F
59%
Overall NAT. AVG.
0%
Goods & Services NAT. AVG.
196%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index New Providence New Jersey National
Cost of living159121100
Goods & Services100106100
Groceries102102100
Health care9999100
Housing296158100
Transportation95103100
Utilities102107100

An Overview of Cost of Living in New Providence, NJ

Understanding the cost of living in New Providence can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The New Providence cost of living index is 159, which is 59% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in New Providence is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, New Providence falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a major factor in the New Providence cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 195.5% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is New Providence Affordable?

Is New Providence affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take New Providence, for instance, where the median home price falls 241.6% higher than the national average, and monthly rent rates are 88% higher than usual. Additionally, median income levels contribute to the equation, with New Providence flaunting a median household income of $149,718, 170.6% higher than the national norm.

What Factors can Influence the Cost of Living in New Providence?

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In New Providence, the utilities index registers 1.9% higher than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In New Providence, the prevailing sales tax rate starts at 6.625%, and income tax rates kick off at 1.4%.

Where is the Data From?

The cost of living data in New Providence 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.

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Cost Of Living Quick Facts

  • The cost of living in New Providence is 31% higher than the New Jersey average
  • The cost of living in New Providence is 59% higher than the national average
  • New Providence housing is 196% higher than the national average
  • New Jersey general sales tax is 30% higher than the national average
  • New Jersey state income tax is 46% lower than the national average

Most Affordable Places to Live in and Around New Providence

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Compare New Providence, NJ Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$164,926$13,744$3,848$4,948
      Renters$91,875$7,656$2,144$2,757
      A good indicator of the general affordability of housing in New Providence, NJ, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In New Providence, the median monthly income is $164,926 for those who own their own homes. Under the standard rule, that income level would allow for $3,848 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $91,875, per the median income in the area. That would allow for renters to spend up to $2,144 on monthly rental expenses.

      New Jersey Sales Tax

      State General Sales Tax With Max Surtax
      New Jersey 6.625% 12.625%

      New Jersey Income Tax

      State Income Tax (Low) Income Tax (High)
      New Jersey 1.4% 10.75%

      Goods & Services

      Item New Providence National avg. Difference
      Haircut $29.17$24.2620.2%
      Beauty Salon $40.36$45.5611.4%
      Toothpaste $3.66$3.701.2%
      Shampoo $1.44$1.2812.1%
      Movie $14.15$12.1316.6%
      Bowling $25.03$18.0039.0%

      Groceries

      Item New Providence National avg. Difference
      Ground Beef $5.64$5.843.5%
      Fried Chicken $1.55$1.571.4%
      Milk $4.74$4.671.5%
      Potatoes $5.21$4.935.7%
      Pizza $11.49$12.094.9%
      Beer $11.66$10.4112.0%

      Health Care

      Item New Providence National avg. Difference
      Optometrist $105.11$125.6816.4%
      Doctor $117.94$135.7813.1%
      Dentist $121.22$113.297.0%
      Ibuprofen $11.05$10.653.7%
      Lipitor $427.79$468.608.7%

      Housing

      Item New Providence National avg. Difference
      Home Price $631,000.00$184,700.00241.6%
      Avg. Mortgage Payment $3,303.56$2,346.6940.8%
      Apartment Rent $1,784.00$949.0088.0%

      Transportation

      Item New Providence National avg. Difference
      Gasoline $3.45$3.460.2%
      Tire Balancing $77.33$59.9229.1%

      Utilities

      Item New Providence National avg. Difference
      All Electricity $230.68$193.9918.9%
      Phone $186.61$192.252.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Zarephath, NJ941087.8%
      Victory Gardens, NJ1,6041011.2%
      East Orange, NJ64,65011111.1%
      Roselle, NJ21,69911212.0%
      Silver Lake CDP (Warren County), NJ32011313.2%
      New Providence, NJ13,38215958.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Lone Tree, CO13,38116464.2%
      Richton Park, IL13,381982.2%
      La Grande, OR13,380981.7%
      Dardenne Prairie, MO13,38511312.8%
      Moss Point, MS13,3968614.0%
      New Providence, NJ13,38215958.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.