What Is A Good Salary To Live In Boston?

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Are you thinking about moving to Boston and wondering what a suitable salary would be? You’re not alone. Boston is an amazing city—that’s why millions of people from across the world consider moving here every year. Our metro housing market is known to be pricey, as the cost of living in Boston is significantly higher than the national average. However, you get what you pay for; while living in Boston comes at a premium, it’s often well worth the price of admission. So, why is Boston so expensive? While there are several factors, most of it revolves around supply and demand.

The demand for housing in Boston has outpaced supply for decades, leading to higher rents. We also have high home purchase prices compared to the rest of the country. Housing costs are the largest expense you need to consider if you plan to move to Boston. As a rule of thumb, you should budget no more than one-third of your monthly salary for rent. Households need to have money left over after paying rent in order to live comfortably, which is why your rent-to-income ratio should not exceed 33%. You should adopt a leasing and/or sales strategy that matches your income.

That said, there are plenty of high-paying jobs available in Boston! In fact, the city is one of the fastest-growing job markets in the entire country. The majority of these roles are in the financial, technological, medical, and real estate sectors. Boston is a big college town, and universities and colleges do not pay taxes, so they nearly always have an inexhaustible supply of money and endowments that primarily get invested into the local economy. This helps spur innovation at a more rapid pace than in other cities. These exciting new jobs attract young talent from around the world, and this pattern becomes clear the longer you look at Boston.

As colleges expand and increase their enrollment, they spend more lavishly and pump money directly into local endeavors because they have greater resources without paying taxes. This endless innovation and spending cycle keeps the demand for housing high, while limited space keeps supply low. In short, there are lots of exciting and high-paying jobs in Boston, but the demand for housing is intense, keeping rent and property prices high. If you can find a high-paying job and live affordably, you can save a lot of money quickly.

How Much Money Should You Earn To Live In Boston?

You’ve decided that you want to live in Boston—now it's time to determine if it's financially feasible. Smart Asset, a personal finance firm, recently published an article discussing how much it costs to live in America’s biggest cities in 2023. It focused on the income households need in order to pay market rates for a two-bedroom apartment while maintaining a 30% rent-to-income ratio.

According to SmartAsset, if you’re moving to Boston, you should have a household income of $120,900, assuming you rent a two-bedroom apartment with a monthly rent of around $2,821. Of course, this figure can scale up or down depending on the number of bedrooms you need. It is also worth noting, the real-time average rent of a 2 bedroom apartment in Boston is actually $3,225. These housing costs fluctuate with the amount of taxes federal and state governments impose on citizens.

Average Rent Price in Boston

The real-time average rent price for a 1- bedroom apartment in the City of Boston is currently $2,588. To maintain an adequate rent-to-income ratio, you would likely need a minimum household income of $94,109, resulting in a 33% rent-to-income ratio, the highest recommended amount. The chart below breaks down the recommended household income for each apartment size in the city of Boston, based on current average rent prices and a 30% rent-to-income ratio.

If you can’t afford an apartment in some of Boston's more expensive neighborhoods, there are cheaper places to rent in Boston's outer neighborhoods. It’s never a bad idea to seek housing just outside the city with great access to public transportation. Most people look for a commute time of 12 minutes or less from their apartment to a T-station. Rental prices often decrease the further they are from a T-station. If your job requires you to drive a lot and you have a car, you might be able to score a better deal since you won’t be dependent on public transportation. You can also secure a much better apartment and lower your overall cost by getting several roommates. Getting two or three roommates is one of the most cost-conscious things you can do, as you’ll likely save a ton of money through shared expenses and lower overall rent.

A Breakdown of the Cost Of Living In Boston

Why is Boston so expensive? It has a lot to do with the fact that Boston offers a high quality of life. There is also significant upward career mobility and advancement by working in Boston. Many great resumes have been built by being employed in our great city.

The cost of living in Boston is over 50% higher when measured against the national average. The average cost for one person to live in Boston is $3,345 per month according to LivingCost.org. This number increases to $7,700 per month for a family of four. That means Boston ranks in the top 0.4% of the most expensive and most livable cities on the planet. To say we are a fast-paced and constantly evolving city is an understatement. Many people who have left Boston for a decade or longer and come back are amazed by the growth and changes within the Greater Boston Area.

Food Costs To Live In Boston

If you plan to live in Boston, you’re going to need to be prepared for the food costs. In fact, food costs 24% more in Boston than the rest of the United States. So, if you're yearning to live in Boston, you need to know that it’s an expensive place to eat. One of the reasons food prices are high is that the cost of real estate forces operators to charge more to stay in business. The good news is that our food is great! We also have some amazing restaurants that serve up delicious dishes across the area.

Groceries

Numbeo has created a Food Prices in Boston, MA chart that breaks down the costs of various grocery items.According to that research, to live in Boston, you need to budget $549 per person per month for groceries. Of course, this figure is only an average based on a 2,400-calorie-per-day diet. Your personal needs may differ.

The good news is there are zero state taxes on groceries.

Average food costs:

Eating At Or Taking Out From Restaurants

If you want to live in Boston, you also need to factor in dining out at restaurants to fully enjoy the city, including takeout. You can expect to pay anywhere between $30 to $50 per person when dining out in Boston. Of course, you can spend significantly more at a high-end restaurant, such as Menton. You also need to keep in mind that Boston has a 6.25% meal tax for dining out and take out.

Transportation Costs To Live In Boston

Boston is an old and charming city paved with cobblestones. You’re traveling on some of the same streets that our forefathers traveled on. From a historical standpoint, that’s fascinating. From a logistical standpoint, not so much. Many of the streets in Boston were created for horse and carriage traffic, meaning they’re not well-suited for some vehicles, especially large trucks. And our alleyways are often very narrow, which can cause stress if you’re not the greatest driver.

Automobile Parking

Parking can also be an issue depending on the area. However, there are plenty of meters scattered throughout the city. If you plan to live in Boston, expect to pay anywhere from $2 to $3.75 an hour for metered parking, according to the city of Boston’s website. On-street residential parking permits are free, but keep in mind that on-street parking is first-come, first-served, and you’re not guaranteed a space. There are dedicated parking spaces available for rent or purchase throughout the city, with prices varying by location. New technologies are also developing to utilize and share empty private parking spaces, which are often cheaper than city parking.

So, what do you do if you want to live in Boston and plan to bring your vehicle? The best thing to do is work with a parking space specialist such as Boston Pads. That way you won’t need to worry about driving around until you can find a place to park. You also won’t need to worry about stuffing the parking meter with quarters every hour.

Public Transportation

The public transportation system in Boston is known as being one of the best in the United States- it's accessible and convenient. The public transportation system is run by the Massachusetts Bay Transportation Authority, or MBTA for short. The MBTA operates the famous T, commuter rail, buses, trolleys, and ferries. Bus fares run as little as $1.70 per trip. In addition, a one-way subway ride is only $2.40. The commuter rail tickets prices start at $2.40 and run up to $13.25 depending on your destination.

You can purchase a monthly pass for $90 that provides access to all forms of public transportation. That even includes certain commuter rail trips! Let’s hope inflation doesn’t cause these prices to rise higher!

Other Costs To Live In Boston

People who live in Boston also need to factor in other living expenses- recurring bills, healthcare, and entertainment. According to Numbeo’s Cost of Living in Boston chart, utilities cost approximately $198 per month. This is based on one person living in an average size apartment. It is also based on basic utilities such as electricity, heating, air conditioning, water, and garbage removal. That being said, some apartments in Boston includes heat, hot water, and trash removal as part of the amenities.

It should also be noted that the $198 per month utility costs figure does not include cable or Internet. That can run anywhere from $50 per month, to upwards of $250 per month depending on your cable and Internet package. You also need to factor in the monthly cost of a home phone if you choose to have one. In the current day and age, most people skip the home phone and use their cell phones instead.

The Cost of Healthcare

Boston is famous for having some of the best hospitals and healthcare options on the planet. In fact, people travel to Boston from across the country and all over the world to receive advanced care options.

The cost of healthcare in Beantown is on the high side. Healthcare costs are approximately 36% higher when compared to the national average. That can be a difficult pill to swallow if you’re paying for the expenses out of pocket. The good news is that many of the jobs in Boston include a high paying salary and healthcare insurance.

Let’s take a look at some of the average healthcare costs in 2024:

The Cost of Entertainment

Boston offers a great deal of free entertainment options. This holds especially true when the weather is warm- you can take a stroll on the Freedom trail or visit the Boston Public Gardens. The Boston Commons is also a great place to spend time year- round. There are often events held at the Boston Commons, from plays to concerts. You can check out a schedule of upcoming events here.

Boston also offers entertainment options typical of a major city- movies, Broadway shows, sports games, and much more. If you enjoy going to the movies, the average price of admission is approximately $20 per person.

Want to Live in Boston? It's Worth It.

In conclusion, Boston is an incredible city. That’s why approximately 685,000 people choose to live in Boston on a yearly basis. Boston is home to endless innovation. The job market is strong - Massacusetts has a 4.6% unemployment rate.  There are also many world-renowned museums, restaurants, and sites to see. Boston’s appeal is increasing each and every year.

The bottom line is that there is something for everyone in the city of Boston. However, if you would like to live in Boston it’s important to ensure that you have the financial stability to keep up with the cost of living. The recommended $94,109 per household to live in an average 1 bedroom apartment in the city is just that- a recommendation. Talk to a real estate agent and see if they have better deals on homes. We have 1 bedroom apartments available in Greater Boston for $1,800/ month! If you can budget your other expenses well, that means you could afford to live in Boston with a household income of $64,800. Explore your options! You will also find great expense improvements by finding two or more roommates. While a 1 bedroom apartment for $1800 might be an average apartment; a three bedroom for $5,000 can often be an incredible apartment. We have also seen some absolutely stunning 4 bedroom apartments in the $6,000 - $7,000 range. When it comes to housing solutions in Boston; never be afraid to think outside the box.

For more information about Boston in general or the current housing situation, please contact Boston Pads today. Our dedicated team of real estate professionals will help you find the perfect apartment or property that will not only fit your needs, but also fit your budget. We look forward to working with you.