The Cost of Living in Cambridge, MA [UPDATED 2021]

Cambridge, MA is the home to Harvard University, MIT, plenty of scientific institutes, and a huge startup scene. So, it's no surprise that it's a somewhat expensive place to live. However, what is the exact cost of living, and how much do you need to make to live here? And, how can you make living in Cambridge less expensive?

If you have more questions about living in Cambridge, you can email me sage@cambridgesage.com.

What does cost of living mean?

We talk a lot about 'cost of living,' but what does it actually mean?

Cost of living is the amount it takes to cover your basic expenses needed to live. This means the total average cost of:

• Housing

• Food

• Transportation

• Taxes

• Health care

The U.S. average cost of living does not take luxury into account. So, your personal cost-of-living may be higher or lower than your neighbors, depending on the additional items that you spend money on.

The cost of living index compares the cost-of-living in your city to the national average. Typically, cost-of-living in major metropolitan areas is higher than in rural areas. However, the index should still account for these outliers.

In a perfect situation, your salary should correlate to the cost of living in your area. For example, if your city's cost of living is 2x the national average, your salary should be 2x the national average as well. This is not always true, but can serve as an estimate when determining whether you can afford to live in a certain city. 

What is the average cost of living in Cambridge, MA?

Let's summarize the various expenses included in cost of living.

Housing cost in Cambridge, MA

According to Payscale.com, housing in Cambridge, MA is 220 percent higher than the national average. The median home price is $1,109,025 and the median rent price is $3,474/month.  The average rent price for a one-bedroom apartment is $3,014/month.

According to the rent affordability calculator, this means you need to make about $10,000/month gross income with no other debts or loans. That's an average salary of $120,000/year. 

It's no secret that this is expensive. Unless you're moving from New York, Washington DC or San Francisco, there are few cities that are more expensive than Cambridge. 

Cambridge is more expensive than most of Massachusetts. Massachusetts residents generally pay 27 percent more in housing costs than the average resident, but remember that includes every neighborhood and town in Masschusetts, many of which are non-urban.

Food cost in Cambridge, MA

Even though housing costs are extremely high in Cambridge, most other costs are closer to the national average. Food, on average, costs just 11 percent more than the national average. Payscale details the prices of groceries as:

• Loaf of bread: $3.69

• Gallon of milk: $2.15

• Carton of eggs: $2.01

• Bunch of bananas: $3.72

• Hamburger: $4.70

Transportation cost in Cambridge, MA.

Many people living in Cambridge commute to Boston for work. The average bus fares, train fares and gas prices are about 14 percent higher than the national average. The lowest gas price in Cambridge is $2.95 according to GasBuddy.

MBTA public transportation fare prices vary on distance, type of transportation, and if you are buying a single, daily or monthly pass.  Here are the standard fares going and coming to Cambridge according to the Massachusetts Bay Transportation Authority:

• Subway (the "T"): $2.40 one way

• Local Bus: $1.70 one way

• Commuter Rail: $2.40 - $13.25 one way -- it's more if you're traveling long distances

An unlimited travel pass is $90.00/month.

Cambridge, MA taxes

Like anywhere, Cambridge residents pay their share of taxes in multiple ways.

• The Massachusetts sales tax rate is 6.25%

• The Cambridge, MA property tax rate is $5.85 per each $1,000 of the assessed value of your home (with a residential exemption).

• Car tax (excise tax) is calculated at $25 per $1,000 of your car's value.

Average cost of health care in Cambridge, MA

According to Payscale, healthcare in Cambridge is 20% higher than the national average. With rising costs of healthcare and the premium health offerings in Massachusetts, healthcare typically has higher premiums and deductibles. However, Cambridge residents can use MassHealth, the state health insurance plans for their coverage.

Ways to make Cambridge, MA living more affordable

Note that in 2019, the median  income in Cambridge was $103,154 for a household and the individual median income was $46,268. This means that very few people are affording the Cambridge cost of living on their own.

• Utilize the MassHousing First-Time Homebuyer Program for home downpayment assistance

• Split living expenses with partners or roommates

• Track your spending habits with budgets and tracker apps

• Consider a smaller living space, like a studio

Like Cambridge, but cheaper

If Cambridge cost of living is unaffordable, these nearby Massachusetts cities offer a lower cost of living:

• Arlington, MA - 1.4% lower

• Somerville, MA - 5.8% lower

• Medford, MA - 11.6% lower

• Malden, MA - 20.4% lower

• Everett, MA - 22.7% lower

Cost of Living Calculator

Need to see if your exact circumstances will allow you to live in Cambridge, MA? Check out Nerdwallet's Cost of Living calculator.