The cost of living in Boston is one of the highest in the country at 50.8 percent above the national average.
Prices are a bit higher all around, but Boston costs less in general than major cities like New York City’s Manhattan or San Francisco. Other cities, like Seattle and Los Angeles, are more Boston’s equal when it comes to the overall cost of living.
Monthly costs really vary depending on where you live in Boston and what you love to do. If you need tickets to every Red Sox game, living expenses are going to go up. If you can’t resist the pull of the North End for dinner every Saturday night, your need a bigger budget.
Regardless of your indulgences, though, the cost of living in Boston is manageable if you understand what you’re getting into before you make the move. Check out how all the estimated monthly costs break down to see if this amazing but expensive city is right for you.
- Housing costs
- Food prices
- Utility costs
- Transportation costs
- Healthcare costs
- Goods and services costs
- Tax rates
- How much do you need to earn to live in Boston?
Boston housing prices
As is the case with other major metros across the U.S., the housing market — both for-sale and for-rent — is hot in Boston, with no signs of slowing down. Rentals are in demand, and with the huge influx of college students every fall, affordable units are hard to find.
Housing costs in Boston are 120.9 percent higher than the national average. That puts monthly rent up there with cities known for outrageous prices like San Francisco and New York City.
Although in Boston, rents only increased a little over last year. Still, the total price is high for both one-bed and two-bed units. An average one-bedroom apartment will cost you $3,922 per month, up 9 percent from last year. A two-bedroom comes in at $4,952 per month, up 5 percent over last year.
Of course, living further away from the city center helps bring prices down, but it’s still a challenge, especially as a single person, to find solid housing. You might have to settle for something a little small, or look for monthly rents slightly outside the city, but close to public transportation.
If you’re brave enough to try to buy in Boston, the median home price is $796,250, up 9.1 percent over last year. Homes stay on the market for about three weeks, which is not very long.
Boston cost by neighborhood
There are plenty of amazing neighborhoods to live in throughout Boston, and you can find one that works for you at almost any price point.
Of course, the most expensive neighborhoods are in the very heart of the city. They’ll give you a sweet address and put you in proximity to everything, but they’ll heavily impact your cost of living index. An average one-bedroom right in Downtown has a monthly cost of $4,463. Getting closer to Boston Common, Back Bay East is $4,383 for an average one-bed, an 83 percent price increase over last year.
Getting closer to the city’s average one-bed cost is Fenway-Kenmore and the South End.
Boston University and Northeastern University students flock to the cheaper neighborhoods once they move off campus for housing. They’re most interested in places like North Allston with one-beds at $2,175. They’ll even venture outside of the Boston metropolitan area to find a deal in places like Brighton.
Boston food prices
Boston has evolved into a foodie’s paradise over the last decade. In addition to its revered Irish pubs, lobster rolls and clam chowder, James Beard-award-winning chefs have opened esteemed eateries in just about every corner of the city specializing in a wide variety of cuisines.
Restaurant meals in Boston can vary, so there are affordable options for food. At an inexpensive restaurant, your average meal only costs $20, but if you’re on a date, a three-course meal for two rounds out to $83.
When it comes to groceries and home cooking, you can expect to spend slightly more as Boston’s food costs are 16 percent higher than the national average. That’s about the same as where prices stood last year.
How does this translate when you’re looking at food expenses? A steak is going to run you about $17.92. A half-gallon of milk and a box of cereal is $8.35. That six-pack of beer (preferably Sam Adams) rings out to about $10.99.
All of these are affordable items, but with a long grocery list, the money totals up fast. It’s why budgeting is so important to maintaining a solid quality of life.
Boston utility prices
Boston gives you all four seasons in the extremes. From red-hot summers to windy and snowy winters, you’ll definitely get some variety weather-wise.
This also means utilities are a big item on your list of expenses. Though many apartments you rent don’t come with central air, they all have heaters that you’ll run full blast through most of the winter. For AC, opt for a window unit, even though it will raise your electricity bill. In an average size apartment, you’ll need at least one per bedroom (a fan could work in the living area).
With all this, your utility cost in Boston is 23.5 percent above the national average. This is pretty on par with most New England cities. Your energy bill each month will cost you around $250.47.
Boston transportation prices
One of the great things about living in Boston is you don’t need a car. Public transit via the Massachusetts Bay Transportation Authority (a.k.a. the MBTA or The T) is so convenient. It also makes transportation expenses really a combination of traveling on The T and car care, if you decide to own one. Overall, transportation costs are 21.1 percent above the national average.
Being a driver in Boston does come with a hefty expense. Most apartments don’t have parking spaces as part of the rent, so you have to pay extra. Parking is almost always paid either in a garage or via meters, and any free spots fill up quickly and are hard to find.
Renting a monthly parking spot in Boston will cost you around $300 on average, and metered parking ranges from $2 to $3.75 per hour.
However, once you park in the city, it’s easy to cut back on transportation costs thanks to a highly walkable layout in this eastern Massachusetts town. All in all, Boston ranks high in terms of walking (an 89 walk score,) and is pretty friendly for bike riders (77 bike score), as well.
The Massachusetts Bay Transportation Authority
Bostonians may not love the MBTA, but they sure take advantage of The T when living in or near the city. This intricate subway system goes everywhere thanks to the Blue, Red, Green and Orange lines. There are also buses and the Silver Line to get locals everywhere a train doesn’t already go.
A one-way subway ride is $2.40, and bus fares are $1.70 per way. Using a CharlieTicket is the easiest way to ride, and this pass gives you access to commuter rail trips and ferry rides, as well.
Boston healthcare prices
Although it’s difficult to nail down specific healthcare costs because individuals have their own healthcare needs, the healthcare system in Boston is top tier.
The overall cost of healthcare in the city is 17 percent higher than the national average, a 2.5 percent dip over last year. This is less than in other large cities like Chicago, San Francisco and Seattle.
Even with this piece of your cost of living on the high side, individual medical visits aren’t too bad, even without insurance.
- Doctor’s visits are around $182.50
- Eye doctor visits are around $115.88
- Dentist visits are around $131.50
And, with good insurance coverage, these prices go down even more, allowing a person to afford the care they need to stay healthy.
Boston goods and services prices
When it comes to quality of life, goods and services are a huge piece. This is everything in your budget each month you want to do but could live without if it became necessary.
Overall, goods and services are 19.9 percent above the national average. This means entertainment costs are usually higher for all the fun things you do out in the city like waiting to grab a pizza ($12.99) in the North End or going to see a movie ($14.96) off Boston Common.
Even with Boston’s higher prices, there are plenty of things to do in the city for free. Wander through the Public Garden or walk the Freedom Trail. It doesn’t cost anything to take in the history of this amazing place.
Taxes in Boston
Massachusetts has a state-wide sales tax only. Individual cities cannot add on to it. This means you’ll pay 6.25 percent on things you buy everywhere in the state. It also means that when you wrack up a $1,000 bill shopping on Newbury Street or around Quincy Market at Faneuil Hall, $62.50 goes straight to taxes.
To make Boston life a little easier, the state offers an annual sales tax holiday, usually in August. This is a tax-exempt weekend for retail items and a big shopping weekend for many.
How much do I need to earn to live in Boston?
Taking it from the experts, 30 percent of your salary should go toward rent. But, when talking about the cost of living in Boston, that number gets pretty high. Taking the average one-bedroom rent as the base ($3,863), you’d need to have an average salary of $154,520.
Even with a solid job market, the median household income is only $76,298. Most likely, your average salary is not going to make it possible to live alone in the heart of the city. But, you’ve got options. To get specific, use our rent calculator to compare your current budget and savings with the cost of living averages.
Living in Boston
Living in Boston certainly comes with the expectation you’ll shell out a lot of money to settle in. But, this is a place so worth considering. There are passionate people, a booming business climate, countless cultural institutions and world-class colleges and universities.
This information and more are things that every Bostonian knows. It’s what you’ll discover if you can make the cost of living in Boston work within your budget.
