Cost of Living on Nantucket

Housing represents the largest expense for Nantucket residents, with costs 324% above the national average. The median home price on Nantucket exceeds $2.5 million, with waterfront and downtown properties often reaching $5-15 million or more. Even modest homes in less central locations rarely list below $1.5 million.

Rental costs are equally significant. Year-round rentals are extremely scarce and competitive, with one-bedroom apartments starting around $2,500-3,500 per month when available. Seasonal rentals during summer months range from $3,500 to $15,000+ per week depending on location and amenities.

Many year-round residents face housing challenges, as the limited inventory and seasonal rental market create competition for affordable options. Some employers provide housing assistance, and the town has initiated affordable housing programs to help year-round workers find housing.

Utility costs on Nantucket are notably higher than mainland Massachusetts due to the logistics of island service. Electricity rates are among the highest in the state, with monthly bills averaging $200-400 for a typical home. Heating oil and propane are commonly used and must be shipped to the island, adding to costs.

Internet and cable services are available through local providers, with costs comparable to mainland rates. Water and sewer services are provided by the town, with rates varying by usage. Many homes rely on private wells and septic systems, which require regular maintenance.

Home maintenance costs are elevated due to the need to import materials and labor. The harsh maritime environment also requires more frequent exterior maintenance, from saltwater-resistant paint to roof repairs.

Groceries on Nantucket cost approximately 8% above the national average, with some items significantly higher. Everything must be shipped to the island by ferry or barge, adding transportation costs to most goods. Stop & Shop is the primary year-round grocery store, supplemented by smaller markets and specialty shops.

Dining out is generally expensive, with casual restaurants averaging $20-35 per entree and fine dining options ranging from $50-100+ per person. Many seasonal residents stock up on essentials during mainland trips to offset costs.

General merchandise, clothing, and household items are available at local shops, though selection is limited. Many residents order online or shop during mainland visits for larger purchases and specialty items.

Transportation costs on Nantucket are 107% above the national average. Gas prices typically run 50-80 cents higher per gallon than mainland Massachusetts, averaging around $5.87 per gallon. Many residents opt for bicycles, scooters, or going car-free to reduce costs.

Ferry transportation is a significant expense for island residents. Round-trip passenger tickets cost approximately $45-50, while bringing a vehicle requires reservations far in advance and costs $250+ round-trip during peak season. Frequent travelers often purchase seasonal passes.

Flying from Nantucket to Boston costs $100-250+ one-way on JetBlue or Cape Air. Year-round residents who travel frequently should budget accordingly for these transportation costs.

To live comfortably on Nantucket as a single adult, financial experts recommend an annual income of at least $118,000 before taxes. This accounts for the high housing costs, elevated prices for goods and services, and the need to maintain a reasonable quality of life.

For families, the income requirement scales significantly. A family of four should aim for $180,000 or more annually to cover housing, childcare, education expenses, and the higher cost of everyday goods. The median household income on Nantucket is $109,988, indicating that many residents stretch their budgets carefully.

Remote workers have increasingly made Nantucket their home, as island living becomes more feasible when salaries are based on mainland or urban rates. This trend has contributed to rising housing costs as demand increases.

Compared to Cape Cod, Nantucket's cost of living is approximately 30-50% higher across most categories. Boston and Cambridge have comparable housing costs in some neighborhoods, but Nantucket's overall cost of living exceeds most mainland communities.

The trade-off for these higher costs includes access to pristine beaches, a tight-knit community, low crime rates, excellent schools, and a unique quality of life that many residents find invaluable. The island lifestyle attracts those willing to prioritize these benefits over lower mainland costs.

For those considering a move to Nantucket, careful financial planning is essential. Working with a local real estate professional who understands both the market and the lifestyle can help you make informed decisions about whether island living fits your budget and goals.