F
79%
Overall NAT. AVG.
7%
Goods & Services NAT. AVG.
247%
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 Ridgewood New Jersey National
Cost of living179121100
Goods & Services107106100
Groceries102102100
Health care9699100
Housing347158100
Transportation108103100
Utilities111107100

An Overview of Cost of Living in Ridgewood, NJ

The cost of living in Ridgewood affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Ridgewood is 179, which is 79% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

The cost of living in Ridgewood is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Ridgewood falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a very significant part of the Ridgewood 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 247.2% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Is Ridgewood Affordable?

Is Ridgewood an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Ridgewood is 302.9% higher than the national average, while the average monthly rent prices are 117.3% higher than average. The affordability of any location can also be influenced by median income levels. Ridgewood has a median household income of $178,958, which is 223.5% higher than the national average.

What Factors can Influence the Cost of Living in Ridgewood?

Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Ridgewood, the groceries index registers 2.1% 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 Ridgewood, healthcare costs are 4.1% lower than the national average.

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Where is the Data From?

The cost of living data in Ridgewood 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 Ridgewood is 48% higher than the New Jersey average
  • The cost of living in Ridgewood is 79% higher than the national average
  • Ridgewood housing is 247% 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 Ridgewood

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Compare Ridgewood, 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$213,564$17,797$4,983$6,408
      Renters$95,404$7,950$2,226$2,862
      A good way to judge both the affordability of the housing and the cost of living in Ridgewood 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. Ridgewood has a median income of about $213,564 for people who own homes. Based on that number, a maximum of $4,983 should be spent on expenses related to housing. Renters have a slightly different median income, which is $95,404. Based on this average, renters should spend no more than $2,226 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 Ridgewood National avg. Difference
      Haircut $25.62$24.265.6%
      Beauty Salon $41.67$45.568.6%
      Toothpaste $3.72$3.700.4%
      Shampoo $1.48$1.2815.6%
      Movie $15.78$12.1330.1%
      Bowling $21.00$18.0016.7%

      Groceries

      Item Ridgewood National avg. Difference
      Ground Beef $5.65$5.843.3%
      Fried Chicken $1.39$1.5711.4%
      Milk $4.71$4.670.7%
      Potatoes $5.37$4.938.8%
      Pizza $11.49$12.094.9%
      Beer $11.33$10.418.8%

      Health Care

      Item Ridgewood National avg. Difference
      Optometrist $157.11$125.6825.0%
      Doctor $115.59$135.7814.9%
      Dentist $124.27$113.299.7%
      Ibuprofen $11.15$10.654.6%
      Lipitor $451.73$468.603.6%

      Housing

      Item Ridgewood National avg. Difference
      Home Price $744,200.00$184,700.00302.9%
      Avg. Mortgage Payment $3,568.94$2,346.6952.1%
      Apartment Rent $2,062.00$949.00117.3%

      Transportation

      Item Ridgewood National avg. Difference
      Gasoline $3.41$3.461.4%
      Tire Balancing $82.67$59.9238.0%

      Utilities

      Item Ridgewood National avg. Difference
      All Electricity $236.04$193.9921.7%
      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.
      East Orange, NJ64,65011111.1%
      Silver Lake CDP (Warren County), NJ32011313.2%
      Paterson, NJ145,48411515.3%
      Mount Ivy, NY7,39012221.6%
      Haverstraw, NY12,07612322.7%
      Ridgewood, NJ25,11017978.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Balch Springs, TX25,123963.7%
      South Salt Lake, UT25,1251109.6%
      Riverside, OH25,1278910.9%
      Bloomingdale, FL25,13211413.6%
      Muskego, WI25,07711716.7%
      Ridgewood, NJ25,11017978.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.