers DCA up to $14,000. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: property taxes are the defining difference here. Illinois's 2.07% rate versus North Dakota's 0.98% means North Dakota homeowners save approximately $3,090 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.