New Jersey Cost of Living: New Jersey Living Expenses Guide

Thanks to its proximity to New York and all of the stunning amenities closer to home, it's not surprising that those moving to New Jersey will find some increased costs. The cost of living in New Jersey is about 20.4% higher than the average for the U.S., meaning people in the state will need to spend about $120 to buy goods that would cost $100 elsewhere. However, this increased cost of living comes with an increase in salaries, and residents often find the costs well worth the conveniences. Read on for more details about what makes up the cost of living in New Jersey.

Cost of Housing in New Jersey

Costs related to housing and real estate are often the most expensive in thriving communities. Using an average of housing in the U.S. index, New Jersey costs are about 36.4% more expensive.

However, these costs are not borne out equally. There are areas of the state with more expensive housing and areas where prices are more affordable. 

Median Home Price

Typically, homes in New Jersey cost about $430,000. However, it's possible to find homes much higher and much lower than this mid-range value.

Trenton's home prices are lower than the statewide average at $255,000, which may be good news for state government employees working near the capital. Prices in the city of Edison hover at about $475,000, while a home in Atlantic City costs around $170,000.

Median Rent

Many residents prefer to live in an apartment for a while before deciding to buy a home. For others, the apartment lifestyle is more appealing. Fortunately, New Jersey has a wide mix of rental options and different cost levels. The most affordable rents in the state can be found in Lindenwold, with rents averaging $1,100 a month.

Rents in the state capital are a little more expensive at $1,600 each month, about on par with the city of Newark average of $1,400. On the other end, the most expensive rents can be found in Hoboken at about $4,000 a month.

As for New Jersey rent by apartment size, the average studio apartment in the state costs about $1,000. Renting a single-bedroom apartment would require $1,250. Adding a bedroom raises the price to $1,600, and a three-bedroom costs $2,200. For maximum space, rent a four-bedroom apartment or house for $2,450 on average.

Cost of Utilities in New Jersey

Aside from the direct costs of rent or mortgages, residents must also pay for several utilities necessary for life. These costs must therefore be considered as part of any potential budget. In general, the cost of utilities in New Jersey is fairly close to costs in the average U.S. state. New residents can expect to pay about 9.2% more for these costs.

As for specific utility costs, the average monthly energy bill in New Jersey is $109. That is almost $14 less expensive than the U.S. average. Water bills in the state are separated into wastewater and regular water; residents can expect average water bills of about $65 per month and wastewater bills of about $68.

Homeowners in New Jersey can expect to add another $965 annually for home insurance, more affordable than the national average of about $1,800. These amounts assume $300,000 for dwelling coverage and an equal amount for liability. Additionally, this might include a $1,000 deductible. Residents with more expensive homes may pay significantly more for home insurance.

Utility costs in other areas depend greatly on choice and options. Cell phone plans can average around $100 monthly per household, and cable and internet are about $120 combined.

Cost of Food in New Jersey

Food is another important consideration regarding the cost of living. Whether dining out with a group at a restaurant or finding quick or healthy meals to eat at home, food costs are important to estimate.

Groceries

On average, grocery costs are about 5.8% more expensive in New Jersey than the national average. That means shoppers will pay about $106 for a cart of food that may cost $100 in other communities. However, it is possible to lower these costs by visiting farmer's markets or discount food stores.

On average, single-person households can expect to pay about $286 a month on groceries. Chicken breasts cost around $11.60, while a dozen eggs comes in at around $3.60.

Restaurants

Knowing the cost of meals can help people plan the frequency of evenings out. Grab a combo meal in a fast-food establishment for lunch for about $9. With more time, you can enjoy a sit-down experience at mid-day for about $16 a person.

Cost of Transportation in New Jersey

For some residents, there is no substitute for owning a vehicle. They have the freedom to go wherever they want, whenever they need. While there are advantages to ownership, there are also some additional costs.

Drivers in New Jersey will find the average cost of a gallon of gas is about $3.26, which is just almost 20 cents cheaper than the average nationwide. Insuring your car will cost about $1,890 in New Jersey, ranking 27th in the nation.

However, the entire New York metropolitan area is world-renowned for its public transportation system. Most of New Jersey is no different. Those who don't want to drive may find a four-mile taxi trip costs about $16.

The NJ Transit system is fairly comprehensive, with several stops in multiple communities. For example, traveling from Woodbridge Center Mall in Middlesex County to the Atlantic City Bus Terminal costs about $51.35 for the four-hour trip. Commuters might use the bus between the Vince Lombardi Park and Ride and the Dumont Park and Ride. That trip takes just over an hour for $15.75.

Light rail is a great option for shorter trips or traveling between frequent destinations. On the PATH system, purchase a single ticket for $2.75 a trip. Commuters may save money with bulk purchases, such as the 40-trip pass for $104. That works out to a savings of $0.15 per trip.

Cost of Healthcare in New Jersey

Healthcare is a cost that is often overlooked in a budget. Because costs related to care can vary wildly, it is important to prepare before the need. 

The national average for healthcare insurance is about $928 a month for single coverage. Employees of private companies in New Jersey can expect to pay about $450 for health care in addition to any employer contribution.

As for individual medical costs in New Jersey, expect to pay about $120 for each doctor's visit. On the other hand, dental check-ups will cost about $105 each, with eye doctor appointments about the same at $115. Be ready to pay about $450 for medications each year.

Those with furry friends will likely pay about $65 for basic regular checkups. However, average pet costs in New Jersey usually go beyond this lowest level of care. If pets need shots or other care, vet visits can extend to over $200. Decent quality pet food can cost at least $30 a bag, while a bag of treats like rawhide bones might add another $18. Don't forget the bed and toys!

Cost of Child Care in New Jersey

For those caring for youth under school age, child care costs can be a major expense. The average cost to leave an infant at a child care center is about $1,082 a month. That adds up to about $12,984 per year. Costs for toddlers are a bit cheaper at $900, or $10,800 annually. The state does have some subsidies available to help parents with these costs.

Parents of multiple children might find these costs doubled or even tripled, but other options are available. For example, in a community like Edison, hiring a nanny might cost about $19 an hour. Based on the number of hours per workday, that could add up to around $39,500 a year. Families with multiple children may save money by hiring an in-house nanny.

Cost of Entertainment in New Jersey

Living in a new community cannot be a simple evaluation of costs. While rent, utilities, and other costs determine the quality of life, enjoying a state requires that favorite pastimes are affordable. The great news is that New Jersey has a wide variety of entertainment, including great outdoor activities that also happen to be free.

Art lovers can visit Grounds for Sculpture art park in Hamilton for about $25. Spend the day at Six Flags Great Adventure in Trenton for a huge water park, wild animal safari, and theme park excitement. Tickets start as low as $45 each.

Gamble and take in a show in world-famous Atlantic City at the Hard Rock Hotel and Casino. Rooms start at $79 a night and include entertainment in one of the many hotel bars and access to the spa and salon. Tickets for nationally known comedians or singers may cost $50 or more.

Average Salary Expectations in New Jersey

Average salaries in New Jersey are about $58,000 annually, and the median household income is around $90,000. The highest-paid jobs were in the medical profession, though some are in finance and engineering as well. The minimum wage for the state is $14.13 an hour.

The unemployment rate in New Jersey is 3.4%, a bit lower than the national average of 3.6%.

Another consideration regarding salary is taxes. New Jersey has a progressive tax rate, and the top incomes are taxed at about 10%. Progressive tax rates mean higher incomes are taxed at a higher rate, so lower-wage workers can expect to pay a lower percentage.

New Jersey's property tax rate is 2.4%, higher than the national rate of 1.07%. This rate is not progressive, meaning everyone pays the same rate regardless of salary. There are some cities in New Jersey with lower property taxes as well.

New Jersey's economy has several key industries acting as pillars. Around 5% of the private sector workers in the state are employed in the transportation and warehousing industry. Around 8.4% of staff in the state work in manufacturing-related positions, contributing billions to the local economy. The financial services industry contributes another 6.6% of private workers statewide. Other popular industries include construction and energy, technology, and health care.

Come Home to New Jersey

As part of the New York City metro area, New Jersey is unparalleled in opportunities and entertainment. Some people may find it better to live next door to the excitement of New York. New Jersey can also offer a lower cost of living, even though some locations are just across the bridge from the Big Apple. The Garden State might just be the best place to build a life in the area. 

If you're excited by the opportunities in New Jersey, contact The Dekanski Home Selling Team of RE/MAX 1st Advantage with New Jersey Real Estate Network at (800) 691-0485 to get in touch with our experienced team of real estate agents and discover the perfect New Jersey home for you today.