What is the cost of living in New Jersey? New Jersey is one of the most densely populated and economically prosperous regions in the United States, with a high cost of living compared to other U.S. states due to its geographic location. From housing to transportation, food to healthcare, living expenses in New Jersey cover everything, and the NJ cost of living varies from region to region. For example, the cost of living in Jersey City, NJ or Hoboken is generally higher, while academic areas such as Princeton have unique spending patterns. This article will provide the latest statistics and a detailed analysis of the various costs of living in New Jersey, USA to help those planning to live or study here make financial planning and avoid unnecessary financial stress.
How Expensive is living in New Jersey?
As one of the most densely populated states in the United States, New Jersey has a relatively high cost of living, especially in areas close to New York City, such as Jersey City and Hoboken. According to the latest data, New Jersey cost of living index is 11% higher than the national average, of which the cost of housing is 30% higher than the national average, the cost of living expenses of utilities is also higher, more than 10% of the national average, food expenses, transportation and entertainment are also higher than the national average of 1%, 3% and 5%. Also, New Jersey’s taxes are also a significant factor in overall spending.
| Cost of Living in New Jersey | |
|---|---|
| Types | Compared to National Ave. |
| Housing (Rent) | 30% higher |
| Utilities (Monthly) | 10% higher |
| Food | 1% higher |
| Transportation | 3% higher |
| Healthcare | 0% higher |
| Entertainment | 5% higher |
In general, the cost of living in New Jersey for a single person, excluding rent, is around $1,200 to $1,800 per month, with specific expenses varying by region. For example, Jersey city cost of living is 25% higher than the national average, yet Hoboken cost of living is 60% over the national average. Also the cost of living in Newark, NJ is 17.1% cheaper than Princeton, NJ. Next, we will take a detailed look at all aspects of the cost of living in NJ.
Cost of Living in New Jersey: Housing
The cost to live in New Jersey is notoriously expensive, reaching to $2,500 per month averagely. In New Jersey five largest cities, Newark, Jersey City, Paterson, Elizabeth, and Lakewood, the number of renters is much greater than the homeowners. So the cost of housing rentals in NJ is well above the national average. But the cost of New Jersey flat rent varies significantly from city to city, here is an overview of rental prices in several major cities in NJ:
| New Jersey Apartments Rentals | |
|---|---|
| City | Average Market Monthly Rent |
| Newark | $2,200 |
| Jersey City | $2,400 |
| Paterson | $2,090 |
| Elizabeth | $2,300 |
| Lakewood | $2,050 |
| Hoboken | $3,800 |
| Princeton | $3,500 |
| Toms River | $3,000 |
| New Brunswick | $2,750 |
For students who come to New Jersey to study, finding affordable housing can help save a lot of money on living expenses. uhomes.com is a dedicated student housing service platform that helps international and local students find cozy, cheap, and safe housing options. Whether it is a private apartment for rent or a shared housing rental, uhomes.com provides comprehensive information and professional services to help you secure your ideal student housing.
Cost of Living in New Jersey USA: Utilities
In addition to housing rentals, monthly basic living expenses such as water, gas, heating, internet, etc., are also the crucial expenses that cannot be ignored. The average monthly utility cost in New Jersey is around $505. Followings are the details of utility costs in New Jersey:
| Utilities Cost in New Jersey | |
|---|---|
| Utility | Average Monthly Cost in NJ |
| Energy bill | $109.54 |
| Water bill | $72 |
| Natural gas | $69 |
| Internet | $89 |
| Phone bill | $114 |
| Streaming | $49.50 |
Residents should budget accordingly on their energy bills, as the colder winters and humid summers in New Jersey can drive heating and cooling costs much higher than those in many other states. Still, the cost of utilities varies in different cities in New Jersey. For your consideration, we have listed some of them as follows:
| Monthly Average Energy Bill& Phone Bill Cost by Cities in NJ | ||
|---|---|---|
| City | Monthly Energy Bill | Monthly Phone Bill |
| Jersey City | $215.28 | $208.25 |
| Hoboken | $215.28 | $208.25 |
| Newark | $212.87 | $205.93 |
| Elizabeth | $212.87 | $205.93 |
| Morristown | $212.87 | $205.93 |
| New Brunswick | $208.87 | $202.06 |
New Jersey Cost of Living for Education
Tuition fee is also an important factor to influence the New Jersey cost of living, especially for students. However, tuition fees are different depending on each university as well as diverse majors. For your convenience, we list the tuition fee for some universities and colleges in NJ in the following table.
| Tuition Fees in New Jersey | |
|---|---|
| University/College | Tuition Fee (per Academic Year) |
| Princeton University | $65,210 |
| Stevens Institute of Technology | $63,462 |
| Rutgers University | $14,222 (in-state); $33,734 (out-of-state) |
| New Jersey Institute of Technology | $16,334 (in-state); $34,024 (out-of-state) |
Cost of Food in New Jersey
The cost of food in New Jersey is high and over 1% than the national average, and it usually represents more than 7% of the total residents’ living expenses in NJ. From the latest data, the average cost of groceries in New Jersey for a single person is about $295 per month, while for a family of four is around $1,100 per month.
| Groceries Prices in New Jersey | |
|---|---|
| Type | Average Cost |
| Egg (a dozen) | $4 |
| Beef (London Broil/lb) | $9 |
| Milk (a gallon) | $5 |
| Lettuce (a head) | $1.5-$4 |
| Pizza (plain pie) | $17 |
| Cigarettes (a pack) | $10 |
| Fast Food (burger, fries, drink) | $7 |
NJ Cost of Living for Transportation
Transportation costs in NJ vary by mode of transportation and type of fare.
Public transportation is a popular commute choice for residents living in New Jersey. In fact, Jersey City, Hoboken and Newark have some of the highest proportions of public transportation users in the country, after NYC, which is not only due to the well-development of the public transport in NJ, but also because of its costs that can be manageable, especially for commuters. A one-way ride on the PATH train from New Jersey to New York City costs $3. The latest cost of a one-way rail ticket from Princeton Junction to Penn Station, New York, is $18.40. Meanwhile, you can choose to buy monthly passes for saving, like the NJ Transit monthly rail pass is around $80 to $300, which depending on the distances.
If owning a car, you may need to spend from $300 to $1,000 per month. If you plan to buy a car, aside from the cost of a car, you need to also consider the gas prices, tolls, parking fees, vehicle maintenance fees, car insurances, and more, which also impact your living expenses in New Jersey. Gas prices in New Jersey are typically in and around the national average. Average car insurance in New Jersey is around $1,900 annually. Still all the above costs can vary across different regions within the state.
Cost of Healthcare in New Jersey
The cost of healthcare in New Jersey is also very high. The specific healthcare costs in New Jersey can vary depending on diverse factors, such as insurance coverage, and individual circumstances, like age, gender, zip code, and more. Averagely, the cost of living in NJ on healthcare is around $580 per month.
Here is a table of the cost of health insurance in NJ:
| Cost of Health Insurance in New Jersey | |
|---|---|
| Metal Level | Monthly Cost |
| Gold | $529.19 – $938.03 |
| Silver | $348.75 – $836.63 |
| Bronze | $305.91 – $504.59 |
| Catastrophic | $267.33 – $349.36 |
| *Catastrophic Plans are available only to those individuals who are under 30 years old or who have received an exemption from the personal responsibility requirement on the Marketplace. |
|
Cost of Living in New Jersey: Entertainment
The cost of living in NJ on non-necessary expenses, like entertainment and grooming services, are 5% higher than the national average. Entertainment costs in NJ can vary depending on diverse activity, and the monthly cost of living in New Jersey for a single person on recreations is at least $300. For your consideration, we list the cost of some popular activities in NJ:
| Entertainment Cost in New Jersey | |
|---|---|
| Type | Average Cost |
| Movie Ticket | $20 |
| Comedy Show | $110 |
| Men’s Haircut | $40 |
| Women’s Haircut | $70 |
| Cloth | $100 |
| Shoes | $200 |
Cost of Living in NJ: Tax
New Jersey income tax ranges between 1.4% and 10.75%, which means the more you earn, the higher rates is for you. In addition to the income tax, New Jersey has a 6.625% state sales tax on most goods and services, but some certain items, such as clothing and food for home consumption, are without tax. Moreover, property taxes are notably high, with an average effective rate of 2.26%, which is one of the highest in the United States and is higher than the national average of 0.99%.
Conclusion on Living Expenses in New Jersey
The cost of living in New Jersey is relatively high, especially for housing and transportation. However, the state has good educational resources, convenient transportation, abundant job opportunities and a quality healthcare system, which attracts a large number of students and professionals to live in. For those planning to live or study in New Jersey, planning a budget properly and making the most of housing resources to reduce the cost of living will help you better adjust to life in New Jersey.
FAQs About Cost of Living in New Jersey
Is it expensive to live in New Jersey?
Yes, New Jersey is expensive to live in, with a cost of living that’s 11% higher than the national average. Housing cost is around 30% higher than the national average, and it is the primary reason for the higher cost of living, but other expenses are also expensive.
How much salary is enough to live in New Jersey?
According to the latest data, an individual planning to live in New Jersey needs to earn at least $65,000 per year to get a common life in the state.
Is it cheaper to live in NJ or NY?
Living in New Jersey is expensive, however, it is still cheaper than living in New York. Besides, living in NJ is considered to boast a higher quality of life if you eager to much safety, perfer a large space and nice community feel.
What is the cost of living in New Jersey vs California?
The cost of living in New Jersey is generally 4.0% lower than in California. Specificly, the cost of housing, dining, childcare, and entertainment in New Jersey is cheaper than those in California, while the living expenses in NJ on clothing, transportation, and groceries are higher than those in CA.
