Cost of Living in Boston

Understanding the cost of living in Boston is crucial if you’re among the many who long to call this city home. Whether you’re drawn in by the educational opportunities, beautiful changing seasons throughout the year, or the city’s storied history, Boston has something for everyone. This city has a higher cost of living index than Massachusetts and the rest of the United States, coming in about 62.4% higher than the national average and 35.2% higher than the state average. You can expect to pay more in Boston for your groceries, utilities, and transportation than you would in many other places.

What factors to include in the cost of living in Boston

If you’re not sure whether you can afford to live in Boston, there are a few factors you should consider:

• Housing costs
• Transportation costs
• Utilities
• Food costs
• Taxes
• Other Expenses
• Income and job market
• Entertainment

So before you move to Boston, here’s what you’ll need to know:

The cost of housing in Boston

When compared to the rest of the United States, Boston comes with significantly higher-than-average housing costs, and high housing costs play a large part in the relatively high average cost of living in Boston. Apartment costs in Boston can vary depending on the apartment’s size and the area in Boston where you’re looking to rent. Boston recently surpassed San Francisco and is now has the nation’s second most expensive rent.

The average rent in Boston for a one-bedroom apartment is approximately $3,040 per month. You’ll find a range of costs, with some apartments priced at as little as  $650 per month and others costing upward of $4,000. Compared to one-bedroom apartments, studio apartments are typically more affordable, with averages coming closer to $2,580. Two-bedroom apartments run about $3,500 per month, while three-bedroom apartments average around $3,450. Four-bedroom apartments may be closer to $4,100.

Some of the most affordable neighborhoods for one-bedroom apartments in Boston include:

• Oak Square: $2,000
• Commonwealth: $2,100
• Upper Washington – Spring Street: $2,710

Compare these figures to more expensive neighborhoods, like Bay Village, Downtown Boston, D Street/West Broadway, City Point, and Franklin Field South, where average rent prices come in at more than $3,680.

Transportation costs in Boston

A very walkable city, Boston is more accessible without your vehicle than in other places. Many city dwellers rely on the Massachusetts Bay Transportation Authority (better known as the T) to travel throughout the city and surrounding neighborhoods and suburbs by subway, train, and bus. A ride on the T costs $2.90 when you use a Charlie Ticket, which is preloaded with fare money and cannot be reloaded. However, with a Charlie Card, a reloadable card perfect for frequent riders, you only pay $2.40 per ride.

If you want to drive around town or out to other parts of beautiful New England, you also have easy access to a network of highways, including the Massachusetts Turnpike, Interstate 93, and Interstate 95. Regular gas in and around Boston runs about $4.386 per gallon. This is slightly higher than the state average of $4.356 per gallon and the national average of $4.325 a gallon.

Cost of utilities in Boston

Boston’s cost index for utilities is at 116.8, slightly higher than the state average of 112.9. Some of this is due to the wide range of temperatures experienced here. Average winter lows dip well below freezing while summer highs can climb into the 80s, making both heating and cooling essential. You can expect to pay around $170 a month in utility expenses for a single person living in an average size apartment.

Food costs in Boston

In Eastern Massachusetts, food is about 24% more expensive than the rest of the country. An individual can expect to spend about $349 on food each month. Fortunately, sales tax does not apply to groceries, though it does apply to restaurant meals. If you’re dining out, expect to pay between $15 and $40 for your meal with a 6.25% tax.

Boston taxes

When you live in Boston, you can expect to pay a flat state income tax of 5%. There are no additional sales taxes in the city of Boston, so you pay the state sales tax rate of 6.25%.

Other expenses to consider in Boston

You can expect to pay less in Boston for health care because average health care costs in Boston are lower than the national average. The cost index for health care in Boston is 83.4, nearly 20 points less than the national average.

Childcare in Boston is also more on the expensive side. Massachusetts has the highest child care costs in the nation, coming in at $20,913 per year for one child or $36,008 a year for two.

Income and job market in Boston

According to the 2020 U.S. Census, the median household income in Boston was $76,298 per year. That’s because this city is home to many fantastic employers across multiple industries, including medical, finance, technology, media, and business. Some of the most prominent employers in the city include:

• Massachusetts General Hospital
• Brigham and Women’s Hospital
• Boston Children’s Hospital
• Ropes & Gray LLP
• Houghton Mifflin Harcourt Publishing
• Fidelity
• Liberty Mutual
• Tufts Medical Center
• The Boston Globe

However, it’s important to note that Boston’s unemployment rate is just a bit higher than the national average, sitting at 9.4%.

In Boston, you’ll find many prestigious educational institutions around every corner. Dozens of universities and colleges have campuses throughout Boston, including Boston University, Boston College, Emerson College, Northeastern University, and Suffolk University. This access to higher education makes Boston an attractive city for students pursuing a wide variety of fields, including media, health care, fine arts, technology, and science. It also makes Boston a great place for those who want to teach at the collegiate level.

Entertainment costs in Boston

Many people immediately associate Boston with its place in American history. Boston takes great pride in its role in history and preserves an assortment of historic sites that draw locals and visitors alike. Some must-visit sites, museums, and venues include:

• The Freedom Trail: This is a free, self-guided walking tour that takes you to more than a dozen historical sites and buildings throughout Downtown Boston all the way up to Charlestown across the river.
• Museum of Fine Arts, Boston: Prices for this outstanding arts and culture museum range from $10 for children’s general admission to $27 for adult admission plus access to special exhibits.
• Museum of Science, Boston: This awesome science, technology, and industry museum costs $24 for children and up to $29 for adults.
• Faneuil Hall: This historical site is free to the public, and the market across the way has plenty of food and gift stalls for shopping.
• Fenway Park: Home of the Red Sox, this park has tickets for baseball games, concerts, and special events that range in price.

Understanding the cost of living in Boston can help you budget when you’re planning a move. Even though Boston comes with higher prices in many cost of living categories, you can still search for affordable apartments to rent in Boston on Zumper.

Frequently asked questions about the cost of living in Boston

Understanding the cost of living in Boston can help you budget when you’re planning a move. Even though Boston comes with higher prices in many cost of living categories, you can still search for affordable apartments to rent in Boston on Zumper.