Cost of Living in Needham, MA

Population 32,059 · Massachusetts · Data vintage 2023

299
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Needham's housing market reflects its status as a high-earning metro: $1.1 million for a typical home, 276% above the US median, paired with household incomes around $212,241 that put it in the upper third of the state.

Needham sits roughly 9 miles southwest of Cambridge — close enough that regional housing and labor patterns are shaped largely by the larger market. Median home values run roughly 10% higher than Cambridge's $1 million.

Cost Overview

Housing 376
Rent 184

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Needham

The median home value in Needham is $1,146,000 — 276% above the national median of $305,000. Median rent runs $2,412/month, 84% higher than the national median of $1,314/month. The median household income of $212,241/year is 185% higher than the US median of $74,580. The local unemployment rate is 4.5%, below the national average of 4.8%. Massachusetts's top state income tax rate is 9.0% and the combined sales tax is 6.3%. Overall, Needham has a cost of living index of 299 versus the US average of 100, meaning it is 199% more expensive.

🏠 Housing

Median Home Value
$1,146,000
276% above avg
Zillow Home Value
$1,494,789
Zillow ZHVI
Median Rent
$2,412/mo
84% above avg
Zillow Rent
$3,247/mo
Zillow ZORI
Price-to-Rent Ratio
39.6x
Favors renting
Property Tax Rate
1.2%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$1,429
1 BR
$1,498
2 BR
$1,963
3 BR
$2,405
4 BR
$2,811
Owner-occupied 84.3%
Renter-occupied 15.7%

💰 Estimated Monthly Budget

Rent median rent
$2,412
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $3,026/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
31.5 min
17% above avg
Gas Price
$3.145/gal
0% below avg
Work From Home
28.9%

Commute Mode

Drove alone
57.5%
Carpooled
3.8%
Public transit
7.5%
Walked
1.9%
Work from home
28.9%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax 9.0%
Total Sales Tax 6.3%
State rate 6.3%
Avg local rate 0.0%
Property Tax 1.2%

💼 Income & Employment

Median Household Income
$212,241
185% above avg
Per Capita Income
$100,288
Unemployment Rate
4.5%
6% below avg
Poverty Rate
3.8%
Labor Force Participation
67.7%

🎓 Education

Bachelor's degree+ 29.7%
Graduate degree 51.2%

👥 Demographics

Median Age 43
Male median age 43.9
Female median age 41.9

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 41 — Good
75.6%
Good air days/yr
136
Max AQI recorded
135
PM2.5 days
229
Ozone days

🏫 Schools

NCES CCD 2019 — public school district data

99%
4-Year Graduation Rate
13.5:1
Student-teacher ratio
8
Public schools
5,706
Total enrollment

Frequently Asked Questions

What is the cost of living in Needham, MA?

Needham has a cost index of 299 (100 = national average). It is 199% above the national average.

What is average rent in Needham, MA?

The median gross rent in Needham is $2,412 per month based on 2023 Census data.

What is the average home price in Needham?

The median home value in Needham is $1,146,000 according to Zillow and Census data.

What is the median income in Needham?

The median household income in Needham is $212,241 per year (2023 ACS 5-year estimates).

What is the sales tax in Needham, MA?

The combined state and local sales tax rate in Needham is 6.3%. The Massachusetts state income tax top rate is 9.0%.

Is Needham, MA affordable?

Needham is above average in cost of living, with an index of 299 — about 199% higher than the national average.