| Index | Cambridge | Massachusetts | National |
| Cost of living | 205 | 131 | 100 |
| Groceries | 109 | 109 | 100 |
| Health care | 124 | 116 | 100 |
| Housing | 399 | 169 | 100 |
| Transportation | 117 | 115 | 100 |
| Utilities | 121 | 117 | 100 |
| Lifestyle & Entertainment | 126 | 115 | 100 |
| Household Items | 112 | 109 | 100 |
| Education & Childcare | 152 | 127 | 100 |
Knowing the cost of living in Cambridge allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Cambridge stands at 205, marking it 105% higher than the national average.
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 Cambridge 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, Cambridge falls into this category, which may not align with your goal of finding a budget-friendly living environment.
Housing costs make up a big chunk of the cost of living in Cambridge, 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 299.3% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
Household expenses make up 8% of the total cost of living index score and cover the everyday essentials needed to keep your home running smoothly. These items may include cleaning supplies, laundry detergent, toiletries, clothing basics, and kitchen essentials. In Cambridge, you can expect to pay 12.4% more than average for these everyday necessities, making it a more expensive place to live.
The most insightful perspective on a city comes from its residents. We recently surveyed 15 locals to gauge their perception of the cost of living in Cambridge. The feedback revealed that 13% of respondents found the cost of living to be reasonable, with prices on the decline, while 87% regarded it as notably expensive with prices that continue to rise.
Wondering if Cambridge is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Cambridge, for example, the median home price is 368.7% higher than what folks pay nationally, and monthly rent is 137.4% higher than the usual rates. Plus, income levels matter too, with Cambridge boasting a median household income of $158,644, which is 95.1% higher than the national average.
Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Cambridge, the transportation index is 17% higher than the national average.
Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.
Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Cambridge, healthcare costs are 23.9% higher than the national average.
The cost of living data for Cambridge shown above is based on a U.S. average baseline score of 100, making it easier to compare how far your dollar may go from one city to another. Housing uses U.S. Census home price and rental data, while all remaining values are AI-assisted estimates informed by regional pricing, climate, transportation dynamics, and local economic factors. These scores are best used for directional comparisons between cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $223,992 | $18,666 | $5,226 | $6,720 |
| Renters | $133,030 | $11,086 | $3,104 | $3,991 |
| State | General Sales Tax | With Max Surtax |
| Massachusetts | 6.25% | 6.25% |
| State | Income Tax (Low) | Income Tax (High) |
| Massachusetts | 5% | 9% |
| City | Population | Cost of Living Index | National Avg. |
| Randolph, MA | 34,560 | 123 | 23.3% |
| Lynn, MA | 97,235 | 134 | 34.4% |
| Salem, MA | 44,881 | 135 | 35.3% |
| Chelsea, MA | 41,000 | 135 | 35.2% |
| Saugus, MA | 29,084 | 139 | 38.9% |
| Cambridge, MA | 121,456 | 205 | 104.5% |
| City | Population | Cost of Living Index | National Avg. |
| Richardson, TX | 121,339 | 117 | 17.1% |
| Rochester, MN | 121,687 | 106 | 5.5% |
| Evansville, IN | 121,758 | 87 | 13.4% |
| Fairfield, CA | 121,000 | 151 | 50.7% |
| Independence, MO | 120,977 | 90 | 9.7% |
| Cambridge, MA | 121,456 | 205 | 104.5% |
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