The Beauty of Cape Cod Comes at a High Cost

Cape Cod is renowned for its stunning coastal landscapes and charming communities.

 

However, the cost of living in this picturesque region is significantly higher than the national average.

 

As of 2025, the overall cost of living index for Cape Cod stands at 131.5, indicating it's 31.5% more expensive than the national average.

 

Housing is the primary contributor to this elevated cost.

 

The housing index reaches 192.9, nearly double the national average.

 

In July 2025, the median sales price for a single-family home in Barnstable County was $802,500, making homeownership unattainable for many year-round residents.

 

For instance, in Chatham, the median home price in 2023 was $1,050,000, requiring an annual household income of approximately $303,803 to afford comfortably.

 

In contrast, the median household income in Chatham is $86,674, highlighting a significant affordability gap.

 

Renting is also challenging.

 

Monthly rents for apartments typically range from $1,800 to $3,500, depending on size and location.

 

Year-round rentals are scarce due to competition from seasonal vacation rentals.

 

Utilities add to the financial burden.

 

Electricity rates average 33 cents per kilowatt-hour, among the highest in the nation.

 

Monthly electricity bills often exceed $289.

 

Additional expenses include heating, water, and limited internet provider options, all contributing to higher costs.

 

Grocery prices are also elevated.

 

Items like produce, meat, and seafood carry "island premiums" due to transportation costs and seasonal demand.

 

Transportation expenses are significant as well.

 

With limited public transit, many residents rely on personal vehicles, incurring costs for fuel and insurance.

 

Ferry travel to nearby islands adds to transportation expenses.

 

The income required to afford housing comfortably far exceeds the median household income in many Cape Cod towns.

 

For example, in Dennis, the median sales price is $575,000, necessitating an annual income of $167,949 to afford a home, while the median household income is $88,183.

 

Many households spend over 30% of their income on housing, a common benchmark of cost burden.

 

In response to the housing crisis, the Cape Cod Commission released the Regional Housing Strategy in May 2024.

 

This comprehensive plan identifies policies and strategies to address housing supply, affordability, and availability challenges while protecting the region's sensitive resources.

 

Additionally, in August 2025, the Cape Cod Assembly of Delegates considered a new regional luxury real estate transfer fee aimed at funding solutions to the region's housing crisis.

 

Living on Cape Cod offers unparalleled beauty and a unique community experience.

 

However, it requires careful financial planning and an awareness of the high costs associated with housing, utilities, and daily living expenses.

 

Prospective residents should consider these factors when deciding to make Cape Cod their home.