Boston has earned its place as the seventh most expensive city in the world when it comes to housing costs, as reported in a recent analysis by Bloomberg. This high cost of living in Boston is attributed to several factors.
Housing Market
The housing market in Boston is undeniably one of the priciest in the nation. For instance, a studio apartment within the city can easily start at a staggering $400,000 and climb even higher. Given this steep price tag, it’s no surprise that many prospective buyers opt to rent instead. The sales market is also fiercely competitive, marked by multiple bids and properties often selling above their asking price. In such a climate, renting proves to be a more feasible option for many individuals than attempting to purchase a home.
Find a Roommate
A significant portion of Boston’s population lives with roommates to help defray housing costs. Consider this scenario: renting a 2-bedroom apartment that costs between $2,800 and $3,200 per month, and sharing the rent with one or two roommates significantly reduces the financial burden on each person. Studies indicate that tenants in Boston typically allocate around 30% of their income to rent. This is why many are willing to pay upwards of $2,500 for a one-bedroom apartment, particularly when they can split the rent with others.
Living Off Campus
Boston’s landscape is dotted with more than 30 universities, colleges, and community colleges, drawing thousands of students in search of housing. As dormitory costs continue to rise, students often find it more economical and comfortable to live off-campus, either alone or with roommates. Moreover, some educational institutions are grappling with dorm room shortages, leaving students with no option but to seek off-campus accommodations. The demand for off-campus housing among students is ever-present.
Commuting in Boston
Commuting in and out of Boston has become increasingly challenging over the years. With the job market flourishing in the city, more individuals are relocating to Boston for career opportunities. Living within 10 miles of Boston can entail commute times exceeding 60 minutes each way. However, Boston’s robust public transportation system makes it convenient for residents to forgo owning a car. Many people are willing to pay a premium in rent to reside closer to their workplace and avoid the stress of heavy traffic.
Despite the high cost of living, Boston remains a remarkable city to call home. It boasts a rich history and stands as one of the oldest cities in the United States. Boston is also a hub of higher education, with numerous prestigious colleges and universities that contribute to a highly educated population. The city offers a plethora of attractions, from Quincy Market and Boston Seaport to Boston Common, Newbury Street, Downtown Boston, and renowned breweries like Harpoon and Sam Adams.
If you’re considering renting an apartment or purchasing a house in Boston, don’t hesitate to reach out to us. We are a full-service real estate agency specializing in rentals, sales, and investment properties, and we’d be delighted to assist you in finding your ideal Boston abode.
