Is It Expensive to Live in Cape Cod?

Cape Cod, known for its charming villages, scenic beaches, and relaxed way of life, is often viewed as a desirable place to reside. This appeal often comes with a perception of high living costs. Many factors influence the expenses of making Cape Cod a permanent home, beyond its aesthetic appeal. Understanding these financial components is important for anyone considering a move.

Housing Expenses

Housing represents the most substantial financial commitment for residents on Cape Cod. The region’s limited land availability and strong demand from year-round residents and seasonal visitors significantly influence property values and rental rates. As of May 2025, the median home price on Cape Cod reached approximately $797,912. This figure indicates a substantial investment for homeownership.

The housing market is highly competitive, with homes often selling quickly, sometimes within 15 to 22 days. This quick turnover reflects strong buyer interest. Single-family homes constitute the majority of housing units in Barnstable County, accounting for about 87% of properties. Multi-family apartment buildings are less common, and this scarcity contributes to increased competition and higher prices.

For those seeking rental accommodations, the market also presents challenges due to high demand for both seasonal and year-round properties. Monthly rental costs for apartments on Cape Cod vary. A 1-bedroom apartment might range between $1,077 and $2,000 per month. Studio apartments can start around $900, while a 3-bedroom apartment could cost up to $2,450. Year-round rentals are particularly scarce and expensive due to intense competition from the seasonal vacation rental market.

Daily Living Expenses

Beyond housing, daily living costs on Cape Cod tend to be higher than national averages. Utility expenses contribute significantly to a household’s budget. Electricity rates, for instance, average around 33 cents per kilowatt-hour, among the highest in the nation. Monthly electricity bills can often exceed $289. Other energy costs, such as heating, can range from $1,000 to $3,000 annually, primarily due to the region’s reliance on oil and propane for heating during colder months. Water bills typically fall between $50 and $100 per month, though some rural areas may use private wells and septic systems, which can reduce municipal water costs.

Grocery prices on Cape Cod are approximately 10.3% above the national average. Residents sometimes travel off-Cape for more affordable grocery options. Dining out can also be more expensive, particularly during peak tourist season. Transportation expenses are another consideration, as vehicle ownership is generally necessary given limited public transportation. Gasoline prices on Cape Cod often exceed the national average, fluctuating between $3.50 and $4.50 per gallon. Car insurance premiums vary, with an average around $42 per month, potentially ranging from $19 to $66. The Cape Cod Regional Transit Authority offers bus services with a monthly pass costing around $60.

Healthcare costs in Massachusetts are among the highest in the country, impacting residents on Cape Cod. The average annual cost of health insurance for an individual in Massachusetts is approximately $8,068, while a family of four might incur around $32,272 annually. Average monthly premiums for a Bronze plan are around $468 for a 30-year-old, though they can range from $442 to $577 depending on location within the state.

Local Taxation and Fees

Local taxation, particularly property taxes, constitutes a substantial recurring expense for homeowners on Cape Cod. In Massachusetts, property taxes are assessed based on a property’s fair market value. Assessors in each community determine this value, and a tax rate (mill rate) is then applied per $1,000 of assessed value.

Cape Cod property tax rates for 2025 vary among towns, ranging from $3.47 per $1,000 of assessed value in Chatham to $10.57 per $1,000 in Sandwich. The average rate across the region is approximately $6.54 per $1,000, which is lower than the Massachusetts state average of $12.87 per $1,000. For example, a home with an assessed value of $500,000 in Chatham would incur an annual property tax of $1,735, while the same home in Sandwich would cost $5,285. Some towns may also impose additional fees, such as municipal water taxes. Property owners receive annual tax assessment notices.

Geographic and Seasonal Cost Differences

Living costs on Cape Cod vary depending on the specific town and time of year. Geographically, costs differ between the Upper, Mid, and Outer Cape regions. Towns like Provincetown, Chatham, and Orleans have higher median home prices, with Provincetown reaching approximately $2,075,000 and Chatham around $1,312,500. In contrast, towns such as Yarmouth, Dennis, and Bourne have lower median home prices, with Yarmouth at around $591,000. These differences are influenced by factors like proximity to beaches, commercial centers, and developable land.

Seasonality impacts certain expenses, particularly rental prices. During the summer tourist season, demand for accommodations surges, leading to higher short-term rental rates. Monthly vacation rentals can average $466 per night for a family of five. In contrast, off-season or “winter” rentals, available from October through May, are more affordable, with monthly rents ranging from $1,700 to $4,200. The increased demand during summer can also influence the prices of some goods and services due to the influx of visitors.