F
101%
Overall NAT. AVG.
22%
Goods & Services NAT. AVG.
292%
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 Needham Massachusetts National
Cost of living201133100
Goods & Services122122100
Groceries105105100
Health care113113100
Housing392165100
Transportation118118100
Utilities134134100

An Overview of Cost of Living in Needham, MA

Getting a feel for the cost of living in Needham is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Needham is 201, which is 101% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Needham is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Needham falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a major factor in the Needham 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 291.9% 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, Needham goods and services are 21.6% more expensive than the national average, leaving you with less money at the end of the month.

Is Needham Affordable?

Is Needham 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 Needham, for instance, where the median home price falls 387.4% higher than the national average, and monthly rent rates are 69% higher than usual. Additionally, median income levels contribute to the equation, with Needham flaunting a median household income of $174,707, 215.8% higher than the national norm.

What Factors can Influence the Cost of Living in Needham?

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 Needham, the groceries index is 5.3% 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.

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Needham, healthcare costs are 12.9% higher than the national average.

Where is the Data From?

The Needham 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. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Needham is 51% higher than the Massachusetts average
  • The cost of living in Needham is 101% higher than the national average
  • Needham housing is 292% 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 Needham

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Compare Needham, 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$203,690$16,974$4,752$6,111
      Renters$44,361$3,697$1,035$1,331
      A good indicator of the general affordability of housing in Needham, MA, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Needham, the median monthly income is $203,690 for those who own their own homes. Under the standard rule, that income level would allow for $4,752 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $44,361, per the median income in the area. That would allow for renters to spend up to $1,035 on monthly rental expenses.

      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 Needham 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 Needham 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 Needham 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 Needham National avg. Difference
      Home Price $900,200.00$184,700.00387.4%
      Avg. Mortgage Payment $4,745.89$2,346.69102.2%
      Apartment Rent $1,604.00$949.0069.0%

      Transportation

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

      Utilities

      Item Needham 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.
      Randolph, MA33,52612626.4%
      Brockton, MA95,74012726.6%
      Bellingham, MA4,21612323.2%
      Holbrook, MA11,05113130.6%
      Milford, MA26,07212525.1%
      Needham, MA31,177201101.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Michigan City, IN31,1918217.9%
      Princeton, NJ31,16119190.8%
      Naugatuck, CT31,2011088.4%
      Sherwood, AR31,225964.3%
      Centereach, NY31,10013938.6%
      Needham, MA31,177201101.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.