Cost of Living in Dover, NJ

An Overview of Cost of Living in Dover, NJ

Knowing the cost of living in Dover allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Dover stands at 115, marking it 15% higher than the national average.

Housing costs make up a big chunk of the cost of living in Dover, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 49.2% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Is Dover Affordable?

Is Dover an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Dover is 44.3% higher than the national average, while the average monthly rent prices are 60.5% higher than average. The affordability of any location can also be influenced by median income levels. Dover has a median household income of $64,039, which is 15.8% higher than the national average.

What Factors can Influence the Cost of Living in Dover?

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Dover, the standard sales tax rate starts at 6.625%, and the income tax rates commence at 1.4%.

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Dover, the groceries index is 1.7% higher than the national average.

Where is the Data From?

The cost of living data in Dover displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.