With Boston constantly growing and announcing multiple high-profile developments this year, we figured it was time to talk about the cost of planting roots in Beantown.
The median household income in Boston is $89,212 according to the US Census Bureau. State-wise, the Bay State is No. 3 in the country for median income at ~$89,645 per household.
The overall cost of living in Boston is higher than the national average.
Screenshot via bestplaces.net
The overall cost of living in Boston is 50.3% higher than the national average, and 18.3% higher than the rest of the state.
In Boston, the cost of healthcare is 10.3% lower compared to other parts of the US. However, the average costs of housing, transportation, and groceries in the city are higher than other cities in Massachusetts and the country overall.
Breaking down the numbers
Hypothetically speaking, if you live in a household that brings in $89,212, your max monthly budget for rent and utilities would be about $2,230 (30% of your monthly gross income). But, the average monthly rent for an apartment in Boston is $3,842 — surpassing that estimated budget.
Meanwhile, if you’re wondering how much you can currently afford to spend on buying a home in Boston, try using SmartAsset’s cost calculator. Factors like your marital status, annual pre-tax income, down payment, and monthly debt, will help determine that figure. According to BestPlaces, the median home cost in Boston is $656,500.
While we’re crunching numbers, let’s also take a look at the chart below to see how Boston’s cost of living compares to that of Worcester.
Boston has more affordable health care than Worcester.
Screenshot via bestplaces.net
Interested in seeing Boston’s cost of living compared to cities in other states? We played around on NerdWallet’s cost of living calculator, where you can put in any city along with your current pre-tax household income to find out what other cities you could afford to live in.
We took a look at the cost of living in Boston compared to New York City (Manhattan). Here’s what we found:
- The cost of living is 54% higher in Manhattan.
- To maintain our standard of living, we would need to bring in $137,314 to our Manhattan household.
- The median cost for a two-bedroom apartment is $5,473, which is $1,527 less than Boston.
Local housing + developments
Boston also has income-restricted and subsidized housing options + other government-funded programs to help find more affordable units.
There are also a number of local development firms working on apartments — from the Redgate’s 291-unit Gibson Point development in Revere, expected to open September 2024, to the 51-story South Station Tower, developed by Hines with an anticipated 2025 opening date.
