Buying a home in New Jersey is manageable for many families, though it takes real commitment. The typical home costs $454,400, which is about 4.4× of the typical household income of $103,556 a year. A family saving their entire income would need around 4.4 years to cover the purchase price — before mortgage interest, taxes, or upkeep.
Renters face serious pressure. The typical rent in New Jersey is $1,720 a month, and 49% of renters spend more than 30% of their income on housing — the point at which most financial advisers say rent becomes unaffordable. That figure is 9% higher than the national average of 45%.
20.5% of New Jersey homeowners with a mortgage spend more than 30% of their income on housing — well above the national average of 16.1%.