An Overview of Cost of Living in Dedham, MA
Are you thinking about relocating, but curious about the potential cost of living in Dedham? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Dedham stands at 156, making it 56% 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 you value affordability in your search for a new place to live, Dedham may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Dedham falls into this category, which may not align with your desire for an affordable place to call home.
Housing costs are a very significant part of the Dedham cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 140.5% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
The things you purchase regularly, like clothes, haircuts, movie tickets and gym memberships, can make a big dent in your budget and make up 33% of the cost of living index. Unfortunately in Dedham, these items will cost you 21.6% more than what's considered the norm, making it a more expensive place to call home.
Is Dedham Affordable?
Is Dedham affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Dedham, the median home price is 161.2% higher than the national average and monthly rent prices are 92.1% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Dedham boasting a median household income of $101,780, 84% higher than the national average.
What Factors can Influence the Cost of Living in Dedham?
Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.
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 Dedham, the groceries index is 5.3% higher than the national average.
Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Dedham, the general sales tax rate starts at 6.25%, and income tax rates begin at 5%.
Where is the Data From?
The cost of living in Dedham, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.
Here are the best places to live in Massachusetts
Check out the 10 safest cities in Massachusetts
10 Best cities in Massachusetts for employment
Top 10 best public schools in Dedham