The Wildly Picturesque New England State That Has One Of The Highest Costs Of Living In America

It's likely that people could accurately predict some of the most expensive states in the United States. Of course, California is up there, home to real estate whoppers like the Hollywood Hills and Silicon Valley. Living in New York isn't cheap, either, if only because of the bonkers prices in New York City. As a remote, sought-after, tropical island, Hawaii is the most expensive state, but right after it comes an Eastern Seaboard favorite within easy reach of clam chowder, Irish pubs, lovely autumn foliage, Cape Cod, and the Red Sox. Yes, we're talking about little ole' Massachusetts. 

Folks who live in Massachusetts can attest to its virtues, particularly on the scenic, mountainous hiking front. The Berkshires stand out in this regard, full of well-trodden paths and hidden trails to mesmerizing waterfalls. Meanwhile, quaint and quirky towns like Goshen dot the state, along with its bigger metropolises, like the ultra-historical and tourist-heavy Boston. The state's capital is full of as much greenery as it is neighborhoods with vibrant murals, bustling markets, and music venues. If you've got the money, that is.

Folks who live in Massachusetts also know that living costs have gotten way out of hand. A market analysis by Zillow reveals that the median home price in Massachusetts rose from around $400,000 in 2017 to about $660,000 in 2025. While housing costs account for the biggest part of Massachusetts' unaffordability, a perfect storm of other factors contributes to it, as well, including its workforce composition, taxes, energy prices, and even parking fees. 

In a nutshell, Massachusetts is a victim of its own success. After Washington, D.C., Massachusetts has the second-highest percentage of people in the country with college degrees, which increases demand for high-salaried jobs, therefore driving up local costs. It also has top-tier universities like MIT, altering the composition of the workforce to cater to those in higher-paying industries like tech and finance. Plus, employees contend with an income tax rate of 5%, while those earning more than $1 million a year have a rate of 9%.

At the same time, the number of millionaires in Massachusetts has gone up dramatically in recent years, with their net worth rising from $1.6 trillion to $2.2 trillion from 2022 to 2024, which in turn escalates costs. On top of this, Massachusetts' energy costs are higher than the national average. In Boston, parking can also go past $400 a month. Add to these factors the state's beauty, plus its historical and cultural richness, and you create a perfect storm of high-cost factors.

But travelers can still get the most out of Massachusetts without dealing with any of its residents' woes (which are causing tons of people to flee the state). The state has 16 distinct national parks, blending natural beauty and historical value. Massachusetts is generally saturated in beautiful outdoor spaces and adjacent bodies of water to explore, like the Wachusett Reservoir (just watch out for the snakes). Hiking these places, plus strolling through the historic downtowns of Plymouth or Salem, will give you the colonial New England fix you need with none of Massachusetts' high living costs.