Boston, September 29, 2025
News Summary
A recent analysis reveals that the high cost of living in Massachusetts is driving many residents to contemplate leaving the state. A report from the Massachusetts Taxpayer Foundation highlights concerns over housing, healthcare, energy costs, and limited job growth. Polling data indicates that 25% of residents are considering relocation within the next five years, with young adults more inclined to move. To address these challenges, the foundation urges policymakers to implement measures to reduce costs and support economic growth.
Boston — A new analysis shows that high living costs in Massachusetts are prompting residents to consider leaving the state, with a recent report and poll citing housing, health care, energy costs and limited private job growth as core pressures.
Key takeaway
A report from the Massachusetts Taxpayer Foundation released this past week details these issues in the “2025 Competitiveness Index.” The index measures how Massachusetts compares with other states in attracting and retaining families, businesses, and talent. High cost of living, rising health care prices, long commutes, and low private job growth are significant challenges in Massachusetts. These factors are driving residents away and hindering private sector growth.
Evidence and immediate impacts
According to the report analysis and supporting polling, core industries such as education, health care, and innovation remain strengths for the state, but costs are eroding that advantage. Core industries like education, health care, and innovation remain strong in Massachusetts. However, high housing, energy, and health care costs are eroding Massachusetts’ competitive edge. The report cites a changing federal policy landscape as a unique threat to Massachusetts.
State polling and other studies quantify public concern and potential migration. According to a MassINC Polling survey of 1,000 residents conducted in July, 30% of residents view Massachusetts as one of the worst states for overall cost of living. Another 33% of residents rank it as one of the worst for the cost and availability of housing. The poll also revealed that 26% of residents believe the overall tax burden is among the highest in the country.
On potential relocation, the poll found that 25% of residents are considering moving out of Massachusetts within the next five years, with younger individuals (ages 18 to 29) being more likely to think about relocating. Massachusetts Taxpayers Foundation President Doug Howgate stated that rising costs are pushing people to cheaper states.
Policy recommendations and responses
The Massachusetts Taxpayers Foundation urged lawmakers to address issues such as energy costs, regulatory barriers to housing development, health care premium growth, and federal funding cuts. Those recommendations are presented as ways to slow out-migration, support private sector growth, and restore competitiveness relative to other states.
Recent personnel and event notes that provide context for the state’s economic ecosystem include the following: Governor Maura Healey’s former economic development secretary, Yvonne Hao, recently took a position at Flagship Pioneering as chief operating officer and general partner. The Kennedy Institute plans to host former Vice President Mike Pence, who will discuss polarized politics and civic dialogue, this coming Wednesday.
Cost benchmarks
Independent cost-of-living modeling places Massachusetts among the most expensive states. Families in Massachusetts would need to earn an annual income of $313,747 to maintain a “comfortable lifestyle,” as per a new study by SmartAsset, making it the most expensive state for a family of four. The income projection represents a $9,360 increase from the previous year, following the 50/30/20 budgeting rule. Massachusetts is noted to be the second most expensive state for a single adult to live comfortably, requiring an annual income of approximately $120,141.
Background and context
The 2025 Competitiveness Index is intended to provide a comparative snapshot of state-level strengths and weaknesses in attracting residents, firms, and talent. For Massachusetts, competitive strengths remain concentrated in higher education, medical research, and innovation-driven sectors, while affordability challenges threaten longer-term talent retention and private sector expansion.
Policy responses urged by analysts include targeted measures to reduce energy costs, reform regulatory barriers that limit housing supply, manage health care premium growth, and push back on potential federal funding reductions. The report frames these steps as necessary to prevent continued out-migration and to support balanced economic growth.
FAQ
What does the Massachusetts Taxpayer Foundation report say?
A report from the Massachusetts Taxpayer Foundation released this past week details these issues in the “2025 Competitiveness Index.”
What are the main challenges identified for Massachusetts?
High cost of living, rising health care prices, long commutes, and low private job growth are significant challenges in Massachusetts.
Are residents considering leaving the state?
25% of residents are considering moving out of Massachusetts within the next five years, with younger individuals (ages 18 to 29) being more likely to think about relocating.
What did the MassINC Polling survey find about cost perceptions?
According to a MassINC Polling survey of 1,000 residents conducted in July, 30% of residents view Massachusetts as one of the worst states for overall cost of living.
How expensive is Massachusetts for families?
Families in Massachusetts would need to earn an annual income of $313,747 to maintain a “comfortable lifestyle,” as per a new study by SmartAsset, making it the most expensive state for a family of four.
What policy actions did the Massachusetts Taxpayers Foundation recommend?
The Massachusetts Taxpayers Foundation urged lawmakers to address issues such as energy costs, regulatory barriers to housing development, health care premium growth, and federal funding cuts.
Quick reference table
| Metric | Value | Scope / Source |
|---|---|---|
| Percent considering moving within 5 years | 25% | State-level; MassINC Polling survey of 1,000 residents conducted in July |
| Residents who view state as one of the worst for overall cost of living | 30% | State-level; MassINC Polling survey of 1,000 residents conducted in July |
| Residents who rank cost and availability of housing among the worst | 33% | State-level; MassINC Polling survey of 1,000 residents conducted in July |
| Residents who believe tax burden is among highest | 26% | State-level; MassINC Polling survey of 1,000 residents conducted in July |
| Annual income for a family of four to be “comfortable” | $313,747 | State-level; SmartAsset study |
| Annual income for a single adult to be comfortable | $120,141 | State-level; SmartAsset study |
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Additional Resources
- Boston Herald
- Consumer Affairs
- Boston 25 News
- Patriot Ledger
- Moneywise
- Wikipedia: Cost of living
- Google Search: Massachusetts cost of living
- Google Scholar: Massachusetts 2025 Competitiveness Index
- Encyclopedia Britannica: Economics
- Google News: Massachusetts cost of living
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