How affordable is Massachusetts in 2026? Federal and state data show a state where incomes run well above the national typical household, but where housing, electricity, child care and health insurance cost even more. This explainer pulls together the latest figures from the Bureau of Economic Analysis, the Census Bureau, the Bureau of Labor Statistics, the Energy Information Administration and state agencies to show where the Massachusetts cost of living stands and what state government has already enacted in response.
Key facts: Massachusetts affordability in 2026
- Overall price level: 5.8% above the U.S. average; rents 28.1% above (BEA, 2024)
- Median home value: about 5.8 times median household income, vs. 4.4 nationally (Census ACS 2024)
- Renters spending 30% or more of income on housing: 52.4% (Census ACS 2024)
- Home electricity: 30.48 cents per kWh vs. 18.16 cents nationally (EIA, August 2026)
- Average employer family health premium: $28,151 in 2024, the highest in the U.S. (Health Policy Commission)
Massachusetts cost of living vs. the national average
The Bureau of Economic Analysis measures price levels across states with its Regional Price Parities, where the national level equals 100. Massachusetts scored 105.757 for all items in 2024, according to the agency’s February 2026 release, as published in FRED. The gap is concentrated in housing. The state’s parity for rents was 128.068, while goods (98.820) were slightly below the national level and other services (102.852) were slightly above. BEA’s next state release is scheduled for Dec. 10, 2026.
Prices are still rising. In the Boston area, the BLS consumer price index for September 2026 showed rent of primary residence up 4.3% from a year earlier and energy up 21.7%, led by a 38.3% jump in gasoline. Food at home rose 3.2%.
Wages and median household income
Massachusetts households earn more than most. The Census Bureau’s Current Population Survey estimates, published by FRED, put the state’s real median household income at $118,500 in 2025, compared with $87,460 for the United States. That is about 35% higher, a wider margin than the 5.8% gap in overall prices.
Averages hide how much a household needs. The MIT Living Wage Calculator, last updated Feb. 15, 2026, estimates that a single adult with no children needs $30.58 an hour to cover basic costs in Massachusetts, about twice the $15.00 state minimum wage. A single parent with one child needs $58.26 an hour, or $121,175 a year before taxes. Many occupations fall short of that figure: MIT lists typical annual pay of $42,040 in food preparation and serving and $44,900 in health care support.
Housing costs vs. income
The Census Bureau’s 2024 American Community Survey one-year estimates (table B25077 and table B19013) put the median value of an owner-occupied Massachusetts home at $607,400 and the median household income at $104,828. That is a price-to-income ratio of about 5.8, compared with about 4.4 nationally ($360,600 against $81,604).
Renters face a similar squeeze. Of the roughly 1 million Massachusetts renter households for which the survey computed a cost ratio, 52.4% spent 30% or more of household income on gross rent, the federal threshold for being “cost-burdened,” according to table B25070. About 26.0% spent half or more. Nationally, the shares were 51.8% and 26.1%, so the burden on Massachusetts renters is close to the U.S. rate even though rents are higher, because incomes are also higher. For rents and home values by county and city, see our ranking of the cheapest places to live in Massachusetts.
Electricity and energy costs
Energy is where Massachusetts stands furthest from the national norm. The EIA’s Electric Power Monthly, released Oct. 23, 2026, reported an average residential price of 30.48 cents per kilowatt-hour in Massachusetts in August 2026, nearly unchanged from 30.55 cents a year earlier. The U.S. average was 18.16 cents, so Massachusetts households paid about 68% more per unit. The New England average was 28.31 cents. Heating help for this winter is covered in our guide to Boston heating bills.
Child care and health insurance
MIT’s calculator estimates annual child care costs of $23,448 for one child and $41,712 for two children in Massachusetts. In the Boston-area CPI, the index for tuition, other school fees and child care rose 4.3% over the year to September 2026.
Health coverage is the other large line item. The state Health Policy Commission reported that Massachusetts now has the highest average family premium for employer-based coverage in the country: $26,355 in 2023 and $28,151 in 2024. Including out-of-pocket spending, the commission said the average cost of coverage for a family topped $32,000 in 2024. Total health care spending per resident grew 8.6% from 2022 to 2023, to $11,153, above the state’s 3.6% cost growth benchmark. The commission’s annual cost trends reports track these figures each year.
Population and out-migration
The Census Bureau’s Vintage 2025 estimates, released in January 2026, put the Massachusetts population at 7,154,084 on July 1, 2025, up 15,524 from a year earlier. According to the UMass Donahue Institute’s summary of those estimates, about 33,340 more people moved from Massachusetts to other states than moved in, up from 19,195 the year before. Net international migration of 40,240 and a natural increase of 8,419 (68,055 births minus 59,636 deaths) kept the total growing. International migration fell sharply from 77,957 in 2024, which the Census Bureau described as part of a historic national decline.
What the state has enacted
Affordable Homes Act (2024). Signed Aug. 6, 2024, as Chapter 150 of the Acts of 2024, the law authorizes $5.16 billion over five years and 49 policy initiatives, according to the governor’s office. It includes $2 billion to repair and modernize more than 43,000 state-aided public housing units and allows accessory dwelling units under 900 square feet by right on single-family lots. The administration projected the law would support more than 65,000 homes and estimated 8,000 to 10,000 new accessory units over five years. The Executive Office of Housing and Livable Communities oversees implementation.
2023 tax relief package. Signed Oct. 4, 2023, the $1 billion package raised the rental deduction cap from $3,000 to $4,000, doubled the Senior Circuit Breaker credit from $1,200 to $2,400 with inflation indexing, raised the state earned income tax credit from 30% to 40% of the federal credit, lifted the estate tax threshold from $1 million to $2 million and cut the short-term capital gains rate from 12% to 8.5%. It also raised the low-income housing tax credit cap from $40 million to $60 million a year.
Child and Family Tax Credit. The same law removed the two-dependent cap. The Department of Revenue says the credit is $440 for each child under 13, disabled dependent or spouse, or dependent age 65 or older for tax year 2024 and after, with no limit on the number of qualifying individuals. Our guide to Massachusetts income, sales and property taxes explains the rest of the tax system, and our Boston vs. NYC cost of living comparison puts the capital next to New York.
Massachusetts vs. U.S.: affordability data table
| Measure | Massachusetts | United States | Source |
|---|---|---|---|
| Regional price parity, all items (2024) | 105.8 | 100.0 | BEA |
| Regional price parity, rents (2024) | 128.1 | 100.0 | BEA |
| Real median household income (2025) | $118,500 | $87,460 | Census CPS via FRED |
| Median home value (2024) | $607,400 | $360,600 | Census ACS 1-year |
| Home value-to-income ratio (2024) | 5.8 | 4.4 | Census ACS 1-year |
| Renters paying 30%+ of income (2024) | 52.4% | 51.8% | Census ACS 1-year |
| Residential electricity, cents/kWh (Aug. 2026) | 30.48 | 18.16 | EIA |
Methodology: Ratios were calculated by The Boston Report from the published medians. Rent-burden shares exclude households for which the Census Bureau did not compute a ratio. ACS one-year figures differ from the five-year averages used in some of our other coverage. Last updated Oct. 25, 2026.
Frequently asked questions
Is Massachusetts more expensive than the national average?
Yes. BEA’s 2024 Regional Price Parities put overall Massachusetts prices 5.8% above the national level and rents 28.1% above it.
How much do Massachusetts residents pay for electricity?
The average residential price was 30.48 cents per kilowatt-hour in August 2026, compared with 18.16 cents nationally, according to the EIA.
Are people leaving Massachusetts?
On net, yes, to other states: Census estimates show 33,340 more people left for other states than arrived in the year to July 2025. International migration and births kept the overall population growing.
What is the Massachusetts Child and Family Tax Credit?
It is $440 per qualifying child under 13, dependent 65 or older, or disabled dependent or spouse, with no cap on the number claimed, according to the Department of Revenue.
Related reading
Sources
- U.S. Bureau of Economic Analysis: Real Personal Consumption Expenditures and Real Personal Income by State, 2024
- FRED: Regional Price Parities, All Items for Massachusetts
- U.S. Census Bureau: ACS 2024 1-year, Gross Rent as a Percentage of Household Income (B25070)
- U.S. Census Bureau: ACS 2024 1-year, Median Value (B25077)
- U.S. Census Bureau: ACS 2024 1-year, Median Household Income (B19013)
- FRED: Real Median Household Income in Massachusetts
- U.S. Bureau of Labor Statistics: Consumer Price Index, Boston-Cambridge-Newton, September 2026
- U.S. Energy Information Administration: Electric Power Monthly, Table 5.6.A
- Massachusetts Health Policy Commission: 2025 Cost Trends Hearing Recap
- Mass.gov: Governor Signs Affordable Homes Act
- Mass.gov: Governor Healey Signs First Tax Cuts in More Than 20 Years
- Massachusetts Department of Revenue: Child and Family Tax Credit
- UMass Donahue Institute: State-level Population Estimates for Massachusetts
- MIT Living Wage Calculator: Massachusetts
Additional sources
- BEA: Regional Price Parities by State and Metro Area
- FRED: Real Median Household Income in the United States
- U.S. Census Bureau: U.S. Population Growth Slows Due to Historic Decline in Net International Migration
- Massachusetts Legislature: Acts of 2024, Chapter 150
- Massachusetts Health Policy Commission: Annual Cost Trends Reports
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