The cost of living in New Jersey brings a mix of city life, scenic suburbs, and proximity to major metropolitan hubs like New York City and Philadelphia, making it a unique choice for diverse lifestyles. Unlike other states, New Jersey has a state income tax and relatively high property taxes, which may impact budgets, but it also offers a strong job market and accessible public transportation options. While certain areas like Hoboken and Jersey City come with higher housing costs, other regions in the state offer more affordable options, particularly in South Jersey. In this article, we’ll explore what it really costs to live in New Jersey, from housing to groceries and beyond, giving you a look at life in the Garden State.
Housing costs: Median home prices and average rent in New Jersey
Housing costs in New Jersey are notably high, with a median home sale price of $538,800—well above the national median of $428,000—and an average rent of $2,310 compared to the U.S. average of $1,645. Cities like Hoboken, Jersey City, and Newark are among the priciest due to their proximity to New York City and strong job markets, making them popular. On the other hand, more affordable options exist in areas like Trenton, Camden, and Vineland, especially in South Jersey, where housing costs are lower while still offering reasonable access to urban amenities.
New Jersey housing costs: Average rents and median home sale prices
| City in New Jersey | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $428,000 |
| Newark | $2,595 | $2,688 | $528,000 |
| Jersey City | $3,811 | $4,682 | $635,000 |
| Paterson | $1,519 | $1,600 | $500,000 |
| Elizabeth | $2,049 | $2,099 | $640,000 |
| Edison | $2,057 | $2,685 | $600,000 |
| Hoboken | $3,669 | $4,600 | $935,000 |
| Morristown | $2,622 | $4,135 | $800,000 |
| Princeton | $2,857 | $3,562 | $995,000 |
| Asbury Park | $2,077 | $2,569 | $999,000 |
| Lambertville | $2,525 | $2,300 | $526,000 |
Housing costs in popular cities in New Jersey
Newark
With an average rent of $2,595 for a one-bedroom and $2,688 for a two-bedroom, Newark offers a relatively accessible entry point for those seeking proximity to New York City without paying Manhattan prices. The median home sale price here is $528,000, making it more affordable than nearby Jersey City. Newark has plenty of attractions like the Newark Museum of Art, and easy access to transportation through Penn Station. Residents will find a mix of historic neighborhoods and modern apartments.
Read more: 9 Pros and Cons of Living in Newark
Jersey City
Known for its stunning Manhattan skyline views, Jersey City is one of New Jersey’s priciest areas, with an average one-bedroom rent of $3,811 and a two-bedroom rent of $4,682. The median home price is $635,000, reflecting its appeal as a bustling urban hub with direct PATH train access to New York City. Jersey City has a mix of upscale and historic neighborhoods, an array of restaurants, and outdoor attractions like Liberty State Park.
Read more: 11 Pros and Cons of Living in Jersey City
Paterson
A more budget-friendly option, Paterson has an average rent of $1,519 for a one-bedroom and $1,600 for a two-bedroom, with a median home price of $500,000. Known for its rich industrial history and the Great Falls National Historical Park, Paterson has a quieter urban lifestyle compared to Newark or Jersey City.
Elizabeth
Elizabeth is another bustling city with close proximity to Newark and easy access to New York City. Average rents are around $2,049 for a one-bedroom and $2,099 for a two-bedroom, while the median home price is $640,000, reflecting its appeal as a commuter-friendly area. Elizabeth’s residents enjoy a variety of restaurants, shopping at the Jersey Gardens mall, and a mix of suburban and urban amenities.
As expected, utility bills run high in New Jersey
Utility costs in New Jersey tend to be higher than the national average, with residents typically spending around $656.78 per month on essentials like electricity, water, and heating. The average electric bill in New Jersey is about $114.08, while water bills come in around $72.00 monthly. This adds up quickly, especially when compared to the national average household utility bill of $609.90 per month. Residents should budget accordingly, as New Jersey’s colder winters and humid summers can drive heating and cooling costs higher than in many other states.
Energy bill comparisons: New Jersey cities vs. nationwide average
| Monthly Energy Bill | Monthly Phone Bill | Comparison to National Avg. | |
| National Average | $203.40 | $194.11 | |
| Newark | $219.52 | $188.31 | +4% more |
| Elizabeth | $219.52 | $188.31 | +4% more |
| Edison | $214.68 | $188.31 | +2% more |
| Morristown | $190.85 | $188.34 | -5% less |
| Princeton | $214.68 | $188.31 | +2% more |
Data from Redfin’s Cost of Living Calculator, November 2024
Gas prices are average, but public transport is costly
Transportation in New Jersey offers various options, with costs that can be manageable, especially for commuters. Gas prices are slightly below the national average, at $2.91 per gallon compared to $3.08. For those relying on public transit, NJ Transit provides a range of options, such as the train fare from Newark to New York City, which is approximately $15.75. The PATH train, another popular option for those commuting to Manhattan, charges $2.75 per ride. These choices make commuting feasible, though regular riders may want to consider monthly passes for savings, such as the NJ Transit monthly rail pass from Newark to NYC, which is around $200.
Health care is another above average cost
Healthcare in New Jersey tends to be more expensive than the national average. In areas like Newark-Elizabeth, healthcare costs are about 8% higher than the national norm. For example, the average cost of a doctor’s visit in the U.S. is around $142.74, but in Newark-Elizabeth, it can climb to $172.78. These higher healthcare costs can be attributed to a range of factors, including the concentration of medical services in urban areas and the overall higher cost of living in the state. While the state’s healthcare system provides quality services, residents should be prepared for medical expenses that are steeper compared to much of the rest of the country.
Prepare for some of the highest taxes in the nation
New Jersey has one of the highest tax burdens in the nation, with a variety of taxes that can significantly impact residents. The state imposes a graduated income tax ranging from 1.4% to 10.75%, with higher rates for higher earners. In addition to the income tax, New Jersey has a 6.625% state sales tax on most goods and services, though certain items, such as clothing and food for home consumption, are exempt. Property taxes are notably high, with an average effective rate of 2.26%, one of the highest in the U.S.
How much do I need to earn to live in New Jersey?
To comfortably live in New Jersey, it’s generally recommended that your housing costs don’t exceed 30% of your monthly income. Given the state’s relatively high rent and home prices, this rule can be a useful guideline. For instance, with an average rent of $2,310 for a one-bedroom apartment, you’d need to earn at least $7,700 per month, or about $92,400 annually, to stay within the 30% threshold. Keep in mind, this doesn’t include other living expenses, such as utilities, groceries, and transportation, which will also impact how much you need to earn.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
