Do salaries compensate for the higher cost of living? (Boston: home, employment)

[snatale1]

No, they don't. When I lived in MA before I moved out (West Roxbury) I made almost 100k my last year, my wife made around 60k, we never had money kicking around in any real amount. We now live in VA, she makes around 50k now and I'm around 65k. We have MUCH more money, new cars, and a house we could have NEVER afforded in MA. Where right outside the city in upper middle class burbs. We never imagined how insanely expensive MA was until we left. People typically look at rents, home prices and salaries but that's only scratching the surface. The salaries here aren't that different most of the time, yet the cost of living is insanely less.

[Whatsnext75]

The salaries here aren't that different most of the time, yet the cost of living is insanely less.

That's what I've heard as well.

[Urban Peasant]

Originally Posted by Dm84

Sure. Then you add on $330/month for a commuter rail pass and lose 4-5 hours a day commuting. On top of that, if you're a high earner, RI's income tax is higher than MA.

Many large firms offer discounts on T-passes. My company for instances offers a pretax discount on T-passes. Other firms partly or even wholly subsidize public transportation for their employees. Besides, the rapid transit and local bus service can be just as slow around Greater Boston. You might spend just as much time getting to Randolph or Peabody as Providence by public transportation depending on where you are coming from. The one benefit to sticking closer to Boston is that you might have more alternatives in case one line breaks down, which you would not have if commuting from Rhode Island. That's the same situation if you were commuting from further away places within MA such as Worcester or Fitchburg. The commute, while long, can be done however and you can save money over the long run by doing it.

[Dm84]

Originally Posted by Urban Peasant

Many large firms offer discounts on T-passes. My company for instances offers a pretax discount on T-passes. Other firms partly or even wholly subsidize public transportation for their employees. Besides, the rapid transit and local bus service can be just as slow around Greater Boston. You might spend just as much time getting to Randolph or Peabody as Providence by public transportation depending on where you are coming from. The one benefit to sticking closer to Boston is that you might have more alternatives in case one line breaks down, which you would not have if commuting from Rhode Island. That's the same situation if you were commuting from further away places within MA such as Worcester or Fitchburg. The commute, while long, can be done however and you can save money over the long run by doing it.

Sure. My employer subsidizes T passes.

However, in the absolute best case scenario the commuter rail ride is approximately 75 minutes from Providence to Boston. Let's say you live a 10 minute walk from the train station and work 5-10 minutes from the office, that's over 90 minutes each way, so 3 hours a day spent commuting.

The commuter rail hasn't consistently achieved that level of reliability in months (I ride the Providence line daily and maybe have had an on time commute 2 or 3 times a week in warm weather; usually I experience 15 minute delays). In the past month, the ride has been an absolute nightmare (30 minute delays have been the best case scenario most days, with 1 hour delays being more common).

While you may be able to put a price tag on the cost of housing, you also need to make a personal decision as to how much your time is worth and how much stress you're willing to endure every day. My experience with co-workers from Providence has been that for the first few months they're perfectly content with the daily grind, but after a few months they end up moving closer to Boston, even though it will cost them more. Yes, some people may be perfectly happy spending 4-5 hours a day commuting to save some money, but there's a reason most people don't commute that far.

[MassVt]

A discounted T-pass is not nearly enough to make up for the ridiculous housing costs in the Boston area..

[Whatsnext75]

Comonies I've worked for always offer the 1/2 off pass. It saves me about $35 a month which is nice but nothing to get excited about. Free praking and now we're talking. Eff the train!

[LeavingMA]

Originally Posted by anonemu

As someone who moved from Boston to Seattle around a year and a half ago, the answer is most certainly no. I make 20% more in a similar company and similar role with no state income taxes and cost of living that's a decent bit lower. I stay in the heart of the city in a large 1bd with covered garage parking and W/D in unit for 1495$/month. I was paying 1657$/month in fricking Waltham when I left.

Honestly my quality of life has improved significantly since moving here. Oh and I definitely don't miss the winters

I'm in Texas and making more than I would in Massachusetts. Actually most of the jobs in and around the cities in Texas pay quite well. Add the fact their is no state income tax and my apartment is really nice, and would probably cost me almost double up around Boston.

Also, I completely agree with you...I don't miss the long winters.

[ormari]

Originally Posted by Dm84

However, in the absolute best case scenario the commuter rail ride is approximately 75 minutes from Providence to Boston. Let's say you live a 10 minute walk from the train station and work 5-10 minutes from the office, that's over 90 minutes each way, so 3 hours a day spent commuting.

One can take Amtrak from Providence to Boston and my S.O. does so. It costs a little more, but cuts the time significantly. For the price we paid for a tiny apartment in Somerville, we get a whole house in Providence. The commute into the city from where we were in Somerville was at least 45 minutes by T. The move was worth it.

[LIS123]

Originally Posted by MidwestRedux

For people working in most fields, the higher than national average wages don't even come close to offsetting the extremely high cost of living.

There are some people that work in medical, technology and a few other sectors that have jobs that don't exist in many other places and if they do exist elsewhere, they pay a lot less than they do in Boston. It is definitely worth it for people working or aspiring to work in these fields to pay the higher costs.

If you don't work in one of those fields than you have to decide if you are gaining enough by living in the area to make up for what your not getting because of the cost. Are you ok renting a place with roommates instead of getting your own apartment and eventually buying a house? Do you mind taking public transportation instead of having your own car? These are the kinds of decisions that need to be made if you aren't a doctor, lawyer, hedge fund manager and/or your last name isn't Lowell or Cabot.

This isn't a problem that's unique to Boston. New York, LA, D.C. SFO etc have the same issue. They are desirable places that have created a lot of wealth over the years and attract wealth from all over the world. They are also places where people do scrounge and scrimp just to be able to live there.

The net effect is that these places are really expensive and most wage earners are going to have much less purchasing power than they would in the rest of the country.

As others have stated, the other places you mentioned may have similar problems. Rhode Island is almost as expensive as Mass. but with a worse economy. Florida is a lot less expensive, but doesn't exactly have an abundance of good paying jobs. The desirable areas of the west are going to be really expensive too.

This post is 100% correct; the poster couldn't be more correct!

In general, the COL in Boston is disproportionately high relative to the salaries. For those of us working in medical research (such as yours truly), I would recommend living in the area not just b/c of higher salaries but more opportunities. In select other lines of work (Investment Management, Consulting, etc.), the COL maybe offset (or more) by higher salaries/better opportunity but, for the vast majority of people/jobs, the answer is no, not even close.

IMO, the worst part about living here is actually the windy/poorly designed roads and the fact that it takes a lot longer to get anywhere than one would imagine based on distance. In general, I have found it a very annoying place to live. By this, I mean seemingly trivial issues in other places (driving around town, parking, etc.) can become problematic here. I had to wait for a parking spot at a CVS a good 25+ miles away from Boston proper at 2 pm last Thursday; these sorts of inconveniences do not exist in many other places. Factoring in the roads, traffic, COL, weather, run down (but expensive) housing stock, crowding, and other factors, I would not recommend the Boston area (by a longshot) for people who have equal employment opportunities in other locales. For me, it is still worth living here b/c the employment opportunities in the fields that interests me are better than anywhere else in the country but, were I working as a teacher/nurse/accountant/waiter (or other job where opportunities are available through the nation), the thought of living here would never cross my mind, nor would I recommend living here for those who have similar employment opportunities in other areas.

[wolfgang239]

No, not at all.