10 reasons New Jersey is so expensive — and why it keeps getting worse
New Jersey 101.5 has been talking about affordability since 1990.
That was long before "affordability" became a campaign buzzword in 2025. On this station, it was never a slogan. It was the phone lines lighting up.
I've been part of that conversation here since 1999. The callers change. The complaint doesn't.
Still, there's something clarifying about seeing it all laid out in one place. Not as a surprise, but as proof of what we've all been living with.
Prices here run about 9% higher than the national average, according to the federal Bureau of Economic Analysis. That's the average. For the things that matter most to your budget, the gap is a lot wider.
SEE ALSO: NJ towns losing the most residents in 2026: updated list
The 10 costs that make New Jersey one of the most expensive states
1. Property taxes. The average New Jersey property tax bill hit $10,570 in 2025, according to the state Department of Community Affairs.
You pay it whether you're working, retired or somewhere in between. And Trenton has been promising reform for decades.
2. Housing. The median value of an owner-occupied home in New Jersey is $454,400, and median rent is $1,720 a month, according to the U.S. Census Bureau. That's the statewide median. Near New York City, it's much higher.
3. Car insurance. Full coverage averages $3,254 a year in New Jersey, according to Bankrate data cited by New Jersey Monitor.
That same New Jersey Monitor investigation found state regulators have approved 69 double-digit rate increases since 2022.
4. Tolls. Turnpike and Parkway tolls go up 3% every January, automatically, under a plan the Turnpike Authority approved in 2020, according to New Jersey Monitor. This year's increase took effect Jan. 1.
5. Income tax. New Jersey's top rate is 10.75% on income over $1 million, according to the state Division of Taxation. The brackets reach into the middle class, too.
6. Childcare. Center-based infant care in New Jersey averages $20,213 a year, according to Child Care Aware of America. For some families, that's a second mortgage.
7. Electric bills. Heating season is here, and so are the bills. Electric bills jumped 17% to 20% in June 2025, according to the state Board of Public Utilities.
This year's increase was close to flat. But the board itself says bills "remain high." That's why it sent every household a one-time $25 credit in August.
8. Groceries. Nobody needs a chart for this one. The cart fills up and the total surprises you every time, especially near New York and Philadelphia.
9. Healthcare. Premiums, out-of-pocket costs and prescriptions all tend to run above the national baseline. It's the category most people forget to budget for until they need it.
10. All of it, at once. This is the one that breaks people. Each cost hurts on its own.
Together they don't take turns. Property taxes, rent or a mortgage, insurance, tolls, taxes, childcare and utilities all hit every month. And they all go up every year.
Why people stay anyway
This isn't a complaint. It's a ledger.
And every New Jersey resident reading this already knows every line on it by heart.
We pay it because this is home. But the numbers explain why so many of our neighbors are packing up. They also explain why the ones who stay aren't going quietly.
Opinions expressed in the post above are those of New Jersey 101.5 show host Eric Johnson only.
Average New Jersey property taxes in 2025
Gallery Credit: New Jersey 101.5
