I did the math—No wonder so many are fleeing New Jersey

🚨 New Jersey families are shelling out nearly $72,000 a year before buying groceries or saving for retirement
💸 Skyrocketing auto insurance premiums are adding to an affordability crisis crushing middle-class NJ residents
🏃 More families are questioning whether they can afford to stay in the Garden State long-term

This week on ‘Jersey Thing’, I talked about a new analysis by the New Jersey Monitor that shows New Jersey is now the only state in the nation experiencing a double-digit increase in auto insurance premiums. For many drivers, coverage now costs $300 or more per month.

Families are already struggling under the crushing weight of New Jersey’s cost of living, and this is just one more bill pushing household budgets to the breaking point.

But how bad is it, really?

Really bad.

Using various data points, I wanted to come up with a typical household budget. I used the median costs of basic necessities. When I started adding up the numbers, I couldn’t believe what I was seeing.

New Jersey affordability crisis keeps getting worse

The affordability crisis in New Jersey is no longer just about property taxes. It’s about the combined cost of simply trying to live a middle-class life in the Garden State.

When you add up the average monthly expenses for a typical New Jersey family, the numbers are staggering.

Typical monthly expenses for a New Jersey family

That works out to $71,952 per year.

And what makes those numbers even more alarming is what they do not include. There is no money factored in for groceries, clothing, school supplies, childcare, entertainment, vacations, emergency savings, or retirement planning.

Why NJ families are living paycheck to paycheck

New Jersey’s median household income is about $104,294. On paper, that sounds impressive. The state consistently ranks among the highest in the nation for household income.

But income alone doesn’t tell the story.

Once nearly $72,000 disappears into basic monthly expenses, many families are left scrambling to cover everything else. Add in food costs, student loans, credit card debt, medical bills, or childcare expenses, and it becomes easier to understand why so many residents say they are living paycheck to paycheck — or worse.

New Jersey also ranks near the bottom nationally in disposable income, meaning residents often have less money left over after paying bills than families in states with far lower incomes.

It just doesn’t add up

The sharp increase in auto insurance premiums is just another major pressure point. Families already paying among the nation’s highest property taxes and utility bills are now being hit with rapidly rising insurance costs as well.

For many New Jersey residents, the math simply no longer works.

That helps explain why surveys consistently show large numbers of residents — especially younger families and retirees — are considering leaving the state for places with lower taxes, cheaper housing, and a lower overall cost of living.

New Jersey remains a great place to live for many families. But for an increasing number of residents, staying here is becoming less about desire and more about whether they can still afford it.

For a growing number of families, the answer is no.

Report a correction 👈 | 👉 Contact our newsroom