New Jersey Cost of Living
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Relocating to New Jersey brings access to vibrant communities, great schools and proximity to major cities like New York and Philadelphia. However, it is important to recognize that a move to New Jersey also means confronting some of the highest living costs in the country — especially when it comes to housing and everyday expenses.
To determine the cost of living in New Jersey, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent official sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in New Jersey spend $63,814 each year on goods and services, on average.
Jump to insightThe median rent in New Jersey is $2,084, versus the national median rent of $1,639.
Jump to insightResidents in New Jersey spend $274.69 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $3.05 in New Jersey.
Jump to insightRecent data shows that employees in New Jersey pay $2,057 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in New Jersey
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in New Jersey was $63,814 in 2023. This amount reflects how much residents pay each year for everything from housing and food to utilities and health care.
Here’s a breakdown of the largest spending categories in New Jersey:
| Category | Annual per-capita cost in New Jersey |
|---|---|
| Housing and utilities | $11,405 |
| Health care | $9,762 |
| Food and beverages for off-premises consumption | $4,432 |
| Gasoline and other energy goods | $1,238 |
| All other personal consumption expenditures | $36,976 |
| Total cost | $63,814 |
Housing costs in New Jersey
For most New Jersey residents, housing is by far the largest expense. According to 2025 data from Apartments.com, the average rent in New Jersey is $2,084, while the national average rent is $1,639. Rental costs can change considerably depending on city, neighborhood and unit size. The U.S. Census Bureau’s 2023 American Community Survey provides a closer look at average monthly rents in the state:
- One-bedroom rent: $1,421
- Two-bedroom rent: $1,755
- Three-bedroom rent: $1,924
- Four-bedroom rent: $2,288
If you are thinking about buying a home, the median home price in New Jersey is $584,400, which is higher than the U.S. median home price of $446,638.
Property taxes are also a significant consideration for homeowners in New Jersey, which has one of the highest effective property tax rates in the nation at 1.77%.
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Food costs in New Jersey
Grocery spending in New Jersey can add up quickly, particularly in urban centers or near tourist destinations. According to recent U.S. Census data, the average weekly grocery bill in New Jersey is $274.69, compared with the U.S. average of $270.21.
Shopping habits and location make a big difference in how much you pay for food. Those who shop at large chain stores or local markets in smaller towns may see lower grocery bills, while residents in metro areas or who frequently dine out will likely face higher costs. Families who plan meals and shop sales may find some relief, but eating out — especially in cities — can quickly drive monthly food spending higher.
Transportation costs in New Jersey
Transportation is another essential expense for New Jersey households. The average price per gallon of regular gas in New Jersey is $3.05, compared with the U.S. average of $3.13.
For drivers, auto insurance is also a key consideration. The average auto insurance premium in New Jersey, including liability, collision and comprehensive coverage, is $1,522.89, while the national average is $1,258.
Health care costs in New Jersey
Health care costs in New Jersey are slightly above the national average. The typical employee contribution for employer-sponsored health insurance is $2,057 annually, with employers covering the other $7,605 of the total $9,662 premium.
For reference, the average employee contribution across the U.S. is $1,640 out of a total premium of $8,182.
Utility costs in New Jersey
Utility costs in New Jersey are noticeably higher than the national average, which is important to consider when budgeting for housing expenses. The average monthly electric bill in New Jersey is $113.21, compared with $136.84 nationwide.
Natural gas prices in New Jersey are $12.89 per thousand cubic feet, while the national average is $12.92.
FAQ
Does New Jersey have a high cost of living?
Yes, New Jersey has a higher cost of living than the national average. Housing and rent are much more expensive here than in most states, and homeowners often face higher property taxes. Health care expenses are also slightly more than the U.S. average, although gas prices tend to be slightly less.
Is New Jersey a good place to live?
Yes, New Jersey is a good place to live if access to strong schools, job opportunities and proximity to major cities are priorities. While the cost of living is fairly high, many residents value the benefits of living near cultural and economic centers, as well as the variety of neighborhoods available.
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Is New Jersey good for renters?
Yes, New Jersey is good for renters, especially because the state offers some of the strongest tenant protections in the country. However, renters should be aware that rent prices are much higher than in most other states, and finding available units can be challenging in some areas.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
