Jersey City is known for being an expensive city, but with low crime rates, it's a great place to raise a family and call home. Whether you're looking to move to Jersey City from another state or a different city in NJ, Jersey City is a great choice!
A wide variety of factors and variables increase or decrease the cost of living in a city. These can range from your lifestyle, number of kids you have, the state itself, and the neighborhood. The Jersey City cost of living index is a great tool to determine if you can afford living in a city – in this case, Jersey City, New Jersey.
The Jersey City Cost of Living Index (COLI) allows you to get a better idea about whether or not a place is affordable and if it can fit into your budget. In the state of New Jersey, the COLI is 19.8% higher than the national average, whereas Jersey City is 44.4% higher than the national average. Transportation and housing are the two highest categories.
Over the last month, the Consumer Price Index for the New York-Newark-Jersey City metro area has increased by 0.4% and 6% over the year. When it comes to energy, the CPI has increased by 8.1% over the last 12 months. Food related costs have increased 7.8% over the last year.
The Consumer Expenditure Survey for Jersey City is part of the New York-Newark-Jersey City Metro area on the BLS website; it allows you to look at the data for income, characteristics of the consumers, and expenses. In the 2020-2021 analysis, the average household In the New York-Newark-Jersey City Metro area spent $77,204, which is higher than the United States average of $64,187.
Here is a breakdown showing what the average household ends up spending their income on throughout the year:
While these prices are high, when you compare them to other North Eastern areas, Jersey City is still an affordable place to live. For example, New York, New England, New Hampshire, and Delaware are just a few of the states and areas that have a higher cost of living than the state of New Jersey.
According to the Economic Policy Institute, it’s recommended for a family of four to make $101,568 per year to live comfortably. Taking this figure into account, Jersey City is an expensive city to live in and call home.
Here is an estimate for monthly expenses based on two adults and two kids:
Source: Economic Policy Institute
When you're moving, you need to plan for unexpected expenses and popular household items in Jersey City, NJ.
Groceries are a necessity. Here's an average cost of food in Jersey City, NJ:
Source: Numbeo
If you drive a car in New Jersey, expect to pay around $3.31 per gallon for gas in Jersey City, according to the US Energy Information Administration. When it comes to public transportation in Jersey City, you have two options for buying tickets through NJ Transit. The most common option for someone who takes the bus every day is to purchase the flex pass, which gives you 20 one way tickets, and you will save 20% from purchasing full-priced tickets. If you're not someone who rides the bus often, a one-way ticket may be a better option.
Jersey City is an expensive place to live in most categories when you compare it to the rest of the United States but still cheaper than other nearby cities and metro areas, so don't let that deter you away from calling Jersey City, NJ home. Here's a breakdown of the common monthly expenses in Jersey City:
Source: Doxo
In Jersey City, NJ, on average, a car insurance policy will be around $207 per month, based on having full coverage. This rate is influenced by how much you drive per month, if you've been in an accident, your credit score, and your marital status.
According to the Census Reporter, 29% of the residents in Jersey City own a piece of real estate. Homes in Jersey City are somewhat competitive, and real estate typically stays on the market for around 60 days before being sold. The average sale price is $490 per square footage in Jersey City. If you're planning on purchasing a house in Jersey City, the median sale price is $587,000. The breakdown of pricing based on the housing type is the following:
Based on the information above, a townhouse could be a better option since it's more affordable, but it depends on your needs and lifestyle. There are plenty of beautiful Jersey City, NJ homes for sale in Jersey City.
If you can't decide whether to rent or buy a house, here is some information on the price-to-rent ratio in Jersey City. Let's say you purchase a home for $560,000. If the median annual rent in Jersey City is $39,900 for a one-bedroom apartment, you will take the price for the home ($560,000) and divide that by the annual rent ($39,900), which gives you a 1:14 ratio.
A ratio that is 1 to 15 indicates that it's better to buy, while 16 to 20 means it's better to rent, and 21+ means it’s a better idea to rent versus buy, due to sky-high prices. In this case, the ratio is 1:14, which means the market is more in your favor to purchase a home.
Jersey City has plenty of great neighborhoods to consider moving to and calling home in New Jersey. A few of those include Journal Square, The Waterfront, The Heights, and Liberty Park. Jersey City is known for being a family-friendly, kid-friendly, diverse, and wonderful place to settle down.
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The average rent in Jersey City, NJ, is $3,484 for a 793 square foot apartment; at this price, rent is higher than the national average of $1,937. Bayfront and Liberty State Park average monthly rents of $2,113, making the neighborhoods a bit more affordable. The neighborhoods of Western Slope (monthly rent of around $3,995) and Hoboken Yards (monthly rent of around $4,009) are more expensive.
When you compare the rent to a nearby city, like Newark, there is a big difference in prices. Newark has an average rent of $1,382, which is below the national average of $1,937.
Trying to decide if you rent or buy can be a big decision. Before deciding, consider taking a look at the ATTOM and their Rental Affordability Report.
If you're unsure of how much you need to make to afford rent, here's a breakdown for you. You’ll find figures from the Jersey City zip code (07030):
The average salary in Jersey City is $86,000 per year and $20.75 per hour. Some of the jobs with a higher hourly rate in Jersey City are:
The most popular occupations in Jersey City are in industries such as:
The careers above are well above the hourly rate of $14.13 in the state of New Jersey.
New Jersey has a state income tax range of 1.40%-10.75% based on your income bracket. There are normally county sales tax within the state of New Jersey, but Hudson does not have any, so the total sales tax for Jersey City is 6.63%.
New Jersey is ranked #30 out of 50 for sales tax compared to the rest of the US. To calculate the Jersey City property tax rate, divide the assessed value by $100 and multiply it by the tax rate of 2.118%.Keep this in mind when purchasing a home.
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Are you trying to decide between Jersey City and Newark? Here is a Jersey City cost of living vs. Newark, NJ!
While the home sale price is higher in Jersey City than in Newark, it's a good place to purchase a home. Plus, the average salary is higher than in Newark.
Are you thinking about moving to Jersey City, NJ? Whether you're single or married with kids, Jersey City has something for everyone and is considered a great place to call home. Catlow Movers has 90+ years of experience, has served 100,000+ customers, has a 98% customer satisfaction rate, and a <1% claim rate. Our Jersey City movers will be there for you every step of the way! Call us at 201-653-1808 for a free estimate!
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