Considering a move to New Jersey? This state offers a rich mix of coastal towns, busy suburbs, and strong job markets. However, understanding the average cost of living in New Jersey is key for anyone planning to relocate here.
New Jersey’s cost-of-living index stands at 119.8. That is approximately 20% higher than the national average. Therefore, it is more expensive than most nearby states. Here’s a closer look at what expenses to expect across housing, utilities, and more in New Jersey’s vibrant regions.
TL;DR: Average Cost of Living in New Jersey 2025
- Cost-of-living index: 119.8 (20% over US average).
- Median required salary: $101,050 for households; $61,736 for individuals.
- Average rent statewide: $2,500/month.
- Median home price: $569,314.
- Average monthly electric bill: $183–$190 (top 5 in US).
- Groceries: $7,549/year (8% below US average).
- Healthcare premiums: About $500/month (individual).
- Childcare: $1,217/month.
- Gasoline: $1.01/liter ($3.14/gal), 6–9% above US average.
- Median household income: $101,050.
- Minimum wage: $15.49/hr.
How Expensive Is Living in New Jersey in 2025?
The average cost of living in New Jersey means higher living expenses compared to much of the United States. Most New Jersey households need at least $101,050 a year. Single people should expect to earn about $61,736 to live comfortably.
For example, Jersey City, Newark, and Hoboken are on the higher end because of their closeness to New York City. Meanwhile, Princeton, New Brunswick, Cherry Hill, and Atlantic City offer slightly lower costs. However, all these places are above the national average.
- Rent: $2,500 per month statewide. In Jersey City, it can reach $3,000. Trenton averages closer to $1,800.
- Utilities: $183–$190 per month due to higher electric bills.
- Groceries: Around $630 per month. This is 8% less than the US average.
- Transit: NJ Transit passes, $130–$216 each month.
- Healthcare: $500 per month for individuals. Families average $1,483.
- Childcare: $1,217 monthly for daycare and about $1,082 for preschool.
Housing and Rental Market in New Jersey
New Jersey’s housing market is often the biggest challenge related to the average cost of living in New Jersey. The average rent statewide is $2,500 each month. This is high, but not unexpected for this region.
Buying a home is also costly. The median home price now stands at $569,314. As a result, this is higher than every regional neighbor except New York.
State-to-State Rent and Home Comparison
- Average rent:
- 55% higher than Pennsylvania
- 26% higher than Connecticut
- 11% lower than Massachusetts
- 38% lower than New York
- 25% higher than Maryland
- Median home price:
- 93% higher than Pennsylvania ($294,000)
- 8% higher than Connecticut ($526,000)
- 28% higher than Massachusetts ($445,000)
- 14% higher than New York (~$500,000)
- 37% higher than Maryland ($429,000).
In Jersey City or Hoboken, rents often top $3,200 for a one-bedroom. In Edison and Parsippany, monthly rents average $2,200. Meanwhile, in shore areas like Asbury Park or Cape May, expect to pay a premium for ocean views. On the other hand, South Jersey places like Cherry Hill offer more affordable prices.
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Utilities and Other Living Expenses in New Jersey
Utility costs add to the overall average cost of living in New Jersey. Power bills run high in New Jersey. For example, the average electric costs $183 to $190 monthly. This ranks among the top five most expensive states for utilities.
Comparison With Nearby States
- New York: 13% above the US average; similar bills as NJ.
- Pennsylvania and Maryland: Both are about $183 per month.
- Connecticut: 36% over the national average.
- Massachusetts: $221 per month, 45% higher than the norm.
Food, however, is more affordable. Most households spend $7,549 each year, or $630 per month. This is about 8% less than the national figure—and up to 30% less than some neighbors.
Groceries vs. Peer States
- NY: +13% over US avg.
- PA: +2% over US avg.
- CT: +3% over US avg.
- MA: +4% over US avg.
- MD: +7.5% over (~$8,500/year).
Gasoline costs more, at $1.01/liter ($3.14/gal). NJ Transit passes run $130–$216. In places closer to New York, commuters pay a bit more, but reliable public transit helps manage costs.
For healthcare, premiums are about $500 monthly for singles and $1,483 for families. New Jersey costs are higher than Pennsylvania but lower than New York. If you have Medicare, out-of-pocket expenses are capped at $2,000 for the year.
Income and Job Market in New Jersey
New Jersey’s economy is strong. The median household income of $101,050 is one of the highest in the country. Also, the state’s minimum wage is $15.49 per hour. This helps many get by despite high expenses.
Quick Salary Comparison By State
- New York: $74,000 median
- Pennsylvania: $68,000 median
- Connecticut: $89,000 median
- Massachusetts: $86,000 median
- Maryland: $87,500 median
Therefore, New Jersey remains a top choice for people in finance, tech, and healthcare—especially near Newark, Princeton, and Woodbridge.
Is New Jersey’s Living Cost Worth It?
New Jersey’s high costs bring clear benefits. Easy trips to New York City and Philadelphia, top public schools, and lots of local charm. However, you will pay more for housing and power.
Groceries and childcare cost less than in many other states. As a result, dual-income households often manage well, while value-seekers may be happier in Pennsylvania or Maryland.
New Jersey’s Regional Insights
- North Jersey: Highest costs, but great for working in NYC. Hoboken and Fort Lee are ideal for easy commutes.
- Central Jersey: Princeton and Edison balance jobs with more moderate living expenses.
- South Jersey: Cherry Hill and Voorhees are best for lower costs and a quick ride to Philly.
- Jersey Shore: Asbury Park and Long Branch have prime beach access, though housing costs extra for the view.
How New Jersey’s Living Cost Compares Regionally
New Jersey is firmly in the “expensive” camp. However, earnings are high, and the benefits are real. The average cost of living in New Jersey reflects this balance—steep housing costs but good jobs, thriving communities, and lower food and childcare bills compared to nearby states.
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FAQs
Is New Jersey very expensive compared to other states?
Yes, New Jersey's living costs are about 20% higher than the national average, and rents are higher than in nearby states like Pennsylvania and Maryland.
What is the average rent in New Jersey in 2025?
The average rent in New Jersey in 2025 is $2,500 per month, which is higher than many neighboring states but lower than in New York City.
How much do you need to earn to live comfortably in New Jersey?
To live comfortably in New Jersey, households need at least $101,050 per year, while individuals should aim for $61,736 annually.
Are some regions of New Jersey more affordable?
Some regions of New Jersey are more affordable. South Jersey towns like Cherry Hill and Trenton have lower living expenses compared to other areas.
Are groceries and childcare less expensive than in other states?
Groceries and childcare are less expensive in New Jersey than in most nearby states, particularly compared to New York and Massachusetts.
