How Expensive Is It to Live in Salem, Massachusetts?

The cost of living reflects the financial outlay needed to maintain a standard of living in a specific area. It covers fundamental expenses like housing, food, transportation, and healthcare. Understanding these costs provides insight into a location’s affordability and helps financial planning. Various economic factors, including supply, demand, inflation, and availability of goods and services, influence these expenses. Assessing these elements is a primary consideration for anyone considering relocation or evaluating their financial situation.

Housing Expenses

Housing expenses typically represent the most significant portion of a household’s budget in Salem, Massachusetts, for both renters and homeowners. Rental rates vary by unit size. A studio apartment generally costs around $1,635 per month. A one-bedroom apartment averages about $2,204 per month. Larger two-bedroom units can range from approximately $2,660 to $3,209 monthly.

The housing market for homeowners in Salem reflects significant investment. The median listing home price in Salem was approximately $587,000 in July 2025, with the median sold price around $580,000. Other data indicates average home values around $618,727. These figures are influenced by factors such as proximity to downtown, historical significance, and market demand.

Property taxes are a recurring cost for homeowners, calculated based on assessed value and the city’s tax rate. For Fiscal Year 2025, the residential tax rate in Salem is $11.34 per thousand dollars of assessed value. For example, a home assessed at $500,000 would incur an annual property tax of $5,670.

Mortgage payments add a substantial component to homeownership costs, influenced by interest rates, purchase price, and down payment. As of mid-2025, a 30-year fixed mortgage rate in Massachusetts averaged around 6.50% to 6.65% APR, while a 15-year fixed rate was closer to 5.49% to 5.79% APR. The average monthly mortgage payment across Massachusetts was about $4,745.89 in July 2024.

Essential Utilities and Household Services

Beyond housing, residents in Salem incur costs for essential utilities and household services. Electricity expenses vary based on usage and provider, as Massachusetts operates within a deregulated electricity market. Average monthly residential electric bills in Salem typically range from $134 to $150. Natural gas, primarily used for heating and cooking, also contributes to utility costs. Massachusetts experiences some of the highest natural gas prices in the nation, with residential rates around $25.41 per thousand cubic feet as of May 2025.

Water and sewer services are billed based on consumption. Effective July 1, 2025, residential water is charged at $4.82 per 100 cubic feet, while sewer rates are $8.28 per 100 cubic feet. A family of four might see monthly water and sewer bills ranging from $45 to over $120. For internet services, monthly costs can start as low as $30 for basic plans, with average prices ranging from $80 to over $100 depending on desired speeds and providers. Trash collection fees are about $25.79 per unit monthly for non-owner occupied residential properties.

Food and Groceries

Food-related expenses in Salem encompass groceries for home cooking and dining out. For groceries, a single individual might budget around $440 per month, while a household with two adults could spend approximately $360 per month, increasing to $600 or more for families with children. Prices for common staples reflect the regional cost of living, with a liter of milk costing around $1.10, a dozen eggs approximately $4.33, and a pound of chicken fillets about $6.50.

Dining out in Salem offers a range of price points. An inexpensive meal at a casual restaurant typically costs between $20 and $25 per person. For fast food, a combo meal can be found for around $10 to $11. A three-course meal for two at a mid-range restaurant could cost anywhere from $50 to $100, with more upscale dining exceeding $100.

Transportation Costs

Transportation costs in Salem vary based on reliance on personal vehicles versus public transit. Gasoline prices typically range from $2.70 to $3.00 per gallon. Car insurance premiums average between $111 and $300 monthly. Parking includes metered on-street spaces and various garages. Hourly rates for garages range from $0.75 to $1.50, and residents may purchase annual parking permits for $10.

Salem is well-served by the Massachusetts Bay Transportation Authority (MBTA), offering bus and commuter rail services. Local bus fares range from $1 to $5 for a one-way trip. The commuter rail connects Salem to Boston’s North Station, with fares determined by travel zones; a $10 weekend pass offers unlimited rides. The city boasts high walkability, with a Walk Score of 99 out of 100, reducing the need for a personal vehicle for local travel.

Healthcare and Personal Spending

Healthcare expenses in Massachusetts, including Salem, tend to be higher than the national average. Health insurance premiums vary based on plan type and coverage. For individual plans, residents might pay between $300 and $700 per month, with benchmark plans averaging around $419 monthly. Employer-provided single coverage can average around $715 per month. Massachusetts law mandates health insurance coverage, and non-compliance can result in annual fines ranging from $288 to $2,100, depending on income.

Beyond premiums, out-of-pocket healthcare costs are a substantial financial consideration. Massachusetts residents often pay thousands annually in deductibles and copayments. For instance, an emergency room visit for an adult can cost between $580 and $700, while a child’s ER visit ranges from $425 to $550. These costs can lead some residents to defer necessary medical or dental care.

Personal spending encompasses a variety of other daily living expenses. Personal care items, such as toiletries and cosmetics, are available at various price points from mass retailers to specialized boutiques. Clothing costs vary widely depending on shopping preferences, from budget-friendly options at chain stores to more expensive items at local boutiques specializing in unique styles.

Entertainment in Salem offers affordable and higher-priced options. A general admission movie ticket typically costs $10, with discounted rates for children, seniors, and matinee showings. Many of Salem’s historical attractions, such as museums and tours focusing on the Witch Trials or maritime history, have admission fees often starting around $15 to $22. Numerous historical sites and parks can be enjoyed for free, and gym memberships range from $15 per month at larger chains to over $150 per month at specialized local facilities.