Understanding the cost of living in Newark, NJ, is important if you’re considering buying a home in this incredible city. In this guide, we explore several essential Newark living costs, from housing and transportation expenses to health care, taxes, and recreation, so you can make an informed decision about settling down in this lovely East Coast area.

Summary:

• Cost of Living in Newark, NJ
• Comparing Average Home Prices and Rent Costs in Newark, NJ
• Other Living Expenses in Newark, NJ
  • Grocery Shopping and Dining Out in Newark
  • Transportation Options and Fuel Costs in Newark
  • Healthcare and Insurance Costs in Newark
  • Utilities, Internet, and Phone Expenses in Newark
  • Tax Rates in the Newark Area
  • Recreation Costs in Newark, New Jersey
• Average Salary in Newark
• Average Cost of New Construction Homes in Newark by Neighborhood
• Conclusion

Cost of Living in Newark, NJ

Gaining insight into Newark’s general living expenses can help you confidently navigate life here. Before delving into the finer details, let's look at the overall earnings needed to cover the cost of living in Newark, New Jersey.

According to Payscale®, average Newark living costs are about 21% higher than the national average as of June 2024. To help put this information into perspective, the MIT® Living Wage Calculator estimates that in Essex County (where Newark is situated), the required annual income before taxes for an adult with no children needs to be around $47,834 to cover the Newark, New Jersey, cost of living, as of February 2024. A household of two working adults and two children requires an income closer to $114,519 annually.

Breaking down those average income figures even further, the MIT Living Wage Calculator estimates the living wage for an adult with no children needs to be $23 per hour as of February 2024. For a household of two working adults and two children, that amount jumps to $27.53 per hour.

Comparing Average Home Prices and Rent Costs in Newark, NJ

With an abundance of neighborhoods, you’ll find a wide range of housing options in Newark, NJ. Per Payscale, housing costs run about 52% higher than the national average as of June 2024. 

As of May 2024, Newark’s median selling home price is $400K, according to Realtor.com®, and homes typically sell within 49 days. SmartAsset® data from June 2024 finds that in New Jersey, you can expect an average mortgage payment to be around $3.5K monthly for a $400K mortgage.

If you’re holding off on homeownership, as of June 2024, the average monthly rent in Newark for a one-bedroom apartment is $1,432, according to Apartments.com®. A two-bedroom apartment averages $1,839 monthly, and a three-bedroom averages $1,947.

Other Living Expenses in Newark, NJ

From health care to transportation and groceries to utilities, everyday expenses make up a significant portion of the cost of living in Newark, NJ. So, let's explore the living costs for daily essentials around the city.

Grocery Shopping and Dining Out in Newark

From stocking the pantry to a meal at a local restaurant, food and groceries run 5% higher than the national average, per Payscale as of June 2024.

The MIT Living Wage Calculator states that a single adult with no children spends around $4,957 annually for groceries, based on February 2024 data. A larger household of two working adults and two children pays roughly $14,569.

For grocery staples, Payscale offers a quick rundown of what you can expect to pay (as of June 2024), though these prices can fluctuate:

• Loaf of bread: $4.06
• A gallon of milk: $2.54
• One carton of eggs: $2.36
• Bunch of bananas: $3.52
• Hamburger: $5.37

When you want to dine out, Newark has a plethora of amazing restaurants to visit, and prices vary from place to place. For example, Vonda’s Kitchen offers a delicious menu of homemade staples that hit the spot any time of day, with brunch dishes that average $10 to $20. For a nice date night, you’ll find entrees at Manu’s, a popular sushi spot, run roughly $30 to $50 per person.

Transportation Options and Fuel Costs in Newark

Transportation expenses in Newark are 12% higher than the national average, according to Payscale in June 2024. The Living Wage Calculator’s February 2024 data breaks that percentage down per person, finding a single adult spends approximately $8,900 annually for transportation costs, while a household of two working adults with two children averages $14,900. Another Newark living cost to be aware of is gas prices, which average $3.46 per gallon per AAA® as of June 2024.

If you're looking for alternatives to driving, NJ Transit^® offers commuters a few choices, with bus, train, and light rail options for New Jersey and neighboring New York City. Fares vary depending on the mode of transportation, departure station, and destination. For example, a one-zone local bus fee averages $1.60–$1.80, and a train from Newark Penn Station to the Newark Airport costs $11.

Healthcare and Insurance Costs in Newark

Taking care of your health and the health of your loved ones is essential, and healthcare costs in Newark are 7% lower than the national average, per Payscale as of June 2024. While these costs can vary depending on your situation, the Living Wage Calculator estimates medical expenses to be $3,337 annually for one adult. For a household with two working adults and two children, that yearly cost increases to an average of $9,325.

Payscale shares the average cost of some common medical expenses you might encounter in Newark, based on June 2024 data:

• Doctor's appointment: $116.29
• Dentist: $100.33
• Optometrist: $109.54
• Prescription: $428.47
• Veterinarian: $65.66

Utilities, Internet, and Phone Expenses in Newark

An analysis of the cost of living in Newark, NJ, wouldn’t be complete without addressing the expense of keeping the lights, heat, and internet running. As of June 2024, Payscale finds utility costs run 13% higher than the national average, which translates to a monthly energy bill of approximately $199 to keep your home cozy and well-lit year-long.

Having reliable internet and phone service is also a must, though the cost depends on your needs and the size of your household. The MITLiving Wage Calculator estimates that a single adult with no children spends around $1,400 annually for internet and mobile services as of February 2024. Meanwhile, a household of two working adults and two children spends roughly $2,000 per year.

Tax Rates in the Newark Area

In Newark, the minimum combined sales tax rate for 2024 is 6.625%, according to the New Jersey Division of Taxation. For annual income taxes, the MIT Living Wage Calculator finds an adult with no children pays approximately $6,775, and a household of two working adults and two children can expect to pay about $13,037 as of June 2024.

Recreation Costs in Newark, New Jersey

When it comes to fun things to do in Newark, NJ, you’ll find freebies and splurge-worthy experiences around the city. Here are some popular attractions in Newark and their respective price tags:

• New Jersey Performing Arts Center (NJPAC): Depending on the performance and seating, ticket prices at NJPAC can range from free for community events to over $100 for popular performances.

   

• The Newark Museum of Art: General admission to this museum is typically $10 for adults and $8 for seniors, teachers and students, and children ages 3–12.

   

• Branch Brook Park: Admission is free to this beautiful park known for its cherry blossoms, jogging paths, and recreational facilities.

   

• Prudential Center: Ticket prices for events at the Prudential Center vary widely depending on the performer, team, and seating location, ranging from $20 to several hundred dollars.

   

• Ironbound District: The Ironbound District is known for its diverse culinary scene. While dining out here can depend on the restaurant and cuisine, you can expect to spend around $30 to $50 per entree at a seafood restaurant, for example.

   

• Newark Public Library: Admission to the Newark Public Library is free for all visitors. It's a great place to enjoy reading, research, and various educational programs.

Average Salary in Newark

As of May 2024, the annual salary in Newark averages $78,997, per ZipRecruiter®, which is approximately $37.98 hourly, $1,519 weekly, or $6,583 monthly.

However, Newark salaries can cover a wide range, depending on the industry and position. For instance, the annual salary for management positions typically averages $170,260, while jobs in food prep and serving tend to have a lower yearly salary of roughly $37,500, according to February 2024 data from MIT. 

Average Cost of New Construction Homes in Newark by Neighborhood 

If building a new home is your goal, there are several beautiful areas in Newark, NJ, where that’s possible. Let’s uncover the average cost of new construction homes in a few of Newark's popular neighborhoods.

Far Hills

Far Hills, also in Somerset County, is a charming suburb with an upscale country feel featuring rolling hills, lush landscapes, and stunning estates. If you're a horse lover, you'll feel right at home here, especially during the annual Far Hills Race Meeting, one of the most prestigious steeplechase events in the country. The quaint downtown area has boutique shops and cozy cafes.

As of June 2024, the cost of a new construction home in Far Hills ranges from the mid $1.1M to upper $1.5M, according to NewHomeSource®. New construction homes in Far Hills from Pulte® start in the upper $900Ks.

Hoboken

This lively city in Hudson County is bursting with character with its historic brownstones, busy waterfront, and unbeatable views of the New York City skyline. Whether you're strolling along the waterfront, grabbing a slice at iconic spots like Benny Tudino's, or soaking up the nightlife along Washington Street, there's always something happening in Hoboken.

As of March 2024, the cost of a new construction home in Hoboken runs from the upper $500Ks to the upper $3.7M, according to NewHomeSource.

Morristown

This charming town is steeped in history, with landmarks like the Morristown National Historical Park, the site of George Washington and his troops’ winter encampment during the Revolutionary War. Here, you can explore the city’s quaint streets lined with boutiques, dine at top-notch restaurants, or catch a show at the Mayo Performing Arts Center. Plus, with its convenient location and easy access to transportation, including NJ Transit trains to New York City, Morristown offers an ideal blend of small-town charm and big-city convenience.

According to NewHomeSource, the cost of a new construction home in Morristown ranges from the mid $800Ks to upper $900Ks as of March 2024.

Wharton

Wharton is a cozy borough in Morris County. You can spend your days here exploring the trails of Allamuchy Mountain State Park or casting a line at Lake Denmark for some prime fishing. With its rich industrial past, including the former site of the Wharton® and Northern Railroad®, there's plenty for history buffs to discover, too. When you want to dine out, you can satisfy your cravings at local eateries like Casa D’Pizza or Andy's Roadside Dive.

The cost of a new construction home in Wharton, according to NewHomeSource^®, ranges from the low to upper $500Ks as of June 2024.

Conclusion

We hope this guide to the cost of living in Newark, NJ, is a valuable resource as you begin your homebuying journey in this dynamic and diverse city. With a greater awareness of these Newark living costs, you can better plan for a home and lifestyle that aligns with your budget and goals.

Explore new construction homes in Newark, NJ, today or browse more Pulte blogs. 

Written By: Jordan Thomson, Freelance Writer

Last Updated: 7/17/24