Cost of Living in New Jersey: How does it compare to NY and PA?

Between the increasing cost of living and inflation, many households across America are adopting budget-friendly and frugal lifestyles.

And some families are on the verge of relocating to economical states, according to GoBankingRates.com.

In the report, Here's the Cost of Living in Every State , the personal finance website determined the cost of living index per state from data cost associated with six categories like housing, utilities and groceries, from two sources: the Missouri Economic Research and Information Center’s 2023 annual cost of living indexes and the Bureau of Labor Statistics 2023 Consumer Expenditure Survey.

Hawaii is the most expensive state to live in with more than $130,000 in annual expenditures, while Oklahoma is the least expensive state to live in with close to $63,000 in annual expenditures.

New Jersey ranks in the top 25 most expensive states at No. 11, with neighboring states like New York at No. 4, Connecticut at No.12, Delaware at No. 20 and Pennsylvania at No. 24.

Here are the results:

New York

• Total annual expenditures: $91,865
• In 2017, it cost more to live in New York than any other state in the contiguous U.S., not counting Washington, D.C. In 2024, however, New York has dropped to the fourth most expensive state. Most of the reason for the shift is due to housing, which costs 76% more than the national average.

New Jersey

• Total annual expenditures: $83,109
• The biggest reason why the cost of living in the Garden State is 13.9% higher than the national average is housing, which costs 35.8% more than in the country as a whole. In fact, everything is more expensive in New Jersey, except healthcare, which is less than a percentage point lower.

Connecticut

• Total annual expenditures: $82,307
• Connecticut has dropped from the seventh most expensive state to 12th. In all, the cost of living is 12.8% higher there than in the rest of the country. Life is costlier than average across all categories — none more so than utilities, which comes in at 30.4% above the national mean, and housing, which is 22.6% higher.

Delaware

• Total annual expenditures: $73,770
• Delaware residents can expect to pay 1.1% more to live in the First State. Groceries are 2% more expensive and miscellaneous expenses are 4.5% pricier. However, housing is 3% cheaper than the rest of the U.S.

Pennsylvania

• Total annual expenditures: $69,756
• It’s 4.4% less expensive to live in Pennsylvania than in the country as a whole. Costs vary wildly, with housing costs at 18.1% lower than the national average, but utilities are 7.3% higher.

This article originally appeared on Asbury Park Press: Cost of Living in New Jersey: How does it compare to NY and PA?