Cost of Living in New Jersey in 2022 

Cost of Living in New Jersey in 2022 

The cost of living in New Jersey is more expensive than it is on average across the U.S. as a whole. According to data from the Bureau of Economic Analysis, goods and services in the state cost 15.2% more than they do on average nationwide. Compared with all other states, New Jersey has the fourth-highest overall cost of living.

In general, living in dense, urban metro areas is more expensive than living in more rural areas — however, this is not always the case. New Jersey is home to four metropolitan areas. The most expensive in the state is the Trenton metro area, where the cost of goods and services is 8.6% higher than the national average and 6.6% lower than the statewide average. In this article, we will walk you through the cost of living in New Jersey and how much you should budget if you want to relocate to New Jersey.

Cost of Living in New Jersey

One of the oldest states in the U.S., New Jersey was admitted as a state in 1787. Although the capital is Trenton, the largest city is Newark. As of the 2019 count, the state’s population is 8.9 million, making it the 11th largest in the country. Much of the state is considered part of the New York City metropolitan area. As such, it shares the economy of one of the largest metro areas in the country.

New Jersey is famously within a day’s drive from 40 percent of the people in the United States. It is a hub for manufacturing and transportation due to its proximity to one of the busiest shipping ports in the world.

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. The state ranks as the ninth most expensive state in the U.S. wedged in between Connecticut and Rhode Island. Costs within the community are expected to rise modestly in the future. In the last year, the cost of living in New Jersey rose by 1.6%. The largest increases in costs can be expected to occur in housing, transportation, and food. Read on for more details about what makes up the cost of living 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 42.4% more expensive. That means it would take $142 in the Garden State to purchase $100 worth of housing in other states. 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 $382,000. However, it’s possible to find homes much higher and much lower than this mid-range value. In general, costs have risen about 11.5% over the last year.

Trenton’s home prices are lower than the statewide average at $210,000, which may be good news for state government employees working near the capital. Prices in Edison hover at about $418,000 and rose only 6.6% in the past year. A home in Atlantic City costs around $130,000, although these home prices rose 18.2% in recent months.


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Median Rent

Many residents prefer to live in a community 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 $988 a month.

Rents in the state capital are a little more expensive at $1,108 each month. For about $100 more, renters can find a nice place in Newark for $1,217. On the other end, the most expensive rents can be found in Hoboken at about $3,529 a month.

As for New Jersey rent by apartment size, the average studio apartment in the state costs about $989. Renting a single-bedroom apartment would require $1,159. Adding a bedroom raises the price to $1,432, and a three-bedroom costs $1,837. For maximum space, rent a four-bedroom apartment or house for $2,125 on average.


While housing costs are high whether you rent or buy, there is some good financial news in the Garden State. According to the March 2022 Save on Energy Electricity Bill Report, New Jersey consumes an average of 683 kWh per month. They pay an average monthly energy bill of $109.28. That’s $13.51 cheaper than the U.S. average of $122.79.

Prices can be higher in big cities, though. According to, the average monthly utility bill for a 915-square-foot apartment in Newark, NJ is $291. In Jersey City, it’s $88.70. And in Trenton, it’s $150.83.


The MIT Living Wage Calculator says that an adult with no children in New Jersey requires a living wage of $33,696 before taxes. Of that annual income, food expenses account for $3,690, or 10.95%, which doesn’t allow many luxuries.

Food expenses vary within New Jersey. Based on 2022 data from, the average cost of a gallon of milk and a dozen eggs in Newark is $4.24 and $2.59, respectively. In Jersey City, those prices remain close at $4.20 and $2.90, which is still higher than the national average price for a gallon of milk and a dozen eggs at $3.32 and $2.33, respectively.


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 $1,415 for single coverage. Employees of private companies in New Jersey can expect to pay about $1,595 for health care in addition to any employer contribution.

As for individual medical costs in New Jersey, expect to pay about $114 for each doctor’s visit. On the other hand, dental check-ups will cost about $98 each, with eye doctor appointments about the same at $107. Be ready to pay about $454 for medications each year.

Those with pets will likely pay about $58 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 $20 a bag, while a bag of treats like rawhide bones might add another $18. Buying a new toy and bed for four-legged buddies might run as little as $17 but could easily reach $190 for top-quality combinations.


Many of New Jersey’s residents commute by public transportation. After New York City, Jersey City, Hoboken, and Newark have some of the highest proportions of public transportation users in the country. According to the Census Bureau, the average commute time in New Jersey is 37.7 minutes in 2019. That’s just over 10 minutes longer than the average commute in the U.S., which is 27.6 minutes.

If you don’t take public transportation, you’ll need to pay for a car. According to GasBuddy data from March 2022, the average price of a gallon of gas in the Garden State is $4.27. When it comes to car insurance,’s March 2022 report ranks New Jersey 30th in the nation with an average annual premium of $1,319.


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 free and paid activities and entertainment.

Art lovers can visit Grounds for Sculpture art park in Hamilton for about $20. 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 $40 each.

Gamble and take in a show in the world-famous Atlantic City at the Hard Rock Hotel and Casino. Rooms start at $89 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 around $49.


New Jersey taxes are among the highest in the nation. The top tax rate in New Jersey’s progressive state tax system is 10.75% for those over $5 million. That may sound high, but it’s still lower than the top income tax rates in California and Hawaii.

Property taxes in Garden State are the highest in the nation, however, with an average effective property tax rate of 2.40%. This is significantly higher than the national average of 1.19%.


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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.

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