Cost of Living in Boston, MA: A Homebuyer’s Guide to Boston Living Expenses

If you’re considering a move to the City of Champions for your retirement, it can help to understand the cost of living in Boston, MA, when making your decision. You'll love the abundant activities, bustling business vibe, and exciting culture. However, given the city’s popularity, you may find that Boston living expenses can be higher than other areas. 

In this guide, we break down the Boston living expenses, from new homes to everyday essentials, so you can get a clearer picture of the average cost of living in Boston, MA.

Summary:

• Cost of Living in Boston, MA

• Average Cost of a New Construction Home in Boston

• Average Cost of New Construction Homes in Boston by Neighborhood

• Average Cost of Groceries/Utilities in Boston, MA

• Average Salary in Boston, MA

• Potential Tax Benefits for Homeowners in Boston, MA

• Conclusion

Cost of Living in Boston, MA

Boston, Massachusetts, is a remarkable city, not only for its history but because of the dynamic culture and lifestyle it offers. From art museums to popular sports teams, Boston has something for everyone to enjoy. Residents also appreciate how conveniently close Boston is to so many other cities and states around New England. Plus, it’s a bustling business hub, boasting companies from finance to the pharmaceutical industry. 

However, given the city’s many perks and popularity, the Boston price of living can be much higher than in other areas. RentCafe® reports that the average cost of living in Boston is 47% higher than the national average as of September 2024. 

Average Cost of a New Construction Home in Boston

Housing costs are typically a significant factor in every budget, and Boston is no exception. Per RentCafe’s September 2024 data, housing costs in Boston are significantly higher than in other U.S. cities, specifically 120% greater than the national average. 

Prices for new construction homes in Boston can vary dramatically. NewHomeSource® finds that as of September 2024, brand-new homes range from the mid $400Ks to almost $2M, depending on the neighborhood, size, and amenities. Del Webb® offers new homes in 55+ communities in Boston, MA, starting in the upper $300Ks. 

To estimate the cost of living in Boston per month for housing, consider researching the best Boston suburbs for retirees and comparing home prices in those areas.

Average Cost of New Construction Homes in Boston by Neighborhood

If you’re curious about the cost of new construction condos and townhomes in Boston, Massachusetts, we've got the latest data for you as of September 2024. Keep in mind that additional costs like private mortgage insurance (PMI), property taxes, home insurance, and HOA fees may apply. Here’s the cost of new homes in some of Boston’s more popular suburbs: 

• Sudbury, MA: The average cost to build a new home in Sudbury, MA, ranges from the mid $300Ks to just under $1M, according to NewHomeSource as of September 2024. 

• North Reading, MA: Building a new home in North Reading, MA, ranges from the mid $400Ks to the mid $700Ks, per NewHomeSource. Browse new construction homes in active adult communities in North Reading, MA, from Pulte Homes®, starting in the mid $400Ks. 

• Westborough, MA: Realtor.com® finds that the average cost to build a new home in Westborough, MA, ranges from the upper $300Ks to the high $800Ks. Del Webb offers new homes in our over-55 communities in Westborough, MA, starting in the upper $300Ks.

• Woburn, MA: Per Realtor.com, the average cost of building a new home in Woburn, MA, ranges from the upper $700Ks to $1.2M. 

• Grafton, MA: Building a new home in Grafton, MA, ranges from the mid $400Ks to the mid $600Ks, per Realtor.com.

Average Cost of Groceries/Utilities in Boston

RentCafe finds the average cost of living in Boston is 38% higher than the national average for utilities and 5% greater than the national average for food as of September 2024. While these daily and monthly expenses can be more expensive, there are options for every budget. 

For example, with groceries, Boston offers a variety of stores, from budget-friendly to high-end markets. Depending on your household size and food choices, 2024 data from World Population Review estimates groceries cost roughly $406 monthly per person.

Monthly energy bills in Boston typically average approximately $320, and phone bills run about $188 per month, according to RentCafe. However, these costs can fluctuate. Your actual expenses may vary based on factors like service provider, household size, location, and lifestyle choices.

Average Salary in Boston

Boston is a thriving business hub with industries like technology, health care, finance, education, and biotechnology. With higher-than-average salaries to match its bustling lifestyle, Boston residents earn an average of $81,050 annually compared to the national average of $75,500, according to ZipRecruiter® as of September 2024. Salaries in Boston typically range from $62,877 (25th percentile) to $98,078 (75th percentile) annually and vary based on your occupation, experience level, and more. 

Potential Tax Benefits for Homeowners in Boston

Owning a home in Boston, like elsewhere in the U.S., may come with great tax perks to help you keep more money in your pocket. Depending on your situation, you may enjoy benefits like mortgage interest deductions, home equity loan interest deductions, capital gains exclusions, property tax deductions, and even energy efficiency tax credits. Boston residents who qualify may also be able to reduce their tax bill through a residential exemption, according to the Boston.gov website. 

These savings can really add up over time, helping make homeownership a smart financial move.

Conclusion

As you contemplate buying a home in Boston, consider your preferences, financial situation, and future plans. To navigate the cost of living in Boston, MA, creating a detailed budget can be beneficial. Researching the best Boston suburbs for retirees is also helpful when choosing a place to live that best suits your budget.

While the cost of living in both Boston suburbs and downtown can be steep, the city's rich history, dynamic culture, and diverse neighborhoods help make it an exciting place to call home.

Explore active adult communities in Boston, MA, today or browse more Del Webb blogs.

Written By: Emily Johnson, New England Native, Former Boston Resident, and Marketing Manager of Pulte Homes New England Division