We’ve spent our whole lives in Massachusetts, so we’ve seen the state go from affordable to expensive decade by decade. Each year, we hear more and more transplants ask, “Why is everything so pricey here?” From Boston’s sky-high rents to the cost of a ferry ride to Nantucket, the state’s affordability (or lack thereof) is a constant topic of debate.
Even our marketing guy who lives in the most expensive part of the country (San Francisco) said that he won’t come back to Cape Cod until after he’s won the lottery.
Anecdotes aside, Massachusetts doesn’t just feel expensive—it is expensive. The cost of living here is 46% higher than the national average. To understand why, we need to dig deeper into the factors driving up costs, from housing shortages to top-tier amenities.
1. Housing: The Number One Culprit
Massachusetts real estate is in a league of its own. The state boasts some of the highest home values in the country. And if you’re eyeing Boston, good luck—median home prices in the city hover around $750,000. In contrast, Pittsfield, one of the state’s most affordable towns, is still 2% more expensive than the national average.
Why are homes so pricey?
- Demand outstrips supply: Boston is a tech hub, home to institutions like Harvard and MIT. Everyone wants a piece of the pie, but there just aren’t enough houses to go around.
- Zoning laws: Strict zoning laws limit construction. It’s a classic case of supply and demand—when supply is strangled, prices soar.
- Historical preservation: You can’t throw a rock without hitting a historic building in Massachusetts. While charming, preserving these properties makes new construction challenging.
2. Cost of Living: Beyond Housing
Even if you skip the housing market and rent, Massachusetts won’t let your wallet breathe. Groceries, healthcare, transportation—you name it, it’s more expensive here.
For example:
Nantucket’s cost of living is 58% higher than the state average and a staggering 132% higher than the national average. Your beach day just turned into a luxury retreat.
Healthcare in Massachusetts is top-notch, with over 97% of residents insured. But high-quality care comes at a premium.
Let’s not forget that this is a state where even Dunkin’ Donuts might cost you more than it does elsewhere. So, what’s fueling these sky-high expenses?
3. Education and Workforce: A Blessing and a Curse
Massachusetts is home to some of the best schools in the nation. Ranked first in quality of school systems and with over 90% of high school students graduating, the state invests heavily in education. And it shows—Massachusetts has the most educated workforce in the country.
But there’s a downside:
An educated workforce attracts high-paying industries like biotech, finance, and software development.
High salaries drive up local prices, from housing to coffee shops catering to six-figure earners.
The state’s intellectual powerhouse status is both its crown jewel and one reason it’s so hard to afford living there.
4. Transportation Woes: When Getting Around Costs a Fortune
Public transportation in Massachusetts, while extensive, isn’t cheap. The MBTA (known locally as “the T”) connects Boston and its suburbs, but maintaining this system in an aging city is costly.
For those who drive:
Gas prices in Massachusetts are consistently above the national average.
Parking in cities like Boston can feel like paying rent for your car, with monthly rates often exceeding $400.
Then there’s the snow. Harsh winters wreak havoc on roads, leading to frequent repairs and higher transportation taxes.
5. Taxes: Paying for Perks
Massachusetts’ nickname, “Taxachusetts,” didn’t come out of nowhere. While it’s a bit exaggerated, the state does have higher-than-average taxes. However, these taxes fund perks like:
- The lowest premature death rate in the country.
- An enviable health insurance system with nearly universal coverage.
So while you’re paying more, you’re also getting more. Think of it as a VIP membership to the state.
6. Nantucket vs. Pittsfield: A Tale of Two Towns
Let’s compare two Massachusetts extremes:
Nantucket: A playground for the ultra-wealthy, it epitomizes luxury living. The cost of living here is 58% higher than the state average. Everything from housing to dining out costs a small fortune.
Pittsfield: On the opposite end, Pittsfield offers relative affordability. But even here, costs exceed the national average by 2%.
This stark contrast highlights the diversity within Massachusetts. Your experience with the state’s expenses can vary dramatically depending on where you go.
7. Is It Worth It? The Trade-Offs of Living in Massachusetts
For all its expenses, Massachusetts offers benefits that few states can match:
- World-class healthcare.
- Top-tier education.
- A robust economy with high-paying jobs.
- Rich history and cultural landmarks.
Living here might mean tightening your budget, but the quality of life often makes up for it. It’s a classic “you get what you pay for” situation.
Affordable Places To Live In Massachusetts
Affordability in Massachusetts might seem rare, but pockets of the state still offer reasonable costs and safe environments. Your definitions of “affordable” and “safe” are key factors to consider, as they vary by individual circumstances.
Among the 50 safest cities in the U.S., 18 are in Massachusetts, including Franklin, Marshfield, Arlington, and Lexington.
These areas combine safety with access to quality amenities. For those who prioritize a mix of affordability and livability, Western Massachusetts is an appealing option. Towns like Northampton and Amherst offer lower living costs and excellent school districts, while Pittsfield remains an affordable option, even if it’s slightly above the national average.
For urban dwellers, Springfield provides an affordable city lifestyle with amenities and quieter neighborhoods. The North Shore and South Shore regions also feature towns like Beverly, Weymouth, and Plymouth, which offer relative affordability with good school systems and proximity to Boston.
Conclusion: Why Is Massachusetts So Expensive?
Massachusetts is expensive because it offers unparalleled amenities, a thriving economy, and an enviable quality of life. But these perks come with trade-offs—higher taxes, steep housing costs, and pricey everyday essentials.
If you’re considering a move to Massachusetts, remember: while it might cost an arm and a leg, you’ll also gain a vibrant, opportunity-rich lifestyle. Just be prepared to budget wisely—or hit up that job posting for a six-figure salary before you pack your bags.
