Why Is Jersey City So Expensive? (All Costs Listed!)
For over 10 years, our team has navigated nearly every route and neighborhood in Jersey City. Often called the unofficial 6th borough of NYC, Jersey City is the 2nd most populous city in New Jersey. It’s no secret that Jersey City is expensive, but that doesn’t stop people from moving there.
At Optimum Moving, we frequently handle moves to and from Jersey City. Many of our customers work in NYC and commute from Jersey City daily. As expensive as Jersey City is, it’s still roughly 27% more affordable than living in NYC.
The high cost of living in Jersey City is an amalgamation of high housing costs, utilities, and grocery prices. Our team has seen firsthand how the high cost of living in Jersey City is worth it to many young, single professionals and families alike. Follow along as we explore why Jersey City is so expensive compared to state and national averages.
Average Cost of Living in Jersey City
Today, the cost of living in Jersey City is 26% higher than the national average. However, homeowners with families and big homes may spend up to 39% more on living costs than the national average. This ultimately comes down to housing, utilities, transportation, and grocery costs.
That said, countless New Jersey residents move to cities like Hoboken and Jersey City despite the high living expenses. These cities are expensive, but the proximity to NYC and the many great job opportunities are worth it to many people. Follow along as we take a deep dive into the cost of living in Jersey City.
Home Value
Housing costs are a big part of why Jersey City is so expensive. Today, the median home value in Jersey City is $625,250, according to Zillow. The homeownership rate in Jersey City is 34.8% lower than the state homeownership rate.
According to the Census Bureau, over 45% of the houses in Jersey City are worth between $500,000 and $999,999. The high housing costs in the area have a lot to do with the low 29.8% homeownership rate.
While houses are expensive in Jersey City, they are great investments because of the high appreciation rate. Recently, the appreciation rate in Jersey City increased by 10.8%.
Rent
Today, 70.2% of Jersey City residents rent apartments and houses because of the prohibitive cost of ownership. The median gross rent in Jersey City is $1,832 compared to the median rent cost of $1,555 in New Jersey. That said, 19.6% of Jersey City residents pay over $3,000 per month in rent.
Luckily, just over 24% of renters in the area pay between $1,500 and$2,000 per month in rent. The state average cost of rent in New Jersey is over $2,000. Granted, expensive cities like Jersey City and Hoboken account for the high end of the spectrum for that average.
Taxes
Despite the high cost of living in Jersey City, the sales tax rate isn’t as expensive as you’d expect. The combined sales tax rate in Jersey City is 6.63%. This figure is a combination of city, county, and state sales tax rates.
Like most states, New Jersey has a graduated state income tax rate that is split amongst several brackets. Depending on your income, you will get taxed between 1.4% and 10.75%. This is much lower than states like California and Hawaii which carry state tax rates up to 13.3% and 11%, respectively.
Utilities
Utility bills in Jersey City aren’t much higher than the national average. For example, the average combined cost of utilities in Jersey City is roughly $204-$630 per month. This includes the cost of gas, water, power, phone service, and Internet use.
Keep in mind that the cost of utilities depends on home size and usage. You will pay much more in utilities if you live in a 3-bedroom house than in a 1-bedroom apartment.
For example, Jersey City residents who live in 915-square-foot apartments pay an average total of $118 for all basic utilities. TheInternet and phone bills roughly add another $105, on average, for single residents without children.
Groceries
Groceries are essential expenses you cannot skip, and they can get quite expensive in Jersey City. For example, a loaf of bread costs an average of $3.15 in Jersey City. Basic groceries, like a gallon of milk, cost $3.90, on average.
The average person in Jersey City typically spends over $12.80 per day on groceries. This comes out to $384 per month for the average single resident without children. Of course, the cost of groceries becomes significantly inflated once you factor in a spouse and children.
Transportation
While many Jersey City residents own cars, many commuters in the city rely on public transportation. Today, nearly 50% of Jersey City residents use public transit to work daily. Luckily, public transit prices are reasonable in Jersey City as local bus passes cost $1.80.
Bus routes that span 2-4 zones cost between $2.55 and $3.90 per pass, respectively. Recently, bus ticket prices increased by 15% in Jersey City, but it’s still a cheap method of transportation. Many commuters take the tram from Jersey City to NYC, and that starts at $2.75 per ride.
However, it’s worth it to get a 30-day pass for $110.25 if you commute daily. This can save you over $50 on train tickets, depending on how often you take the train. You can also hail a taxicab from Jersey City to NYC, but that costs an average of $3.30 per mile.
Call Optimum Moving for Your Jersey City Move
Despite the high cost of living, Jersey City is one of the most populous cities in New Jersey. Living in Jersey City affords residents many opportunities that are worth the cost. Such luxuries, like the short commute to NYC and great job opportunities, are part of why Jersey City is so expensive.
As Jersey City movers, we are familiar with many of the best routes and neighborhoods in the area. We have nurtured great relationships with property managers and landlords in Jersey City as well. This helps us arrange and schedule smooth, stress-free moves in Jersey City. Call Optimum Moving at (855) 315-6683 to schedule your Jersey City move today.