Cost of Living in Paw Paw, IL

With a cost of living index of 72, Paw Paw, IL is one of the most affordable cities in the country. Living here is 28% cheaper than the national average and 8% below the Illinois state average of 80. Paw Paw is a small community of 911 residents.

Housing costs are the biggest factor in Paw Paw's cost of living. The median monthly rent is $847 (36% below the US median of $1,319), and the median home value sits at $151,100 (50% below the national median of $304,900). At current prices, the median home costs roughly 2.4x the median household income — well within traditional affordability guidelines.

The median household income in Paw Paw is $63,833, which is 15% lower than the national median of $75,149. Residents spend roughly 16% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Paw Paw. The area sees an average annual temperature of 47.8°F, with summers averaging 70°F and winters around 24°F. Annual rainfall totals 37.4 inches spread over roughly 131 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.