An Overview of Cost of Living in Newton, MA
Knowing the cost of living in Newton 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 Newton stands at 210, marking it 110% higher than the national average.
The cost of living in Newton 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, Newton falls into this category, which may not be suitable for those seeking an economically favorable living environment.
Housing costs significantly influence the Newton cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 320.8%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.
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 Newton, 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.
What Do Locals Say About the Cost of Living in Newton?
The real experts on a city are its residents. That's why we reached out to 8 locals to get their views on the cost of living in Newton. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 25% found it budget-friendly with decreasing prices, while 75% said it's simply not affordable as prices have continued to rise.
Is Newton Affordable?
Is Newton 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 Newton, the median home price is 415.5% higher than what most folks pay across the country, and monthly rent prices are 99.9% higher than the usual rates. Income levels in Newton come in at $154,398, which is 179.1% higher than the national average.
What Factors can Influence the Cost of Living in Newton?
Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Newton starts at 6.25% and the income tax rates start at 5%.
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 Newton, the utilities index registers at 33.9% higher than the national average.
Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Newton, the housing index stands at 320.8% higher than the national average.
Where is the Data From?
The cost of living in Newton, 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.
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