An Overview of Cost of Living in Chelsea, MA
Are you thinking about relocating, but curious about the potential cost of living in Chelsea? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Chelsea stands at 140, making it 40% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Chelsea is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Chelsea falls into this category, which may not align with your goal of finding a budget-friendly living environment.
Housing costs are a major factor in the Chelsea cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 86.8% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.
Recurring goods and services expenses like haircuts, toothpaste, gym memberships and movie nights are a big part of your spending and make up 33% of the cost of living index. In Chelsea, these items will cost you 21.6% more than what most folks pay, making it a bit more expensive to live here.
Is Chelsea Affordable?
Is Chelsea affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Chelsea, for instance, where the median home price falls 100.3% higher than the national average, and monthly rent rates are 55.3% higher than usual. Additionally, median income levels contribute to the equation, with Chelsea flaunting a median household income of $60,370, 9.1% higher than the national norm.
What Factors can Influence the Cost of Living in Chelsea?
Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Chelsea, the groceries index is 5.3% higher than the national average.
Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Chelsea, the utilities index registers at 33.9% higher than the national average.
Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Chelsea, the standard sales tax rate starts at 6.25%, and the income tax rates commence at 5%.
Where is the Data From?
The cost of living data in Chelsea displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.
Here are the best places to live in Massachusetts
Top 10 cities in Massachusetts with the best education system
These are the 10 most affordable cities in Massachusetts
Check out the 10 safest cities in Massachusetts