F
56%
Overall NAT. AVG.
22%
Goods & Services NAT. AVG.
140%
Housing NAT. AVG.
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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 Dedham Massachusetts National
Cost of living156133100
Goods & Services122122100
Groceries105105100
Health care113113100
Housing240165100
Transportation118118100
Utilities134134100

An Overview of Cost of Living in Dedham, MA

Are you thinking about relocating, but curious about the potential cost of living in Dedham? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Dedham stands at 156, making it 56% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you value affordability in your search for a new place to live, Dedham may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Dedham falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs are a very significant part of the Dedham cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 140.5% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

The things you purchase regularly, like clothes, haircuts, movie tickets and gym memberships, can make a big dent in your budget and make up 33% of the cost of living index. Unfortunately in Dedham, these items will cost you 21.6% more than what's considered the norm, making it a more expensive place to call home.

Is Dedham Affordable?

Is Dedham affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Dedham, the median home price is 161.2% higher than the national average and monthly rent prices are 92.1% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Dedham boasting a median household income of $101,780, 84% higher than the national average.

What Factors can Influence the Cost of Living in Dedham?

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Dedham, the groceries index is 5.3% higher than the national average.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Dedham, the general sales tax rate starts at 6.25%, and income tax rates begin at 5%.

Where is the Data From?

The cost of living in Dedham, 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.

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Cost Of Living Quick Facts

  • The cost of living in Dedham is 17% higher than the Massachusetts average
  • The cost of living in Dedham is 56% higher than the national average
  • Dedham housing is 140% 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 Dedham

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Compare Dedham, MA Cost of Living

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      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$126,636$10,553$2,955$3,799
      Renters$52,007$4,334$1,213$1,560
      To approximate the cost of living and the housing affordability in Dedham, MA, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Dedham have a median income of $126,636. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,955 per month to avoid calamity and poverty. The renters in the city have an income of about $52,007, which would make their monthly maximum allowable rental costs $1,213.

      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 Dedham 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 Dedham 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 Dedham 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 Dedham National avg. Difference
      Home Price $482,500.00$184,700.00161.2%
      Avg. Mortgage Payment $4,745.89$2,346.69102.2%
      Apartment Rent $1,823.00$949.0092.1%

      Transportation

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

      Utilities

      Item Dedham 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%
      Brockton, MA95,74012726.6%
      Holbrook, MA11,05113130.6%
      Maynard, MA10,90013635.8%
      Dedham, MA25,33015655.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Edwardsville, IL25,3321021.7%
      Candiac, QC25,341n/a 
      Kingsville, TX25,3678713.4%
      Clinton, IA25,2908614.4%
      Mount Pleasant, MI25,2908911.3%
      Dedham, MA25,33015655.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.