New Jersey Housing Costs for Mortgaged Homeowners—3rd Highest in the Country
By: Ramu Garuda May. 24, 2018
A recent study conducted by Gavop using data from the U.S. Census Bureau analyzed the expenses of homeowners with mortgages in the state of New Jersey, at both the state and county level.
The cost of homeownership is the income allocated to expenses including mortgage payments, real estate taxes, home insurance, and utilities.
Overall, the data shows that homeowners with mortgages in New Jersey pay a statewide median of 36.9 percent of their income toward housing costs, which is higher than the national Median of 30.9 percent.
In other words, New Jersey's annual housing cost of $28,116 is $10,284 more than the national value of $17,832. This makes New Jersey the third highest ranking state, after New York and California, in terms of percentage of income spent on housing.
The table below shows a comparison of housing costs at the state and national levels.
| Location | Housing Cost for Homeowners with a Mortgage as a % of Income | Annual Housing Costs for Homeowners with a Mortgage | Median Income | Median Home Value |
|---|---|---|---|---|
| New Jersey | 36.9% | $28,116 | $76,126 | $328,200 |
| United States | 30.9% | $17,832 | $57,617 | $205,000 |
The county-level figures show that the residents of Essex County incur the highest median cost in the state, with homeowners spending 59.9%—well over half of their income—on housing. In second place is Hudson County at 50.5 percent, followed by Passaic County at 47.7 percent, Union County at 42.1 percent, and, lastly, Atlantic County at 40.2 percent.
Counties Ranking Highest Housing Costs as a Percentage of Income
| Rank by Homeowners Cost as a % of Income (Highest to Lowest) | County | Housing Costs for Homeowners with a Mortgage as a % of Income | Annual Housing Costs for Homeowners with a Mortgage | Median Income | Median Home Value | Number of Housing Units |
|---|---|---|---|---|---|---|
| 1 | Essex | 59.9% | $32,532 | $54,277 | $373,000 | 315,479 |
| 2 | Hudson | 50.5% | $32,244 | $63,808 | $370,200 | 279,664 |
| 3 | Passaic | 47.7% | $29,604 | $62,016 | $339,900 | 177,006 |
| 4 | Union | 42.1% | $30,300 | $72,028 | $357,800 | 201,961 |
| 5 | Atlantic | 40.2% | $22,848 | $56,778 | $215,100 | 128,013 |
In contrast, Hunterdon County spends the lowest percentage of its income on homeownership—just 27.5 percent. Coming up next is Sussex County that spends 28.6 percent, followed by Burlington County at 29.7 percent, Gloucester County at 30.2 percent, and, at the bottom of the list, Somerset County that spends 30.4 percent.
Counties Ranking Lowest in terms of Housing Costs as a Percentage of Income
| Rank by Homeowners as a % of Income (Lowest to Highest) | County | Housing Costs for Homeowners with a Mortgage as a % of Income | Annual Housing Costs for Homeowners with a Mortgage | Median Income | Median Home Value | Number of Housing Units |
|---|---|---|---|---|---|---|
| 1 | Hunterdon | 27.5% | $31,212 | $113,684 | $409,100 | 50,132 |
| 2 | Sussex | 28.6% | $25,116 | $87,829 | $265,500 | 62,364 |
| 3 | Burlington | 29.7% | $23,856 | $80,254 | $248,600 | 179,013 |
| 4 | Gloucester | 30.2% | $24,108 | $79,879 | $218,600 | 113,020 |
| 5 | Somerset | 30.4% | $31,812 | $104,478 | $422,800 | 126,301 |
The table below is a ready reckoner of the Median housing costs in all of New Jersey’s counties. The list is arranged from highest to lowest in terms of cost of housing as a percentage of income.
Housing Costs as a Percentage of Income in New Jersey Counties [Highest to Lowest]
| Counties | Median Mortgage Cost as a % of Homeowners' Income | Median Mortgage Cost Per Year | Median Income | Median Home Value | Total Number of Housing Units |
|---|---|---|---|---|---|
| Essex County, New Jersey | 59.9% | $32,532 | $54,277 | $373,000 | 315,479 |
| Hudson County, New Jersey | 50.5% | $32,244 | $63,808 | $370,200 | 279,664 |
| Passaic County, New Jersey | 47.7% | $29,604 | $62,016 | $339,900 | 177,006 |
| Union County, New Jersey | 42.1% | $30,300 | $72,028 | $357,800 | 201,961 |
| Atlantic County, New Jersey | 40.2% | $22,884 | $56,778 | $215,100 | 128,013 |
| Cumberland County, New Jersey | 38.0% | $18,672 | $49,110 | $165,900 | 56,426 |
| Bergen County, New Jersey | 37.1% | $34,740 | $93,683 | $462,800 | 356,518 |
| Ocean County, New Jersey | 36.8% | $22,884 | $62,222 | $272,900 | 282,205 |
| Salem County, New Jersey | 36.0% | $19,344 | $53,662 | $183,400 | 27,613 |
| Monmouth County, New Jersey | 34.7% | $31,296 | $90,226 | $411,300 | 261,053 |
| Middlesex County, New Jersey | 34.1% | $28,068 | $82,375 | $333,200 | 300,611 |
| Mercer County, New Jersey | 33.8% | $26,280 | $77,650 | $284,600 | 144,734 |
| Camden County, New Jersey | 33.7% | $22,392 | $66,362 | $197,400 | 205,832 |
| Cape May County, New Jersey | 33.6% | $21,024 | $62,548 | $290,900 | 99,233 |
| Warren County, New Jersey | 32.4% | $24,276 | $74,867 | $252,200 | 45,445 |
| Morris County, New Jersey | 31.1% | $33,288 | $106,985 | $443,100 | 192,065 |
| Somerset County, New Jersey | 30.4% | $31,812 | $104,478 | $422,800 | 126,301 |
| Gloucester County, New Jersey | 30.2% | $24,108 | $79,879 | $218,600 | 113,020 |
| Burlington County, New Jersey | 29.7% | $23,856 | $80,254 | $248,600 | 179,013 |
| Sussex County, New Jersey | 28.6% | $25,116 | $87,829 | $265,500 | 62,364 |
| Hunterdon County, New Jersey | 27.5% | $31,212 | $113,684 | $409,100 | 50,132 |
ABOUT THE AUTHOR
Ramu Garuda
Ramu is a research analyst with over 9 years of analytics & research experience. Prior to joining the company, he worked with some of the prominent consulting and market research firms in India, including Pride Technology (Supporting consulting projects to PWC), RR Donnelly, and The Hackett Group. His skills include company profiling, benchmarking, data and trend analysis, industry analysis, and report writing across the industries. Ramu holds a Master’s degree in Finance and Marketing. He also has a bachelor’s degree in Biotechnology.
