If you live in the Chicago area you may not have a choice.
Check the building codes for attached garages in Chicago. I believe you will need 5/8 gypsum board for the ceiling if a room is above the garage and at least 1/2" gypsum for all the walls. You cannot use OSB, plywood or other type material to enclose the interior structure of an attached garage. You will also need to fire seal caulk openings in the ceiling for electrical boxes and other openings.
This is a fire safety issue. If you do it wrong, when it is time to sell the home, you will be paying someone to do it right. Home inspectors know to look for these things and home buyers will negotiate the price down to do it right.
You may place other materials over the drywall as a decorative covering.
I have drywall in my Chicago garage. When primed and painted it looks nice. It's been up for nearly 30 years without any mold or rodent issues. It is easy to maintain.
Good luck.