New Jersey’s family expenses now rival New York’s after steep cost hikes
A recent study shows that rising childcare, housing and healthcare costs have erased the traditional cost advantage of living in New Jersey over New York.
According to the Living Wage Institute, the cost of living for New Jersey families has surged by $40,800 since the pandemic, largely due to soaring childcare, housing and healthcare expenses. Childcare costs have risen 57% statewide since 2021, while housing prices jumped 37.5% and healthcare costs climbed 55.5%. These increases outpace the 25% rise in New York and 30% in Pennsylvania over the same period, erasing the historic affordability advantage of New Jersey.
Residents such as Kristyna Frantz, who relocated from Washington Heights to Fanwood in 2024, now spend about $5,000 monthly on childcare for three children—more than they would have paid in the city. Economists like Jeffrey Otteau warn that households earning $150,000 or less can no longer count on New Jersey as a cheap alternative, and advocacy groups such as Start Strong NJ highlight that childcare has become the largest expense for many young families.
Why it matters
Rising family costs in New Jersey challenge the assumption that suburban living is a cheaper alternative to New York City.
In this story
