There are many reasons to love Boston, one of the oldest cities in the United States. It's steeped in American Colonial history, has a thriving arts and culture scene, and is surrounded by natural beauty. However, it's also one of the most expensive cities in the world, taking the No. 5 spot in Numbeo's Cost of Living Index by City 2024 Mid-Year, behind New York (No. 3) and San Francisco (No. 4). If you're considering a move to Boston, it's helpful to know what aspects of living there make it expensive and in what ways it's more affordable compared to other major cities in the US.

 

Home ownership and rental

Boston's high demand for housing, limited space, and booming tech and education sectors make it one of the most expensive cities in the US to rent or buy a home. Apartments, especially in desirable neighborhoods like the downtown area, come at a premium, while rising property values and competitive real estate markets drive up home prices significantly. Hiring professionals for home maintenance, such as plumbing, electrical work, or renovations, can also be expensive in Boston.

 

Infrastructure

Boston is among the Top 10 Smartest Cities in the United States, according to a study by ProptechOS, thanks to its focus on technology and sustainability that naturally extends to its residential spaces, making it a hub for smart homes. "Boston's advanced infrastructure, including high-speed internet, energy-efficient systems, and smart public services, creates an ideal environment for integrating smart home technology. Residents are quick to adopt smart home gadgets, such as robot vacuums, which enhance convenience, cleanliness, and energy savings," says a spokesperson from ECOVACS. A smart home may be more expensive than its traditional counterparts, but is more convenient.

 

Climate-Related Costs

Boston's cold winters and coastal location mean additional expenses related to winter clothing, vehicle maintenance, and home heating costs. The city's infrastructure also faces occasional storm-related challenges, which can lead to increased utility bills and repair costs for residents during and after extreme weather events.

 

Home maintenance

Hiring professionals for home maintenance, such as plumbing, electrical work, or renovations, can be expensive in Boston. The city's high labor costs for skilled workers means that you should budget carefully for home repairs and upgrades.

 

Utilities

Utilities, including electricity, piped gas, heating, and water, can be a major cost in Boston, especially during the harsh winter months when heating is a necessity, making these costs a significant factor in overall living expenses. In fact, Boston households pay 72.3% higher electricity bills and 11.2% higher piped gas bills than the national average, according to the U.S. Bureau of Labor Statistics.

 

 

Eating out

Boston's local food scene is diverse, with classic New England dishes like clam chowder and lobster rolls, and international fare like Italian, Mexican, and Indian cuisines on offer. But eating out can be costly, with the Numbeo Cost of Living Index placing the city sixth on its Americas Restaurant Price Index, making frequent dining out a budget consideration.

 

Schooling

Education in Boston, particularly for private schools and at higher education institutions like MIT and Boston University, is renowned but expensive. Families often need to set aside significant funds for tuition, whether for private K-12 schools or college education, adding to the overall cost of living in the city.

 

Transportation

Gasoline prices in the Boston area — US$3.58 a gallon in August 2024, according to the U.S. Bureau of Labor Statistics — hover around the national average. This may make owning a car appealing, but it's expensive to buy and park your own vehicle in Boston. However, Boston public transportation is relatively affordable compared to other major cities in the country — a one-way ticket on the subway costs US$2.40, compared to US$2.90 in New York — so Bostonians generally opt to walk to work or take public transit.

 

Healthcare Costs

Boston is home to some of the best hospitals in the country, including Massachusetts General Hospital and Brigham and Women's Hospital, which contribute to a high standard of medical care. However, healthcare costs in the city are notably high, driven by advanced medical services, high demand, and the overall cost of living. Health insurance premiums and out-of-pocket expenses tend to be above the national average, so residents should budget accordingly.

 

Childcare and Family Expenses

For families with young children, childcare is another significant expense in Boston. The cost of daycare and preschool is generally higher than the national average, partly due to strict licensing regulations and the high cost of living for staff in the area. According to recent data, full-time daycare in Boston can average $1,700-$2,500 per month per child, which impacts household budgets considerably.

 

Impact of Taxes

Massachusetts has a relatively high state income tax rate, which is 5% wirh a surtax of 4% on income over 1 million dollars, and Boston residents also face property taxes if they own homes. While sales tax is moderate compared to other states, it still contributes to the overall cost of living. Understanding the tax implications is essential for those moving from states with lower tax rates.

 

Relocation Costs

For those moving to Boston from other parts of the U.S., the costs associated with relocation, such as moving services, security deposits, and other setup fees, can be considerable. Newcomers should budget for initial expenses such as furnishing a new home, paying for first and last month's rent, and covering deposits for utilities and services.

 

Final thoughts

Boston is undeniably an expensive city to live in, with high costs across various sectors, from housing and utilities to groceries and transportation. For residents and newcomers, understanding and managing these expenses is essential for maintaining a comfortable lifestyle in this vibrant, yet costly, city.