| Index | Paterson | New Jersey | National |
| Cost of living | 122 | 125 | 100 |
| Groceries | 110 | 108 | 100 |
| Health care | 112 | 112 | 100 |
| Housing | 138 | 157 | 100 |
| Transportation | 120 | 114 | 100 |
| Utilities | 112 | 111 | 100 |
| Lifestyle & Entertainment | 112 | 113 | 100 |
| Household Items | 110 | 107 | 100 |
| Education & Childcare | 128 | 120 | 100 |
Getting a feel for the cost of living in Paterson 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 Paterson is 122, which is 22% 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 affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Paterson is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Paterson falls into this category, which may not align with your goal of finding a budget-friendly living environment.
Housing costs are a very significant part of the Paterson cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 37.9% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
Groceries are getting more expensive by the day and the cost of groceries makes up 13% of the overall cost of living index. In the past two years, prices have shot up by over 10%! Unfortunately, in Paterson, it's the same story – grocery costs are 10.3% higher than what people pay across the country.
Locals have the inside scoop on their city. So, we polled 6 residents in Paterson to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 17% find it reasonable with decreasing prices, but 83% think it's quite pricey, with prices that continue to rise.
Is Paterson an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Paterson, the median home price is 43.1% higher than what most folks pay across the country, and monthly rent prices are 25.8% higher than the usual rates. Income levels in Paterson come in at $66,412, which is 18.3% lower than the national average.
Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Paterson, the utilities index registers 11.8% higher than the national average.
Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Paterson, healthcare costs are 11.9% higher than the national average.
Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.
The Paterson cost of living data above is designed around a U.S. average baseline of 100, allowing for easy comparisons of relative living costs. Housing incorporates U.S. Census home price and rental data, while all other figures are AI-assisted estimates that account for regional price trends, climate, transportation dynamics, and common everyday expenses. These values are best used as directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $112,782 | $9,399 | $2,631 | $3,384 |
| Renters | $56,052 | $4,671 | $1,308 | $1,682 |
| State | General Sales Tax | With Max Surtax |
| New Jersey | 6.625% | 12.625% |
| State | Income Tax (Low) | Income Tax (High) |
| New Jersey | 1.4% | 10.75% |
| City | Population | Cost of Living Index | National Avg. |
| East Orange, NJ | 66,655 | 115 | 15.1% |
| Silver Lake CDP (Warren County), NJ | 326 | 117 | 17.3% |
| Newark, NJ | 290,764 | 120 | 19.8% |
| Prospect Park, NJ | 5,987 | 125 | 25.1% |
| Haledon, NJ | 8,475 | 126 | 26.2% |
| Paterson, NJ | 149,118 | 122 | 21.5% |
| City | Population | Cost of Living Index | National Avg. |
| Savannah, GA | 148,994 | 99 | 1.2% |
| Lévis, QC | 149,331 | n/a | |
| Bridgeport, CT | 149,398 | 109 | 8.6% |
| Torrance, CA | 150,066 | 195 | 94.6% |
| Mesquite, TX | 148,020 | 98 | 1.8% |
| Paterson, NJ | 149,118 | 122 | 21.5% |
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