F
110%
Overall NAT. AVG.
22%
Goods & Services NAT. AVG.
321%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Newton Massachusetts National
Cost of living210133100
Goods & Services122122100
Groceries105105100
Health care113113100
Housing421165100
Transportation118118100
Utilities134134100

An Overview of Cost of Living in Newton, MA

Knowing the cost of living in Newton allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Newton stands at 210, marking it 110% higher than the national average.

The cost of living in Newton is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Newton falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs significantly influence the Newton cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 320.8%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Newton, you you will have to spend 21.6% more than average when compared to the typical prices for these items, making it a more expensive place to live.

What Do Locals Say About the Cost of Living in Newton?

The real experts on a city are its residents. That's why we reached out to 8 locals to get their views on the cost of living in Newton. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 25% found it budget-friendly with decreasing prices, while 75% said it's simply not affordable as prices have continued to rise.

Is Newton Affordable?

Is Newton an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Newton, the median home price is 415.5% higher than what most folks pay across the country, and monthly rent prices are 99.9% higher than the usual rates. Income levels in Newton come in at $154,398, which is 179.1% higher than the national average.

What Factors can Influence the Cost of Living in Newton?

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Newton starts at 6.25% and the income tax rates start at 5%.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Newton, the utilities index registers at 33.9% higher than the national average.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Newton, the housing index stands at 320.8% higher than the national average.

Where is the Data From?

The cost of living in Newton, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

New Real Estate Listings in Newton Area
Search Homes for Sale in Newton, MA

Cost Of Living Quick Facts

  • The cost of living in Newton is 58% higher than the Massachusetts average
  • The cost of living in Newton is 110% higher than the national average
  • Newton housing is 321% higher than the national average
  • Massachusetts general sales tax is 22% higher than the national average
  • Massachusetts state income tax is 93% higher than the national average

Most Affordable Places to Live in and Around Newton

See all the best places to live around Newton

Compare Newton, MA Cost of Living

      vs
      How would you rate the cost of living in Newton?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Newton?
      Write a review to give others more information about this area.
      See all Newton poll results

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$188,911$15,743$4,408$5,668
      Renters$91,342$7,612$2,131$2,741
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Newton, MA, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Newton, homeowners have a median income of $188,911. Using that number, a maximum of $4,408 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $91,342, which means there is a maximum of $2,131 to be spent on the costs of renting a home or apartment.

      Massachusetts Sales Tax

      State General Sales Tax With Max Surtax
      Massachusetts 6.25% 6.25%

      Massachusetts Income Tax

      State Income Tax (Low) Income Tax (High)
      Massachusetts 5% 9%

      Goods & Services

      Item Newton National avg. Difference
      Haircut $43.72$24.2680.2%
      Beauty Salon $65.56$45.5643.9%
      Toothpaste $3.53$3.704.7%
      Shampoo $1.49$1.2816.4%
      Movie $15.49$12.1327.6%
      Bowling $29.33$18.0063.0%

      Groceries

      Item Newton National avg. Difference
      Ground Beef $5.48$5.846.2%
      Fried Chicken $1.45$1.578.0%
      Milk $4.76$4.671.9%
      Potatoes $4.99$4.931.1%
      Pizza $12.52$12.093.6%
      Beer $10.21$10.411.9%

      Health Care

      Item Newton National avg. Difference
      Optometrist $123.17$125.682.0%
      Doctor $157.89$135.7816.3%
      Dentist $149.22$113.2931.7%
      Ibuprofen $11.39$10.656.9%
      Lipitor $384.69$468.6017.9%

      Housing

      Item Newton National avg. Difference
      Home Price $952,100.00$184,700.00415.5%
      Avg. Mortgage Payment $4,745.89$2,346.69102.2%
      Apartment Rent $1,897.00$949.0099.9%

      Transportation

      Item Newton National avg. Difference
      Gasoline $3.43$3.460.9%
      Tire Balancing $97.39$59.9262.5%

      Utilities

      Item Newton National avg. Difference
      All Electricity $302.72$193.9956.0%
      Phone $187.85$192.252.3%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Southfield, MA011919.2%
      Randolph, MA33,52612626.4%
      Holbrook, MA11,05113130.6%
      Lynn, MA94,20113635.5%
      Maynard, MA10,90013635.8%
      Newton, MA88,322210109.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Reading, PA88,3338910.6%
      Champaign, IL88,288964.0%
      Conroe, TX88,3691000.4%
      Palm Coast, FL88,2221077.2%
      O'Fallon, MO88,1321043.5%
      Newton, MA88,322210109.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.