The median household income in Boston, Massachusetts is $82,000. This figure is about 4% higher than the national average of $78,538.

However, if you only look at this number and think, 'Boston isn't that expensive,' you are mistaken. When you consider Boston's housing prices and cost of living, the story changes completely.

Boston is home to some of the world's top universities, including MIT, Harvard, Northeastern, and Boston University. The research, medical, technology, and biotech ecosystems created by these institutions continuously supply high-income jobs. Kendall Square is considered one of the largest biotech clusters in the world, and many researchers, engineers, and biotech professionals working in this area earn well over $120,000. These individuals form the upper end of Boston's income distribution.

So why does the median income remain at $82,000? This is due to the student household effect. The Boston metropolitan area is home to hundreds of thousands of college and graduate students. Many of them have little to no income. The statistical effect of these student households significantly pulls down the median income. In other words, the overall median income of $82,000 in Boston may be lower than the average for actual career-oriented households.

What about housing prices? This is the key point. Single-family homes in Boston are hard to find, and if available, the median price is observed to be between $800,000 and $1,200,000. For condos, prices in the city center range from $600,000 to $900,000, while those further out are between $400,000 and $600,000. Calculating the price-to-income ratio based on the $82,000 income shows a level exceeding 10 times. This clearly indicates a serious burden of housing costs.

As a result, households actually purchasing homes in Boston can be divided into two main groups. One consists of dual-income households in high-paying professional jobs, and the other includes long-term residents who already own assets. For newcomers, the Boston real estate market is one of the most challenging markets in the country. The rental market is also tough. The rent for a one-bedroom apartment easily exceeds $2,500 to $3,500, while two-bedroom units range from $3,200 to $4,500.

Nevertheless, the reasons people are drawn to Boston are clear. It has world-class universities, research institutions, medical facilities, and high-paying jobs based on these resources. Young professionals who graduate from Harvard or MIT and find jobs in Kendall Square or Back Bay often earn high salaries while living in rentals, which is a typical living pattern in this city.

A significant Korean community has also formed in the Boston metropolitan area. In particular, there is an active community of international students and researchers, some of whom settle in nearby cities like Cambridge, Somerville, and Quincy. As housing prices decrease slightly when moving a bit outside the city, Korean households looking for actual residence tend to choose these areas.

While the figure of $82,000 is slightly above the national average, Boston is one of the metropolitan areas with the highest housing cost burdens in the U.S. Even with high incomes, housing costs rise even more steeply — Boston is a typical example of this. Whether from an investment perspective or for actual residence, it is important to recognize and approach the gap between income levels and housing prices adequately.