F
91%
Overall NAT. AVG.
11%
Goods & Services NAT. AVG.
285%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Princeton New Jersey National
Cost of living191121100
Goods & Services111106100
Groceries103102100
Health care10299100
Housing385158100
Transportation105103100
Utilities108107100

An Overview of Cost of Living in Princeton, NJ

Getting a feel for the cost of living in Princeton is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Princeton is 191, which is 91% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you're in pursuit of an economical living environment, Princeton may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Princeton falls within this bracket.

Housing costs are a major factor in the Princeton cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 284.5% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Goods and services make up 33% of the total cost of living index score and are a large part of your everyday expenses. These items could include things like haircuts, salons, toothpaste, shampoo, clothes, movies, bowling, gym memberships or yoga. In Princeton, you can expect to pay 11.3% more than average for these items, making it a more expensive place to live.

Is Princeton Affordable?

Wondering if Princeton is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Princeton, for example, the median home price is 372.3% higher than what folks pay nationally, and monthly rent is 79.6% higher than the usual rates. Plus, income levels matter too, with Princeton boasting a median household income of $146,127, which is 164.1% higher than the national average.

What Factors can Influence the Cost of Living in Princeton?

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Princeton, the general sales tax rate starts at 6.625%, and income tax rates begin at 1.4%.

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Princeton, healthcare costs are 1.9% higher than the national average.

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Princeton, the groceries index is 2.5% higher than the national average.

Where is the Data From?

The cost of living data in Princeton displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Princeton is 58% higher than the New Jersey average
  • The cost of living in Princeton is 91% higher than the national average
  • Princeton housing is 285% higher than the national average
  • New Jersey general sales tax is 30% higher than the national average
  • New Jersey state income tax is 38% lower than the national average

Most Affordable Places to Live in and Around Princeton

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Compare Princeton, NJ Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$216,684$18,057$5,056$6,501
      Renters$72,727$6,061$1,697$2,182
      A good way to judge both the affordability of the housing and the cost of living in Princeton is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Princeton has a median income of about $216,684 for people who own homes. Based on that number, a maximum of $5,056 should be spent on expenses related to housing. Renters have a slightly different median income, which is $72,727. Based on this average, renters should spend no more than $1,697 on all rental costs if they want to maintain a non-impoverished standard of living.

      New Jersey Sales Tax

      State General Sales Tax With Max Surtax
      New Jersey 6.625% 12.625%

      New Jersey Income Tax

      State Income Tax (Low) Income Tax (High)
      New Jersey 1.4% 10.75%

      Goods & Services

      Item Princeton National avg. Difference
      Haircut $30.25$24.2624.7%
      Beauty Salon $53.00$45.5616.3%
      Toothpaste $3.75$3.701.3%
      Shampoo $1.53$1.2819.8%
      Movie $14.53$12.1319.7%
      Bowling $20.98$18.0016.6%

      Groceries

      Item Princeton National avg. Difference
      Ground Beef $6.13$5.845.0%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.70$4.670.5%
      Potatoes $5.32$4.937.8%
      Pizza $12.59$12.094.2%
      Beer $11.12$10.416.8%

      Health Care

      Item Princeton National avg. Difference
      Optometrist $129.93$125.683.4%
      Doctor $124.10$135.788.6%
      Dentist $129.94$113.2914.7%
      Ibuprofen $11.14$10.654.6%
      Lipitor $440.70$468.606.0%

      Housing

      Item Princeton National avg. Difference
      Home Price $872,400.00$184,700.00372.3%
      Avg. Mortgage Payment $2,956.12$2,346.6926.0%
      Apartment Rent $1,704.00$949.0079.6%

      Transportation

      Item Princeton National avg. Difference
      Gasoline $3.41$3.461.4%
      Tire Balancing $72.38$59.9220.8%

      Utilities

      Item Princeton National avg. Difference
      All Electricity $223.08$193.9915.0%
      Phone $186.61$192.252.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Zarephath, NJ941087.8%
      Newtown CDP, PA2508811.7%
      Trenton, NJ83,387973.2%
      Morrisville CDP, PA862945.8%
      Rossmoor, NJ2,7001022.1%
      Princeton, NJ31,16119190.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Needham, MA31,177201101.0%
      Michigan City, IN31,1918217.9%
      Naugatuck, CT31,2011088.4%
      Centereach, NY31,10013938.6%
      Sherwood, AR31,225964.3%
      Princeton, NJ31,16119190.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.