From its beautiful beaches to eclectic dining, there are many reasons to call New Jersey home. This small state on the Eastern Seaboard boasts approximately 130 miles of coastline, dotted with seaside resorts. It’s home to one of the most ethnically diverse cities in America, Jersey City.
These multicultural cities and towns make New Jersey a hub for diverse dining, art, culture and history. Living in New Jersey also keeps you close to all the action of New York City and Philly. But nature lovers can swim, hike, cycle and even ski in state parks and outdoor recreation areas.
Offering a unique blend of things to do, deciding on the best place to live in New Jersey comes down to personal preference and budget. For the most part, the cost of living in New Jersey is above the national average. But there are a few areas where the cost of living is lower, so don’t let the high cost of living dissuade you. There are still affordable places to live around the state. Here’s a look at how the cost of living in New Jersey breaks down across the state for expenditures like housing and healthcare.
New Jersey housing prices
With one exception, the cost of living for housing in New Jersey sits above the national average. Those located within the Tri-State area top the charts, with the highest housing averages around the state. The Tri-State area, also known as the New York metropolitan area, encompasses New York City, New Jersey’s six biggest cities and parts of Connecticut and New York state. It’s the largest and most populous metro area in America.
With New York City being one of the most expensive places to live in the United States, naturally, cities within its metro area will also have high housing costs. But, before you resign yourself to sky-high rents, other parts of the state have more affordable housing.
This is what housing costs look like in cities around New Jersey. One example shows lower-than-national average housing costs in one area. The others show how average rents and housing costs vary across the New York metro area.
Morristown
Even though it’s located toward the western outskirts of the New York metro area, housing costs in Morristown are still up there at 37.8 percent above the national average. With its rich history and access to parks and wilderness areas, it’s considered one of the best places to live in New Jersey. But that clearly doesn’t mean affordable housing. Many people live in Morristown but commute to Newark or New York. As a popular bedroom community, that drives up housing prices.
Renting a one-bedroom apartment here costs an average of $2,315 per month, up 15 percent from last year. Two-bedroom apartments are up 6 percent to $2,927.
Buying a house in Morristown comes with some nasty sticker shock. Up 19.7 percent from last year, houses in Morristown have a median sales price of $718,325. That’s a big jump over the national average. So, whether you’re looking to rent or own in Morristown, you’ll be finding higher prices.
Newark
Newark, New Jersey’s most populous city, is right at the heart of the New York metro area in northeastern New Jersey. Being that close to New York City, it’s no surprise that the cost of housing here is higher than in other areas. At 51.3 percent above the national average, it has the highest housing average of our highlighted New Jersey cities.
Locals shell out an average of $2,705 for a one-bedroom apartment around Newark. That number is up 35 percent from last year. But the cost of a two-bedroom has declined 27 percent. You can find two-bedroom apartments for an average of $2,450. With these prices, it makes more sense to go for the cheaper two-bedroom option and have more space for less.
Housing costs in Newark have risen 17.7 percent from last year. Newark’s median sales price for a house is currently around $365,000, which is still below the national average.
Vineland
Located in southwestern New Jersey, Vineland is a cute, family-friendly town surrounded by farms and nature preserves. Its location near the southern end of the state, far from New York, means that rent prices are lower here. Housing costs here are 17.5 percent lower than the national average. With more affordable rents and great outdoor access, Vineland is a great option for budget-friendly living. It’s also just an hour away from Philadelphia.
Rent prices have stayed consistent here over the past year. A one-bedroom apartment costs an average of $937, the same as last year. Two-bedroom apartments have also seen no growth or decrease, holding steady at an average of $1,082 per month.
The home-buying market in Vineland has been on the rise over the past year, though, growing 15.9 percent. The median sales price for a home in Vineland is $231,750. That price is a fair bit lower than the national average of $430,695.
New Jersey food prices
From hoagies to pork rolls, New Jersey residents have no end to delicious things to dine on. Luckily, for the most part, the cost of living in New Jersey for food is only slightly above the national average. For overall average food prices, the cost of groceries in New Jersey is 8.7 percent above the national average. Locals spend between $3,201 to $3,600 on food per person annually. That comes out to $266 and $300 per month. But food costs do vary around the state. Here’s how grocery prices in some New Jersey cities stack up to the national average:
- Vineland is 1.7 percent above the national average
- Newark is 6.6 percent above the national average
- Morristown is 12.5 percent above the national average
Vineland is the least expensive city for food on our list, with Morristown being the most expensive. Newark is a good middle point. But averages don’t tell the full picture. It’s possible the price of individual food items are the same in the most expensive and least expensive cities. Getting a dozen eggs in Vineland or Morristown costs the exact same at $1.83. If you’re picking up a half-gallon of milk, you’ll pay $2.77 in both Morristown and Newark. In Vineland, it’s only $2.55.
As such a multicultural state with so many different kinds of cuisines, dining out is huge here. So, the cost of going out to dinner will also vary depending on where you are. Going out for a nice three-course meal of Portuguese or Spanish food for two in Newark will set you back $72.50. In Morristown, you’ll pay 20.83 percent less at $60 for the same kind of special night out.
New Jersey utility prices
Overall, the cost of living for utilities in New Jersey is higher than the national average. Utilities include services and items like energy, water and internet that are essential for your home. Compared to the national average, this is how expensive it is to pay for utilities in these New Jersey cities.
- Vineland is 11.5 percent above the national average
- Newark is 11.3 percent above the national average
- Morristown is 0.9 percent above the national average
New Jersey residents get their electricity from a mix of natural gas and nuclear energy, as well as some renewable solar energy. The state sources its water mainly from surface-water resources like lakes, rivers and reservoirs.
You’ll be paying less for energy in Morristown. The average monthly bill for all your energy costs comes out to around $181.01. The most expensive city for energy is Vineland at $22.15.
Internet is another essential utility that most modern households require. You’ll be paying more for internet access in Newark, where 60 megabits per second cost $85.57 per month. But in Morristown, it’s only $59. That’s a big price difference of 45.04 percent.
New Jersey transportation prices
From bus to train to light rail, there are plenty of ways to get around New Jersey. Providers like NJ Transit offer public transportation throughout the state, while some individual cities and towns also operate their own mass transit. Some cities within the New York metro area also have access to larger public transportation systems like the Metropolitan Transit Authority.
Using public transportation is a great way to save money on things like gas and car insurance. Since many New Jersey residents commute to New York for work, mass transit can save time and money. But it does depend on how long your commute is. Since New Jersey’s mass transportation costs are above the national average, you’ll need to determine for yourself if it’s a money-saver or not. Here’s how far above the national average each New Jersey stands in terms of mass transit costs:
- Vineland is 6.6 percent below the national average
- Newark is 7 percent above the national average
- Morristown is 6.2 percent above the national average
All three cities are pretty close, but Newark wins out for being the most expensive. The public transit systems in the New York metro area are the most extensive. Here’s a breakdown of the different transportation options and costs in some of these cities.
NJ Transit in Newark
Consisting of buses and light rail, Newark gets its public transportation from NJ Transit. Part of the larger state-wide network, NJ Transit offers rides both around town and to other cities, counties and states.
Fares vary by type of transportation and zone. Starting adult rates for a one-way bus ticket start at $1.60 for Zone 1, $2.55 for Zone 2 and $3.15 for Zone 3. Transfer fees cost $0.75 extra. Monthly passes are available but similarly vary by zone, routes and destinations. Using the Light Rail to get around town, a single adult fare is $1.60 per ride and $59 for a monthly pass.
If you prefer to use your car to get around, you may need to use the New Jersey Turnpike. This controlled-access, toll road goes throughout the state and passes by Newark. If you need to use it to get into New York or go elsewhere in New Jersey, you’ll have to pay a toll. This fee varies depending on how long you use the turnpike. For example, if you’re driving from Newark International Airport to the Holland Tunnel in nearby Jersey City, you’ll pay around $5.65. You can use their toll calculator to determine the exact fare. If you were to travel the entire length of the Turnpike in a standard 2-axle passenger vehicle, you’d pay $19.43 with the E-ZPass system.
If you do plan on using your car to get around, monthly parking passes average $120 in Newark.
With a high transit score of 65, it’s easy and affordable to get around Newark. As a tightly-condensed urban center, Newark is also very walk-friendly. It’s actually one of the most walk-friendly cities for renters in America. Its walk score is 78, so you can easily navigate neighborhoods on foot. But it’s best to leave bikes at home or only use them in parks. Newark’s bike score is a lowly 54.
NJ Transit in Morristown
Morristown also gets its mass transit provided by NJ Transit, with bus and commuter rail. Both connect to Newark’s Light Rail system.
Fares for NJ Transit in Morristown similarly vary by zone and type of service used. Bus lines start at $1.60 for a single adult fare and go up depending on route length and zones. The commuter rail train has similar pricing starting around $2.25 for the Morristown line. Monthly passes cost $60. But again, these prices vary widely by zone and length of ride. You should also buy your ticket before boarding to avoid a $5 surcharge.
If you don’t need to use mass transit to commute into and out of Morristown, it’s easy to walk to and from your destination here. The town’s walk score is a high 71. But it’s not quite as bike-friendly, ranking only 44 for bike score.
New Jersey healthcare prices
Healthcare is one of the few New Jersey cost of living categories that consistently falls below the national average. But it’s important to take those figures with a grain of salt. It’s very difficult to determine an accurate average for healthcare since costs vary widely from person to person. There are big variations even within cities or regions. Different factors can drive up healthcare costs for different people, such as pre-existing conditions or the cost of prescription drugs.
For the most part, though, New Jersey offers affordable, quality healthcare. Many New Jersey towns and cities also rank well locally and nationally in terms of overall public health. Morristown, in particular, is a very healthy place to live. But Morristown is also a perfect example of how healthcare costs are so difficult to average. Despite being such a healthy town, healthcare costs in Morristown are actually the closest to the national average of our three cities. Here’s how healthcare costs in these N.J. cities compare to the national average:
- Vineland is 6.5 percent below the national average
- Newark is 2.4 percent below the national average
- Morristown is 0.9 percent below the national average
To illustrate this, here’s what you can expect to pay to go to the doctor’s office in different cities:
- Vineland: $95
- Newark: $91
- Morristown: $104.86
Going to the dentist is also the most expensive in Morristown at $120.31. The most affordable place to go for a cleaning and dental check-up is in Vineland at $103.13.
No matter what, it’s important to plan annual visits to all your major doctors to stay on top of your health.
New Jersey goods and services prices
Along with housing, groceries and other costs of living categories in New Jersey, there’s another essential spending that takes up a chunk of a monthly budget. A miscellaneous good or service could be something you get fairly frequently, like going to the dry cleaners or heading out to the movies.
The combined cost of all these items and services can definitely sway a monthly budget. That’s why it’s important to compare the local costs of goods and services to the national average.
- Vineland is 5.3 percent below the national average
- Newark is 12.5 percent above the national average
- Morristown is 0.9 percent above the national average
Newark ranks high above the other cities for the most expensive goods and services. This is no surprise considering it’s right in the heart of the New York metro area. But just because a city has higher or lower averages for miscellaneous goods and services doesn’t mean all items will reflect this. Some items will be more expensive in less expensive cities. For example, it’s more expensive to go to the dry cleaners in Morristown where it costs $13.88. It’s the cheapest in Newark at $12.28. Going to the movies is also more expensive in Morristown, costing $14.24 compared to $13.13 in Newark.
If you have a family, paying for childcare will be a big part of your monthly goods and services budget. Childcare costs can vary widely by city and state. With New York boasting some of the highest national prices for childcare, you would think childcare would be the highest in Newark. But not so. Paying for a month of private preschool or kindergarten only costs $500 per child in Newark. But, in Morristown, with its large commuter community, that number jumps 68.75 percent to $1,600 per month. If you always need to get into the city for work, it stands to reason that childcare costs would be more in-demand and therefore higher.
Taxes in New Jersey
New Jersey’s statewide sales tax is 6.625 percent. To put that in perspective, if you go out and spend $1,000 on a giant order of hoagies for a party, you’ll have to pay $66.25 on top of that for tax.
While that’s a lot that adds to the cost of living in New Jersey, the upside is that the state doesn’t have local or city sales tax. You’re paying the same rate no matter where you are in the state.
- Vineland has a combined tax rate of 6.625 percent
- Newark has a combined tax rate of 6.625 percent
- Morristown has a combined tax rate of 6.625 percent
The other kind of tax to consider is income tax. New Jersey implements a graduated income tax rate, going from 1.40 percent up to 10.75 percent. New Jersey also has high property taxes, which is something to consider if you want to buy a house here.
How much do you need to earn to live in New Jersey?
With the elevated cost of living in New Jersey, how much do you need to earn to live in the Garden State? It’s recommended that you only spend around 30 percent of your gross monthly income on housing. This is due to the fact that housing is usually the biggest monthly expense. But you want to have ample money left over for groceries, healthcare and the odd movie night out.
Since the average statewide rent is $2,414, you’d need to make $8,046 per month to fit the 30 percent rule. That comes out to $96,552 per year. At $85,245, the median household income in New Jersey falls short of that figure. This could mean that some households pay more for housing than the recommended 30 percent.
To determine if you can comfortably afford housing in New Jersey, crunch some numbers using our rent calculator.
Living in New Jersey
From its diverse, vibrant metro areas to its scenic coastline, New Jersey has a lot to offer prospective residents. But, in most places around the state, the cost of living in New Jersey does exceed the national average. However, with all the above information, you can make educated, informed choices about the best places to live in New Jersey that fits your budget and lifestyle.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com