F
51%
Overall NAT. AVG.
22%
Goods & Services NAT. AVG.
125%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Norwood Massachusetts National
Cost of living151133100
Goods & Services122122100
Groceries105105100
Health care113113100
Housing225165100
Transportation118118100
Utilities134134100

An Overview of Cost of Living in Norwood, MA

Understanding the cost of living in Norwood can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Norwood cost of living index is 151, which is 51% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you're in pursuit of an economical living environment, Norwood may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Norwood falls within this bracket.

Housing costs make up a big chunk of the cost of living in Norwood, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 124.9% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Norwood, you you will have to spend 21.6% more than average when compared to the typical prices for these items, making it a more expensive place to live.

Is Norwood Affordable?

Is Norwood 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 Norwood, for instance, where the median home price falls 146.5% higher than the national average, and monthly rent rates are 74.4% higher than usual. Additionally, median income levels contribute to the equation, with Norwood flaunting a median household income of $90,341, 63.3% higher than the national norm.

What Factors can Influence the Cost of Living in Norwood?

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Norwood, the housing index is 124.9% higher than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

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 Norwood, 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 data in Norwood 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.

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Cost Of Living Quick Facts

  • The cost of living in Norwood is 14% higher than the Massachusetts average
  • The cost of living in Norwood is 51% higher than the national average
  • Norwood housing is 125% higher than the national average
  • Massachusetts general sales tax is 22% higher than the national average
  • Massachusetts state income tax is 122% higher than the national average

Most Affordable Places to Live in and Around Norwood

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Compare Norwood, MA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$118,613$9,884$2,767$3,559
      Renters$65,598$5,467$1,531$1,968
      To approximate the cost of living and the housing affordability in Norwood, MA, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Norwood have a median income of $118,613. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,767 per month to avoid calamity and poverty. The renters in the city have an income of about $65,598, which would make their monthly maximum allowable rental costs $1,531.

      Massachusetts Sales Tax

      State General Sales Tax With Max Surtax
      Massachusetts 6.25% 6.25%

      Massachusetts Income Tax

      State Income Tax (Low) Income Tax (High)
      Massachusetts 5% 5%

      Goods & Services

      Item Norwood National avg. Difference
      Haircut $43.72$24.2680.2%
      Beauty Salon $65.56$45.5643.9%
      Toothpaste $3.53$3.704.7%
      Shampoo $1.49$1.2816.4%
      Movie $15.49$12.1327.6%
      Bowling $29.33$18.0063.0%

      Groceries

      Item Norwood National avg. Difference
      Ground Beef $5.48$5.846.2%
      Fried Chicken $1.45$1.578.0%
      Milk $4.76$4.671.9%
      Potatoes $4.99$4.931.1%
      Pizza $12.52$12.093.6%
      Beer $10.21$10.411.9%

      Health Care

      Item Norwood National avg. Difference
      Optometrist $123.17$125.682.0%
      Doctor $157.89$135.7816.3%
      Dentist $149.22$113.2931.7%
      Ibuprofen $11.39$10.656.9%
      Lipitor $384.69$468.6017.9%

      Housing

      Item Norwood National avg. Difference
      Home Price $455,300.00$184,700.00146.5%
      Avg. Mortgage Payment $4,745.89$2,346.69102.2%
      Apartment Rent $1,655.00$949.0074.4%

      Transportation

      Item Norwood National avg. Difference
      Gasoline $3.43$3.460.9%
      Tire Balancing $97.39$59.9262.5%

      Utilities

      Item Norwood National avg. Difference
      All Electricity $302.72$193.9956.0%
      Phone $187.85$192.252.3%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Southfield, MA011919.2%
      Cumberland Hill, RI8,51511717.5%
      Randolph, MA33,52612626.4%
      Brockton, MA95,74012726.6%
      Bridgewater, MA8,54412020.3%
      Norwood, MA29,44615150.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Stockbridge, GA29,4461011.0%
      Oak Park, MI29,446964.2%
      East Palo Alto, CA29,448206105.5%
      Seguin, TX29,458928.0%
      Suisun City, CA29,45914443.8%
      Norwood, MA29,44615150.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.