Brace Yourself: This Is What Middle Class Looks Like In NJ

NEW JERSEY — Earning a middle-class income in New Jersey now starts at $69,529 a year, yet for many households, that threshold no longer guarantees financial stability.

The latest analysis from SmartAsset, using U.S. Census Bureau data, shows the middle-class range stretches to $208,588.

The same report ranks New Jersey as the second hardest state to enter the middle class, behind Massachusetts.

The affordability challenge nestles itself in the state's cost of living.

Data from the Missouri Economic Research and Information Center reports New Jersey has a cost-of-living index of 115.3, ranking it among the five most expensive states in the country.

Only a handful of states rank higher: Massachusetts, New York and California sit near the top, while Hawaii leads the nation at 183.9.

By contrast, the least expensive states, including Oklahoma, Mississippi and West Virginia, fall far below the national average

“And so really what that says is for somebody of a certain income, even an average income, [something] like housing has almost doubled relative to what their income has doubled,” according to economist Steven Pressman, an emeritus professor at Monmouth University and part-time professor at the New School for Social Research.

Federal data from the U.S. Bureau of Economic Analysis shows average personal consumption expenditures in New Jersey reach about $63,814 per person annually.

As housing costs rise, they consume a larger share of household income, leaving less room for other essentials.

“If you’re putting all of your money to housing … there’s just no money for even savings,” Pressman said.

State officials have pointed to policy efforts aimed at easing the burden.

Gov. Mikie Sherrill said her administration’s budget focuses on affordability without increasing taxes.

“It also doesn’t raise taxes on individuals, and it has the most property tax relief that any budget’s ever had," Sherrill said.

Some analysts have noted government policies need to address rising energy costs, which could add further strain.

Rutgers University professor Clinton J. Andrews said infrastructure limits are beginning to affect utility prices.

“In our region, we have just enough capacity to meet demand, so we need to build more power plants, which drives up electric bills,” Andrews said.

What It Costs To Live In New Jersey

• Average annual spending per person: $63,814
• Housing and utilities: $11,405
• Health care: $9,762
• Food and beverages (non-restaurant): $4,432
• Gas and energy goods: $1,238
• All other personal expenditures: $36,976

Data: U.S. Bureau of Economic Analysis (Personal Consumption Expenditures)

Transportation (annually):

• One adult (no children): $9,700
• Two adults (no children): $11,266
• Two adults, three children: $18,050

Data: MIT Living Wage Calculator (Feb. 2025 estimates)

Property Taxes:

• Median property tax bill: $9,909.50
• Mean property tax bill: $10,572.51
• Highest average tax bill: $26,298
• Lowest average tax bill: $2,101

Data: Patch analysis of municipal tax data