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New Jersey Named One of the Most Expensive States in 2025

Illustration of the cost of living in New Jersey in 2025.

News Summary

A recent SmartAsset study reveals that New Jersey is one of the most expensive states for comfortable living in 2025. A single adult requires an income of $108,992, while a family needs $282,714. Compared to the previous year, these figures mark significant rises. With a cost-of-living index of 114.2, New Jersey ranks 11th highest in the U.S. The analysis also highlights Pompton Lakes as the most livable city in the state. As costs continue to rise, financial preparedness becomes essential for current and future residents.

New Jersey has been identified as one of the most expensive states for comfortable living in 2025, according to a recent study by SmartAsset. The analysis highlights that a single adult in New Jersey requires an annual income of $108,992 for a comfortable lifestyle, while a family of four needs $282,714. These figures signify an increase of nearly 6% and over 12%, respectively, compared to the previous year.

In the study, New Jersey ranked 6th overall for both single adults and families, indicating the state’s high cost of living. Specifically, the research applied the 50/30/20 budget rule, which suggests allocating 50% of one’s income to necessities, 30% to discretionary spending, and 20% to long-term financial goals, to ascertain the incomes required for comfortable living across different states.

For context, neighboring states also show varying living expense requirements. Pennsylvania ranks 22nd with single adults needing $95,306 and families requiring $248,435. Delaware, on the other hand, ranks 21st for single adults at $97,469 and 25th for families at $223,142.

The average income required for a comfortable lifestyle in New Jersey is $88,563, underlining the financial pressures faced by residents. Housing, a significant factor contributing to living expenses, is notably among the highest in the nation, surpassed only by states like California, Hawaii, Massachusetts, and New York.

As for the most livable city within New Jersey, Pompton Lakes stands out with a livability score of 92. The median income in Pompton Lakes is reported at $113,781, with an average monthly expenditure of $2,244, summing up to a total living cost of approximately $5,258 per month.

Moreover, New Jersey’s cost-of-living index registers at 114.2, positioning it as the 11th highest in the United States. The state is also experiencing population growth, boasting an increase of over a million residents since 2020, bringing the total population closer to 9.6 million by 2025.

Driving home the increasing cost of necessities, data reveals that goods priced at $100 three years ago have now risen to $120. Specific items such as eggs have seen prices soar from $1.69 in 2020 to more than $5 per dozen in 2025.

In terms of debt, the average credit card debt in New Jersey is noted to be $5,953, ranking 22nd highest nationwide. Additionally, the average individual income sits at $61,736, while the average household income is approximately $101,050. Despite the high income levels, New Jersey grapples with a poverty rate of 9.77%.

Other northern states also face higher living expenses, with Massachusetts being the most expensive, requiring an income of $313,747 for families. This is indicative of a regional trend, as states like Vermont, New York, Maryland, and New Hampshire maintain higher living costs than New Jersey itself. In comparison, California ranks third in terms of living costs, while Arizona is positioned at 15th.

As new residents continue to flock to New Jersey, the implications of these rising costs become increasingly important for both new and current residents, underscoring the need for financial preparedness in navigating the state’s demanding economic landscape.