F
66%
Overall NAT. AVG.
22%
Goods & Services NAT. AVG.
174%
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 Boston Massachusetts National
Cost of living166133100
Goods & Services122122100
Groceries105105100
Health care113113100
Housing274165100
Transportation118118100
Utilities134134100

An Overview of Cost of Living in Boston, MA

Understanding the cost of living in Boston 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 Boston cost of living index is 166, which is 66% 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 prioritize affordability when seeking a new place to live, Boston may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Boston falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs are a major factor in the Boston 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 173.5% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Boston goods and services are 21.6% more expensive than the national average, leaving you with less money at the end of the month.

What Do Locals Say About the Cost of Living in Boston?

The real experts on a city are its residents. That's why we reached out to 33 locals to get their views on the cost of living in Boston. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 0% found it budget-friendly with decreasing prices, while 100% said it's simply not affordable as prices have continued to rise.

Is Boston Affordable?

Is Boston an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Boston, the median home price is 214.7% higher than what most folks pay across the country, and monthly rent prices are 77.6% higher than the usual rates. Income levels in Boston come in at $76,298, which is 37.9% higher than the national average.

What Factors can Influence the Cost of Living in Boston?

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 Boston, the housing index is 173.5% higher than the national average.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Boston, the transportation index is 17.5% 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 Boston, the utilities index registers at 33.9% higher than the national average.

Where is the Data From?

The Boston cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Boston is 25% higher than the Massachusetts average
  • The cost of living in Boston is 66% higher than the national average
  • Boston housing is 174% higher than the national average
  • Massachusetts general sales tax is 22% higher than the national average
  • Massachusetts state income tax is 93% higher than the national average

Most Affordable Places to Live in and Around Boston

See all the best places to live around Boston

Compare Boston, 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$123,009$10,251$2,870$3,691
      Renters$53,188$4,432$1,241$1,596
      The affordability of the housing market in Boston, MA as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Boston homeowners, the median income is $123,009. This indicates that a monthly maximum of $2,870 should be spent by homeowners on all housing related costs. Renters have a median income of $53,188. This indicates that renters would have a maximum of $1,241 for their rent related monthly costs.

      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% 9%

      Goods & Services

      Item Boston 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 Boston 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 Boston 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 Boston National avg. Difference
      Home Price $581,200.00$184,700.00214.7%
      Avg. Mortgage Payment $4,745.89$2,346.69102.2%
      Apartment Rent $1,685.00$949.0077.6%

      Transportation

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

      Utilities

      Item Boston 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%
      Randolph, MA33,52612626.4%
      Lynn, MA94,20113635.5%
      Salem, MA43,35013939.2%
      Chelsea, MA39,87814039.5%
      Boston, MA689,32616665.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Vancouver, BC694,440n/a 
      El Paso, TX679,8798910.6%
      Washington, DC701,97416463.7%
      Detroit, MI672,3518415.5%
      Nashville, TN667,0701088.4%
      Boston, MA689,32616665.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.