Rank #2 · MA
Massachusetts
Massachusetts ranks second on the back of Greater Boston's housing market, elite-school tuition pressure, and high healthcare costs. Wages are among the nation's highest, but housing alone runs more than 2x the national benchmark.
Cost index
148.4
Housing index
220.9
Median home
$624K
1BR rent
$2,400
Median income
$97K
Top income tax
9%
Sales tax
6.25%
Avg. gas
$3.34
Cost breakdown by category
All values indexed to 100 = US average.
Housing220.9
Groceries109.5
Utilities134.2
Transportation109.6
Healthcare122.1
Why Massachusetts is expensive
- 01Boston metro housing demand from biotech, finance, and 50+ universities.
- 02Restrictive zoning across suburban towns limits new multifamily supply.
- 034% surtax on income above $1M (the 'Millionaires Tax').
- 04Heating costs in long winters and aging housing stock.
Metro snapshots
Boston
Median home ~$865K; 1BR rent ~$3,000/mo.
Cambridge
Among the most expensive zip codes in the US.
Worcester
Median home ~$405K; viable Boston commute via MBTA.
More affordable alternatives in Massachusetts
WorcesterSpringfieldNew BedfordPittsfield
Pro tips
Surviving Massachusetts on a budget
- →MBTA commuter rail towns 40+ minutes from Boston cut housing costs ~30%.
- →Mass Save rebates can offset heat-pump and insulation upgrades.
- →529 plan contributions are state-tax-deductible up to $1K (single)/$2K (joint).