Newark Cost of Living 💰[2025] | What is the Cost of Living in Newark NJ?
Moving to a new city can be both an exciting adventure and a stressful task, especially when it comes to understanding the financial landscape of your future home. If Newark, NJ, is on your radar, then you’re likely curious about what it will cost to live comfortably in this bustling urban environment. So, let’s explore the cost of living in Newark NJ, shedding light on key factors such as transportation expenses and housing costs. Whether you’re relocating for a job, school, or simply a change of scenery, having a clear picture of these expenses will help you to plan your budget and make informed decisions about your move.
Newark Cost of Living Index
Is Newark expensive? The best way to get a good understanding of the cost of living in Newark New Jersey is to take a look at the Newark Cost of Living Index. The Cost of Living Index, also known as COLI, is published by the Council for Community and Economy Research and is used to compare the cost of goods and services in urban areas to the national average. So what is the Cost of Living Index in this Essex County city?
The Newark Cost of Living Index is 123.8, making the city 23.8% more expensive than the national average of 100. The overall cost of living in Newark New Jersey is above the national average in nearly every expense category, aside from healthcare.
Consumer Price Index (CPI)
Another strong way to analyze the cost of living in Newark NJ is to consider the Consumer Price Index. The CPI is a report published on a monthly basis by the Bureau of Labor Statistics. This cost of living data reports the average changes in prices that consumers in a city pay for goods and services. Newark is a part of the New York-Newark-Jersey City region.
Over the past year, the Consumer Price Index in Newark New Jersey rose 3.9%. Over the past month, the CPI has risen 0.4%. The biggest contributors to this rise in prices are energy (increased by 8.2%), housing (increased by 5.9%), and transportation (increased by 4.9%). A few categories where the prices went down include the expense category of apparel (down 2.8%) and medical care (down 1.6%).
Consumer Expenditure Survey
The Newark NJ cost of living can also be analyzed by taking a look at the Consumer Expenditure Survey. This survey is also conducted by the Census Bureau and is used to help calculate the final CPI of a region. According to the latest Consumer Expenditure Survey, households in Newark, New Jersey spent an average of $83,064 during the 2021-22 calendar year, which is well above the national average of $70,052.
Here’s a more detailed look at this cost of living data:
- Housing expenses: 37.6% of total household income (compared to national average of 33.5%)
- Food: 12.8% of total household income (compared to national average of 12.6%)
- Personal insurance, pensions, and retirement planning costs: 12.8% of total household income (compared to national average of 11.9%)
- Transportation expenses: 12.4% of total household income (compared to national average of 16.6%)
- Healthcare: 6.2% of total household income (compared to national average of 8.1%)
- Entertainment: 4.1% of total household income (compared to national average of 5.0%)
- Education: 3.3% of total household income (compared to national average of 1.8%)
As you can see the cost of living in Newark NJ is above the national average when it comes to housing, food, personal insurance, and education. Transportation, healthcare, and entertainment expenses are all below the U.S. average. Newark has a great public transportation system, which allows the total cost of this category to decline.
Family Budget in Newark
What is the Newark NJ cost of living for your family? According to the Economic Policy Institute’s Cost of Living Calculator, a family of four living in this Essex County city would need to earn $117,799 per year to live comfortably in the area. This comes out to about $9,817 per month. Here’s how these costs break down monthly.
- Child care: $1,985
- Housing expenses: $1,606
- Transportation expenses: $1,440
- Taxes: $1,332
- Health care: $1,326
- Food: $1,151
- Other necessities: $976
Although these are rough estimates for the monthly cost of living in Newark, New Jersey, these numbers can vary based on the size of your family, and your lifestyle. For example, a family of two with no children would only need to earn $67,875 per year ($5,656 per month). Additionally, you can cut back on expenses by taking public transport and cooking food at home.
Cost of Household Items, Utilities, Gas & Groceries in Newark NJ
What is the cost of living in Newark NJ? When answering this question, you’ll want to consider the overall cost of daily expenses that you’ll encounter when living in the area. These are just a few average costs of items in Newark New Jersey.
- Steak (1lb): $8.49
- Milk (1 gallon): $5.02
- Eggs (1 dozen): $3.93
- Potatoes (5lbs): $7.20
- Bread (1 loaf): $3.99
- Beer (1 bottle): $8.00
- Movie ticket: $14.00
- McDonald’s meal: $10.25
- Average cell phone bill: $50.69
- Gas (1 gallon): $3.79
Source: Numbeo
When it comes to utilities in Newark New Jersey, you can expect to pay about $170.23 per month. If you own a car in the city, then you will pay around $57 per month for car insurance, according to CarInsurance.com. However, you do not necessarily need a vehicle when living in the Newark, New Jersey area. NJ Transit runs several bus and train lines in the city.
Newark NJ Real Estate Market
Housing costs are one of the most significant expenses when considering the cost of living in Newark NJ, making up a large percentage of the total cost of living. Buying a house in New Jersey can be pricey, regardless of whether you are moving to the Newark suburbs or living in one of the top Newark neighborhoods.
According to Redfin, the median home price in Newark New Jersey is $559,000. The Newark housing market is thriving, and home prices are up 17.7% compared to last year. The median home price in Newark New Jersey is higher than the national average of $440,000 and the New Jersey average of $536,000.
When looking for Newark homes for sale, the price you will pay can vary greatly depending on where you decide to settle down. If you’re looking for a more affordable neighborhood, then check out the areas of Lower Clinton Hill (median home price of $488,000) or Springfield-Belmont (median home price of $400,000). Some of the more expensive neighborhoods in Newark, New Jersey, include Dayton-Weequahic Park (median home price of $885,000) and North Ironbound (median home price of $620,000).
Newark Rental Market - Average Rent in Newark NJ
If you are interested in paying monthly rent in Newark, New Jersey, then there are plenty of options for you. According to RentCafe, the median Newark rent is $1,526, which is below the national average of $1,713. The most expensive neighborhoods to rent in Newark include Industrial, North Ironbound, and South Ironbound, where the average rent comes out to $2,126. The most affordable neighborhoods are Upper Clinton Hill, Dayton, and Vailsburg, where the average rent is $1,424, $1,409, and $994, respectively.
When it comes to the cost of living in Newark, NJ, many people are curious about whether it is cheaper to buy or rent. According to the 2022 Rental Affordability Report by ATTOM, it is far more affordable to rent than to buy in Newark, New Jersey. When considering renting vs. buying in the New Jersey Newark area, you’ll want to calculate the price-to-rent ratio. The higher the price-to-rent ratio, the better the area is for renters. The lower it is, the better the area is for buyers. The price-to-rent ratio in the New Jersey Newark area can be calculated by dividing the median rent by the median home price.
$559,000 (Newark median home price / $18,312 (average annual rent) = 30.52
This is a high price-to-rent ratio, indicating that the city is better for renters. If you’re curious about the cost of living in Newark New Jersey as a renter, then take a look at the National Low Income Housing Coalition’s Out of Reach Report. According to the report, you would need to earn at least $30.88 per hour ($64,240 per year) to afford a two-bedroom apartment in the city without spending over 30% of your yearly income on housing.
Average Salary & Median Household Income in Newark
The Newark cost of living is greatly influenced by the local economy. The average income in Newark NJ for a household is $46,460. This is lower than the New Jersey average of $97,126. According to PayScale, the average salary in Newark NJ is $82,000 per year. Additionally, New Jersey’s minimum wage is $15.13 per hour.
There are several wonderful employment options for you to explore in and around Jersey City. More than 100,000 people commute into Newark every workday, making it the state’s largest employment center. The city is home to more than 1,000 law firms and is also popular in the education, finance, and insurance industries. Newark is also the busiest transshipment hub on the East Coast due to the city’s airport, maritime port, rail facilities, and extensive highway network.
A few of the top employers in Newark NJ include Prudential Financial, United, Newark Public Schools, and Amazon.
Here’s a look at a few average salaries for occupations in Newark, NJ, according to the BLS.
- Nursing assistants: $47,450
- Construction laborers: $68,210
- Clergy: $76,320
- Education and childcare administrators: $90,180
- Surveyors: $97,030
- Industrial engineers: $108,120
Income, Sales & Property Taxes in Newark NJ
When taking a look at the cost of living in Newark, New Jersey, it is important to consider the tax rates in the area.
New Jersey Income Tax Rate
The New Jersey income tax rate varies between 1.4% and 10.75%. The more income you bring in, the more you can expect to pay in taxes.
Newark Sales Tax Rate
Sales taxes are taxes that are imposed on the sale of goods and services. The Newark sales tax rate is 6.625%. Here’s how this number breaks down:
- New Jersey state: 6.625%
- Essex County: 0.000%
- Newark: 0.000%
- Total: 6.625%
Newark Property Tax Rate
The Division of Tax bills and collects all Newark property taxes and Essex County property taxes. The average property tax rate in Newark is 2.26%.
Newark vs. New York Cost of Living
Are you trying to decide between Newark vs. New York? The two cities are only 10.1 miles away from each other, so they are often compared as potential places to call home. However, the New York cost of living is significantly higher than the Newark cost of living. The Cost of Living Index in New York City is 255. This means that the cost of living in New York is 155% higher than the national average and 131.2% higher than the Newark average. So, when deciding between the two cities, Newark is the more affordable choice– and you can easily commute into New York City whenever you want!
So, what is the cost of living in Newark, NJ? Newark is a fairly affordable place to live, with just a few expenses above the national average. The city is full of affordable neighborhoods, friendly people, and fun things to do. If you are ready to make your move, then get in touch with our New Jersey movers. Harrington Moving & Storage has been serving the Newark area since 1996, providing reliable moving services to customers in the area. Give our team a call today at (973) 313-2246 to get started with a free estimate.
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