What Is the Cost of Living in New Jersey?
Due to its close proximity to both Philadelphia and NYC, New Jersey will always be a popular destination for anyone interested in living in a vibrant community that takes advantage of all four seasons year-round.
From Newark and Jersey City to Lakewood and Edison – New Jersey is a vibe!
It’s one of the few states in the US that gives you a healthy mix of mountains, beaches, forests, plains, farm country, and urban centers – meaning there’s literally a neighborhood or town in NJ for everyone.
Just ask the more than nine million people who already call it home – they’ll tell you!
With that said, you might be wondering why so many New Jersey home buyers are hesitant about buying a home in NJ – and why so many homeowners who currently live in the state are so eager to leave.
While you’ll probably get a different answer from everyone you ask, there’s one thing many people would likely agree on when it comes to New Jersey – and it’s that the cost of living is getting a little out of hand.
What Does the Cost of Living Index (COLI) Say?
The Cost of Living Index (COLI) is a theoretical price index many people use to compare the overall cost required to maintain a certain standard of living in different cities, states, or countries around the world.
It’s published by the Council for Community and Economic Research (C2ER).
And they’ve been publishing it for nearly 60 years – starting way back in 1968.
For example, New Jersey has a 114.1 COLI score – which is 14.1 points above the national average of 100. Compared to other states, New Jersey has the 12th-highest cost of living index in the United States.
Hawaii has the highest at 179, while Mississippi has the lowest at 85.3.
C2ER also breaks down the cost of living index into six subcategories of things we spend money on – including housing, utilities, grocery items, transportation, health care, and miscellaneous goods/services.
6. Housing Costs
One of the reasons why so many people are hesitant to buy a house in New Jersey is because it’s hard to find a good deal in The Garden State – especially when you take into account property taxes, income tax rates, and more.
The COLI for housing is 136.8 in New Jersey – which is the 8th-highest score in the US.
As of July 2024, the median list price in NJ was above $575,000. The only states with higher housing costs are Oregon, Maryland, New York, California, Massachusetts, the District of Columbia, and Hawaii.
If you think now is a good time to sell your home, then contact us – we want to speak with you!
5. Utility Costs
Utility costs can include everything from your water, electricity, and gas bills to the internet, TV, sewage, trash, and recycling bills – all of which are things most people in New Jersey pay for on a monthly basis.
The COLI for utilities is 107.2 in New Jersey – the 13th-highest score in the US.
According to Forbes, the average homeowner pays an average monthly cost of $450 for utilities – including more than $110 for the energy bill, $40 for internet, $110 for the phone bill, $70 for gas, and another $70 for the water.
4. Grocery Items
It doesn’t matter what state or city you live in – items at the grocery store have been on a constant rise for several years now. And that includes all your favorite meats, dairy, snacks, bread, veggies, and even fruit.
The COLI for grocery items is 103.9 in New Jersey – the 9th-highest score in the US.
Most families in The Garden State spend anywhere between $250 and $500 per month on groceries and other food costs – but that number depends on the amount of people in that household and the habits of those you’re paying for.
3. Transportation Expenses
Transportation costs include everything from gas prices to vehicle maintenance costs, insurance costs, public transportation (buses, rideshares, etc.), tolls, parking fees, and anything else transportation-related.
The COLI for transportation is 106.1 in New Jersey – the 17th-highest score in the US.
As of August 2024, gas prices in New Jersey typically range between $3.30 and $4.20 per gallon. Since a lot of people have a long average commute time to work every morning, these gas prices tend to add up over time.
2. Healthcare Costs
If there’s a bright spot to the cost of living in New Jersey, it’s that this state has some of the best health care in the country – and it’s something most New Jersey residents are extremely proud of (righfully so).
The COLI for health care is 96.1 in New Jersey – the 14th-lowest score in the US.
It’s the only COLI score for NJ that falls below the national average – with single adults paying around $3,400 per year in healthcare-related costs, while parents spend anywhere between $6,000 and $8,000+.
1. Miscellaneous Goods and Services
And last but not least, we have miscellaneous goods and services – which includes everything from food delivery to personal care items, apparel, household operations, reading, entertainment, and much more.
The COLI for miscellaneous goods and services is 106.6 in New Jersey – the 13th-highest in the US.
With that said, most things are going to cost a little bit more in New Jersey when compared to other parts of the country – unlike Mississippi, which has a 91 COLI, or Nevada, which comes in at around 91.3.
NJ Cash Buyers: Are You Trying to Sell Your House Fast?
Is the New Jersey cost of living getting too out of hand for you? Are you looking to move to a place with a lower COLI score? Are you having a hard time finding a serious buyer for your New Jersey home?
If you answered ‘yes’ to any of those questions, then don’t worry – we’ve got you covered!
Welcome to NJ Cash Buyers – where we have a free, no-obligation cash offer just for you!
We understand that some people don’t have the time (or money) to sell their home the traditional way. If that sounds like you, then we can help you sell your home in a hurry – sometimes as soon as one week!
Feel free to contact us at (973) 791-6510 or [email protected] to receive your free cash offer!