Cost of Living in Highland Park, NJ

Homes For Sale In Highland Park, NJ

An Overview of Cost of Living in Highland Park, NJ

Understanding the cost of living in Highland Park can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Highland Park cost of living index is 128, which is 28% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you value affordability in your search for a new place to live, Highland Park may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Highland Park falls into this category, which may not align with your desire for an affordable place to call home.

When it comes to the cost of living in Highland Park, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 82.8% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Is Highland Park Affordable?

Is Highland Park affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Highland Park, the median home price is 96.6% higher than the national average and monthly rent prices are 50.5% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Highland Park boasting a median household income of $124,268, 52.8% higher than the national average.

What Factors can Influence the Cost of Living in Highland Park?

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Highland Park, the housing index is 82.8% higher than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Highland Park, the standard sales tax rate starts at 6.625%, and the income tax rates commence at 1.4%.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Highland Park, the utilities index registers at 3.1% higher than the national average.

Where is the Data From?

The cost of living data in Highland Park 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.

Most Affordable Places to Live in and Around Highland Park

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Median Income & Debt-To-Income Ratio

A good way to judge both the affordability of the housing and the cost of living in Highland Park 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. Highland Park has a median income of about $197,138 for people who own homes. Based on that number, a maximum of $4,600 should be spent on expenses related to housing. Renters have a slightly different median income, which is $92,235. Based on this average, renters should spend no more than $2,152 on all rental costs if they want to maintain a non-impoverished standard of living.

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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.

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Date & Last Updated: This data reflects 2025 and was released from C2ER in January, 2026; this is the most current data available.