Massachusetts is home to various lifestyles, with costs that vary widely across the state. While the state’s cost of living is generally high—especially in Boston, where a one-bedroom apartment can cost over $3,000—more affordable options exist in smaller cities. The cost of essentials like groceries and utilities also shifts by region, with higher prices in major cities. In this article, we’ll explore what it really takes to live comfortably in Massachusetts, from housing and utility expenses to grocery costs across the state.
Housing costs: Median home prices and average rent in Massachusetts
Massachusetts housing costs are notably higher than the national average, with the state’s average rent at $2,833 compared to the national average of $1,645. The median home sale price in Massachusetts is approximately $624,300, reflecting the competitive housing market. Cities like Boston and Cambridge contribute to these high averages, with steep rental prices that reflect their desirability and bustling job markets. Yet, the state also offers a range of options, with more budget-friendly cities such as Worcester, Lowell, and Springfield that still deliver access to amenities. In the following sections, we’ll break down the housing costs in five popular cities in Massachusetts, exploring what renters can expect in different areas across the state.
Massachusetts housing costs: Average rents and median home sale prices
City in Massachusetts | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
National Average | $1,495 | $1,725 | $439,000 |
$3,960 | $4,892 | $775,000 | |
$3,533 | $4,200 | $1,173,000 | |
$1,924 | $2,324 | $460,000 | |
$2,165 | $2,425 | $600,000 | |
$1,420 | $1,500 | $320,000 | |
$1,913 | $2,220 | $447,500 | |
$1,755 | $2,108 | $470,000 | |
$2,595 | $2,990 | $628,450 | |
$2,290 | $2,400 | $676,500 | |
$1,350 | $1,500 | $290,000 |
Housing costs in popular cities in Massachusetts
Boston
With an average rent of $3,960 for a one-bedroom and $4,892 for a two-bedroom, Boston stands out as one of the most expensive rental markets in Massachusetts. Along with expensive rents, the median home sale price is $775,000 which is significantly higher than the national median. Although a lifestyle in this city comes at a high price, Boston offers residents rich history, vibrant nightlife, world-class dining, historic neighborhoods, and landmarks like Fenway Park and the Freedom Trail.
Read more: Should I Move to Boston, MA? 12 Pros and Cons
Cambridge
Just across the Charles River from Boston, Cambridge combines a historic feel with a youthful, academic vibe as it’s home to Harvard and MIT. With average rents of $3,533 for a one-bedroom and $4,200 for a two-bedroom, Cambridge is nearly as pricey as Boston but offers a quieter, more intellectual setting. The median home sale price in Cambridge is $1,173,000 which is more than double the national median. These costs only further reflects this city’s desirability.
Worcester
For those seeking more affordable rent in Massachusetts without sacrificing urban amenities, Worcester is a popular choice. The average rent for a one-bedroom is $1,924, while a two-bedroom averages $2,324, making it significantly more budget-friendly than Boston and Cambridge. The median home sale price in Worcester is approximately $460,000, which is slightly higher than the national average, providing an attractive option for first-time homebuyers. Renters here enjoy a smaller city feel with easy access to nearby outdoor attractions like Lake Quinsigamond and the rolling hills of central Massachusetts.
Springfield
Springfield, with one of the most affordable rental markets in Massachusetts, has an average one-bedroom rent of $1,420 and $1,500 for a two-bedroom. Known as the birthplace of basketball, Springfield offers a laid-back vibe and is ideal for renters seeking budget-friendly housing options. The median home sale price in Springfield is about $320,000, below the national median, making it an appealing choice for those looking for affordable homeownership in a city setting.
Expect to pay more than the national average on utilities
Utility costs in Massachusetts tend to be above the national average, with seasonal changes, especially winter, significantly impacting monthly bills. Households are paying around $696.52 on average per month for gas, electricity, water, internet, cable, phone, and sewage. Heating costs can rise steeply during colder months, particularly in older buildings in cities like Boston, where insulation may not be as efficient. Electricity costs are also typically higher than average, contributing to a noticeable monthly expense for residents. Both renters and homeowners should budget for potential fluctuations in utility costs, particularly in central and western areas where winter weather can be more intense.
Energy bill comparisons: Massachusetts cities vs. nationwide average
Monthly Energy Bill | Monthly Phone Bill | Comparison to National Avg. | |
National Average | $200.07 | $193.54 | |
$186.73 | $190.48 | -6% less | |
$342.73 | $188.72 | +43% more |
Data from Redfin’s Cost of Living Calculator, November 2024
On average, grocery costs are 15% more expensive in Massachusetts
Grocery costs in Massachusetts can be a bit of a shock for newcomers, as residents typically spend about 15% more on groceries compared to the national average. In bustling cities like Boston and Cambridge, you’ll notice that prices for everyday items, from fresh produce to dairy, can be noticeably higher. While this can put a dent in your budget, there are ways to keep costs down, like checking out local farmers markets or bulk-buying stores, which often offer better deals. If you’re living in smaller towns or rural areas, you might find slightly lower prices, but overall, you should be prepared to spend a little more on groceries while living in Massachusetts.
From gas, tolls, trains and busses – transportation costs also run high
Transportation costs in Massachusetts can vary widely depending on your location and preferred mode of travel. Gas prices hover around an average of $3.05 per gallon, which is slightly lower than the national average of $3.10. However, this can be deceptive, as some areas, like Dukes County, experience significantly higher prices, averaging $4.26 per gallon. For those who prefer public transportation, Massachusetts has a robust system, particularly in the Greater Boston area, where the Massachusetts Bay Transportation Authority (MBTA) provides extensive subway, bus, and commuter rail services. Monthly passes for public transit can be a cost-effective option for commuters, though fares can add up for frequent riders. Additionally, if you’re driving, be mindful of tolls on major highways, which can increase your overall transportation expenses.
Massachusetts faces soaring healthcare costs
Healthcare costs in Massachusetts are among the highest in the nation, reflecting the state’s commitment to quality medical services. For example, overall healthcare expenses in Boston are approximately 18% more than the national average. The average cost for a doctor’s visit in the state is around $140.46, but in Boston, that jumps to about $189.48, highlighting the higher costs associated with urban healthcare. While residents often pay more for insurance premiums compared to the national average, the state provides various coverage options through programs like the Massachusetts Health Connector.
Access to top-tier hospitals and specialists is a significant advantage of living here, particularly in cities like Boston, which is home to renowned institutions such as Massachusetts General Hospital and Brigham and Women’s Hospital.
The tax burdens are heavy in Massachusetts
Tax rates in Massachusetts can be quite significant, impacting residents’ overall cost of living. The state imposes a flat statewide sales tax of 6.25%, which applies to most goods and services, making it essential to factor this into your budget when shopping. Income tax is also straightforward, with a flat rate of 5% on earnings; however, for high earners, there’s an additional 4% surtax on income over $1 million. Property taxes in Massachusetts are notably high as well, with the state’s average effective tax rate sitting at 1.12%, surpassing the national average of 0.99%.
How much do I need to earn to live in Massachusetts?
Living in Massachusetts requires careful financial planning due to the relatively high cost of living. A common guideline is the 30% rule, which suggests that no more than 30% of your gross monthly income should go toward housing costs, including rent or mortgage payments. For example, if you aim to rent a one-bedroom apartment in Boston at an average cost of about $3,960 per month, you would need a gross monthly income of at least $13,200 to stay within that guideline. Similarly, in a more affordable city like Worcester, where the average rent for a one-bedroom is around $1,924, you would need a monthly income of approximately $6,413. Beyond housing, it’s essential to consider other expenses, including utilities, groceries, transportation, and healthcare, which can add up quickly.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
