Why You Won’t Be Able To Afford Retiring in These 5 Cities in New Jersey
Written by
Andrew Lisa
Edited by
Amber Barkley
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New Jersey is a challenging state to live in for anyone on a budget and certainly for retirees on a fixed income. According to Forbes, the Garden State has the highest property taxes in America, and it ranks near the top among the costliest states for mortgage payments, rental costs, food prices and general living expenses — and some cities are a whole lot more challenging than others.
A new GOBankingRates study used data from AreaVibes, the Federal Reserve, Zillow and the Bureau of Labor Statistics to identify the Garden State towns that are too expensive for typical retirees. If you’re planning on retiring in New Jersey, don’t expect your nest egg to last too long in these towns.
Saddle River
- Average home value: $2,168,208
- Monthly mortgage: $12,917
- Monthly expenditures: $2,201
- Total monthly cost: $15,118
Christie’s International Real Estate calls Saddle River “an affluent community in a country-like setting with large land lots and notable neighbors.” Located in Bergen County in the north of the state, Saddle River is a town of “historic homes, mansions and estates in the $1 million or more price range.”
Housing costs are an eye-popping 714% higher than the national average, bringing the overall cost of living to 219% above average.
Spring Lake
- Average home value: $1,718,608
- Monthly mortgage: $10,239
- Monthly expenditures: $1,955
- Total monthly cost: $12,193
According to VisitNJ.org, “Spring Lake is a small beach resort town where visitors can become immersed in serenity and sophistication.”
The town emerged as a summer getaway for barons of industry in the mid-19th century, and VisitNJ says it “has retained much of the exclusive aura of its Victorian heyday,” with historic inns, two miles of pristine beaches, a promenade and a coveted location just six miles away from the bustling and famous beach town of Asbury Park.
The tradeoff is a cost of living that’s 222% higher than the national average. Housing costs alone are 722% above average.
Hoboken
- Average home value: $1,629,751
- Monthly mortgage: $9,709
- Monthly expenditures: $2,199
- Total monthly cost: $11,908
If you’re thinking of retiring in the Big Apple’s unofficial sixth borough, do your thinking with your nest egg in mind. Its stunning views of the Hudson River’s New York City skyline, bustling arts, entertainment and music scenes, New York-style walkability and waterside restaurants offer many of the benefits of New York — but it also comes with New York-sized expenses.
The cost of living there is 92% above the national average, thanks mostly to housing, which is 263% above average.
Monmouth Beach
- Average home value: $1,623,660
- Monthly mortgage: $9,673
- Monthly expenditures: $1,983
- Total monthly cost: $11,656
According to Monmouth Beach Life, the New York Times in 1878 wrote, “Monmouth Beach is an aristocratic colony of aristocratic cottages inhabited by aristocratic people.”
Today, you still need an aristocratic nest egg to retire in this tiny Jersey Shore colony. The cost of living there is 97% above the national average. Goods and services cost 27% more than average. Groceries, transportation and health care cost 13%, 15% and 21% more than average, respectively. At 281% above the national average, however, housing is the big killer.
Englewood Cliffs
- Average home value: $1,536,495
- Monthly mortgage: $9,154
- Monthly expenditures: $2,196
- Total monthly cost: $11,350
According to Niche, “Englewood Cliffs offers residents a rural feel, and most residents own their homes.”
Those homes cost more than $1.5 million to buy, which helps to push the overall cost of living there to 43% above the national average.
If you have the cash, however, it’s a beautiful place to retire. Niche wrote, “In Englewood Cliffs, there are a lot of restaurants and parks. Many retirees live in Englewood Cliffs, and residents tend to have moderate political views. The public schools in Englewood Cliffs are highly rated.”
Methodology: GOBankingRates analyzed cities across the country to find replacement retirement cities for unaffordable cities. First, GOBankingRates gathered a few factors for each city, including: total population, as sourced from the U.S. Census American Community Survey; the cost of living indexes, as sourced from Sperling’s BestPlaces; the average expenditure costs for residents aged 65 and over, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey; the livability index, as sourced from AreaVibes; the average home value for single-family homes, as sourced from the Zillow Home Value Index; and, by assuming a 10% down payment and using the National Average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The total monthly cost of living can be calculated by using the average expenditure and the average mortgage costs. The most expensive city and the cheapest city were recorded for each city to showcase a cheaper location for residents aged 65 and over to live. All data was collected on and is up to date as of July 8, 2024.
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