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average household expense per month new england

January 11, 2025 by movingguru

Key Takeaways

  • Recognizing key factors like housing, transportation, food, healthcare, and utilities can help you gauge the cost of living in New England. Beyond the place itself, budget constraints and personal preferences go a long way in deciding where to live.
  • Median home prices and rental rates are, of course, not the same across New England. Compare these costs with median household income and property tax burdens to find the most affordable regions.
  • Transportation expenses, including fuel and public transit fares, are influenced by commuting distances and vehicle ownership. The cost of public transport alternatives can bring considerable savings.
  • Average grocery costs and dining out expenses differ across states. Keep in mind local farmers’ markets, your dietary needs, and more to maximize your food budget.
  • Healthcare costs, including premiums and out-of-pocket expenses, vary by state. Access to and quality of services are equally important considerations that drive the cost of living.
  • Utility expenses such as electricity, water, and internet can vary by region. By exploring energy efficiency measures and learning how the seasons affect costs, you can get a better handle on these expenses.

Diving into the New England cost of living provides great insight on what you’ll pay for necessities in this historic part of the country. Encompassing states such as Massachusetts, Connecticut, and Maine, New England offers an interesting economic picture.

Housing is a major issue, with a huge difference in price between urban hubs such as Boston and more rural communities. Utilities, groceries, and healthcare are all part of living cost, determining how much needs to be budgeted by residents.

Transportation costs are a statement of both accessibility to public transit in our larger cities and the requirement of owning a private vehicle in our more rural communities. Grasping these factors is key to making smart choices about moving or budgeting wisely.

By examining these costs, we can better navigate the financial landscape of New England, balancing lifestyle preferences with economic realities.

What Influences Cost of Living

Housing Costs

The cost of housing is the most significant factor in the cost of living. For the six state New England region, housing prices account for the majority of the cost of living burden. Take Massachusetts for instance, their median home price is $587,875, one of the most expensive states in the nation.

This is a huge impact to millions of Americans as housing is typically their largest monthly expense. Cities as diverse as Boston have experienced an increase of 5.8% in shelter costs, straining city and household budgets. For renters and buyers, the 28% rule is a useful guide: housing should not exceed 28% of gross income.

Transportation Expenses

Transportation is another major driver. Expenses such as public transportation fares and gas prices contribute significantly to overall living costs. With robust and accessible public transport across the region, riders can save significant costs from not needing to own a car.

Longer commuting distances drive up costs. Those who live further away from their jobs may be forced to pay higher amounts at the pump. By making it easier to avoid some of these expenses, public transit can be a smart financial move for many people.

Food and Groceries

Food expenses are the most pronounced differences among New England states. Grocery expenses vary widely, and meals eaten outside the home are typically more expensive than those prepared at home. Access to local farmers’ markets—where fresh produce may be cheaper—affects food budgets.

Monthly expenditures on food vary by dietary preference, further illustrating the impact of consumer choice on overall food spending.

Healthcare Costs

Healthcare costs, including insurance premiums, are much higher in some states. Here in New England, these costs can vary dramatically. Access to quality healthcare services is a big factor in where we choose to live.

Providers are one of the biggest drivers of local healthcare spending, and some states have more cost-effective providers.

Utilities and Services

Utility expenses, including electricity and water, are different across the country. Climate-smart, energy-efficient practices will help people save money on their monthly bills.

Whether it’s heating or cooling, seasonal differences make a big change in costs.

Average Monthly Expense for Household in Massachusetts

When analyzing the cost of living in Massachusetts, housing is the first major expense that comes into play. As for rent, the average rent in Boston is around $3,758 or for a one-bedroom apartment around $3,040 per month. Instead, many families find themselves living in housing they cannot afford. This challenge is made all the more apparent when you hold it up against the median household income.

Urban areas are often experiencing a housing crisis with high rents. Suburbs are often the only places with lower-cost homes available—with the tradeoff of longer commutes. The combined effects of increased housing demand and shrinking supply mean that the rental market often pushes up prices, as well.

Transportation is another major cost. Low-income urban residents benefit from investments in public transit, which provide a low-cost commuting option. Rural America tends to be more dependent on personal vehicles, which results in greater costs from fuel.

As we all know, on average, gas prices change with the seasons and can greatly affect monthly transportation spending.

Food costs for a household of 3, including both groceries and dining out, fluctuate widely. Cooking at home is almost always cheaper than eating out. Adding in local food market influences on grocery prices and dietary restrictions can further shift the budget.

Healthcare affordability, such as the cost of insurance premiums and out-of-pocket spending on care, are extremely influential factors. Employer-sponsored plans typically provide cost advantages compared to private insurance. Access to quality healthcare plays an important role in keeping the cost of living low.

Utilities are said to run between $120 and $450 monthly, depending on consumption and time of year. Gas and electricity prices are particularly high during the winter.

Find out how your internet service provider choices affect your average monthly expense. Household energy saving tips can lower utility costs.

Compare Household Expenses Across New England States

Housing Costs Comparison

  • Boston, MA: $728,000
  • Hartford, CT: $215,000
  • Providence, RI: $290,000
  • Manchester, NH: $348,000
  • Rental rates differ, average cost of renting a two-bedroom home in New England metro area is $1,494, just over $1,462 national average.
  • Housing supply and demand plays a major role in affordability. When demand is high, prices spike.
  • Increasing prices over the long haul likewise point toward a strong likelihood of future price increases.

Transportation and Commuting Costs

  • Public transport: $70/month
  • Car ownership: $500/month
  • In many places, public transport is a cheaper alternative to vehicle ownership, but this isn’t true everywhere.
  • Longer commuting times increase living costs, influencing relocation choices.
  • Infrastructure varies by region, affecting transport expenses.

Food and Grocery Price Differences

State

Average Grocery Cost

Maine

$300/month

Vermont

$320/month

Massachusetts

$340/month
  • Food prices are usually higher in urban areas compared to rural areas.
  • States with robust local farming have the opportunity to bring their food costs down, helping states that invest in local agriculture.
  • Seasonal changes impact food prices, complicating budgeting.

Healthcare Expenses Across States

  • Massachusetts: $6,500/year
  • Connecticut: $7,000/year
  • New Hampshire: $5,900/year
  • Insurance premiums and out-of-pocket costs vary widely.
  • Availability of services directly impacts price. More competition increases affordability.
  • State policies influence healthcare expenses, impacting budgets.

Utility Costs Variations

State

Average Utility Cost

Vermont

$150/month

Rhode Island

$180/month

Connecticut

$200/month
  • Climate impacts utility costs, especially heating in colder states.
  • Energy efficiency programs can help lower costs.
  • Local regulations play a role in pricing, affecting budgets.

Impact of Lifestyle Choices on Expenses

Urban vs. Suburban Living

Low-income people of color living in urban neighborhoods face increased costs across the board, including states like Massachusetts where housing costs are extremely high. Urban living offers the utmost convenience, getting you closer to work, schools, and healthcare.

In Massachusetts, for example, the average doctor visit is going to cost you about $137.66. Suburban areas may have cheaper housing options, but you could be looking at much longer commute times.

In Boston, the taxes are some of the highest in the country, an overall tax burden of 11.35%, well above the regional average. Factoring in rentals, local amenities, and leisure/work commute times can provide a clearer picture of convenience versus affordability.

Public Transport vs. Private Vehicle

Making public transport a priority over relying primarily on car ownership can reduce costs by thousands of dollars per year. In most urban settings, public transportation is widely available making ownership of a private vehicle unnecessary.

Not only is this option easy on the wallet, but it’s better for the planet. In Maine, where fuel costs average about $3.94, taking public transport can be a more affordable option.

Public transit systems have a significant impact on how much it costs to commute. They also indirectly affect the overall cost of living, especially in states with high income taxes, such as Massachusetts.

Dining Out vs. Home Cooking

If you eat out every day, that makes a difference too. Meal preparation at home can be a cost-effective choice, especially when rental expenses and high sales tax rates, like Massachusetts’ 6.25%, strain budgets.

Home cooking provides an opportunity to eat healthier and save money through budgeting for food. Meal planning and home cooked meals provide a great opportunity to save money and enjoy dining local as a splurge.

This strategy leads to a healthier budget and lifestyle.

Conclusion

At the same time, life in New England is highly rewarding and complex. The costs do differ across the region, with Massachusetts on the expensive end of the spectrum. You’ll quickly discover that lifestyle decisions can greatly affect your cost of living. Whether you choose the vibrancy of the city or the serenity of suburbia, the decision affects your cost of living. It does take planning and prioritizing, deciding what’s important to you and your family. Understanding the process is the best way to contain your potential costs. Keep looking and keep considering your alternatives. Get a handle on these key drivers to ensure you’re making informed choices about life in this dynamic corner of the country. So if you’ve been even mildly considering making the leap, don’t let this opportunity pass you by! Examine your budget closely and take charge of your money.

Frequently Asked Questions

What factors contribute to the cost of living in New England?

The New England regional cost of living, influenced by average rent and monthly housing costs, is predominantly driven by housing, utilities, groceries, and transportation, with state taxes and proximity to major metro areas also playing significant roles.

How much does an average household spend monthly in Massachusetts?

An average household in Massachusetts incurs monthly housing costs exceeding $5,500, including rent, food, transportation, and other expenses.

How do household expenses in New England states compare?

The cost of New England’s household expenses, including average rent and monthly housing costs, differ by state. Massachusetts and Connecticut have higher costs, while Maine and Vermont are known for more affordable housing.

How do lifestyle choices impact living expenses in New England?

Lifestyle choices have a huge impact on monthly expenses. Opting for public transportation can lower average transportation costs, while dining in and living in suburban areas can significantly reduce overall housing affordability. When needs are prioritized over wants, it naturally leads to sticking within budgetary constraints.

Is New England more expensive than the national average?

True, New England does have a high cost of living compared to the national average, driven by high housing prices and elevated average rent in the metro area.

Are utility costs high in New England?

In New England, our electric utility costs are approximately 30 percent higher than the national average, largely due to cold winters that significantly increase monthly housing costs and heating expenses.

What are some cost-saving tips for living in New England?

To save more money in New England, consider using a living calculator to estimate monthly expenses, try carpooling, shopping at farmers’ markets, and using energy-efficient appliances.