Market Overview: New Jersey Housing Upper Mid-Range
New Jersey ranks as a upper-mid-range housing market, with a median home price of $570,000. The state's effective property tax rate of 1.88% is far above the national average of 0.90% (about 110% higher than the average state), and annual homeowners insurance averaging $1,417 falls below the US average of $1,492 (about 5% lower than the average state).
These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in New Jersey. Below we break down a realistic purchase scenario using state-specific data.
📊 How New Jersey Compares to the Other 50 States
Rank 1 is the cheapest. Every row below uses the same 20% down, 6.5% APR and 30-year term as the rest of this page.
| Measure | New Jersey | Rank | Lowest of the 51 |
|---|---|---|---|
| Median home price | $570,000 | #46 of 51 | West Virginia ($225,000) |
| Effective property tax rate | 1.88% | #50 of 51 | Hawaii (0.29%) |
| Average homeowners insurance | $1,417/yr | #26 of 51 | Oregon ($893/yr) |
| Est. monthly payment | $3,893/mo | #48 of 51 | West Virginia ($1,326/mo) |
The same $3,893/month would cover the median-priced home in 47 other states, including West Virginia ($1,326/month) and District of Columbia ($3,788/month).
Within the Northeast region, New Jersey has the #8 lowest median-price monthly payment of the 9 states there.
📍 New Jersey's Largest County: Bergen County
Everywhere else on this page New Jersey is one set of numbers — one median price, one tax rate, one insurance premium. The U.S. Census Bureau's American Community Survey publishes the same kind of measures for individual counties, so here is New Jersey's most populous county — Bergen County — from the 2020–2024 ACS 5-year estimates release.
| Bergen County — 2020–2024 ACS 5-year estimates | Estimate |
|---|---|
| Population | 962,316 |
| Median home value (owner-reported) | $623,000 |
| Median real estate taxes paid (annual) | $10,001 |
| Effective property tax rate (taxes ÷ value) | 1.61% |
| Median household income | $124,884 |
Two things to keep in mind before you use these numbers. First, the Census asks owners what their home is worth: this is a five-year survey estimate, not the sale price of homes that changed hands, so it is not comparable with the sale-price figures elsewhere on this page. Second, 1.61% is the median tax bill divided by the median home value, which is a different calculation from the statewide effective rate in the comparison table above (that one weighs total taxes collected against total value).
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates (B01003 population; B25077 median home value; B25103 median real estate taxes paid; B19013 median household income). Retrieved 2026-09-24. Learn how the American Community Survey collects these estimates.
🏡 Purchase Example: Buying a $570,000 Home in New Jersey
Using the state's median home price of $570,000, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in New Jersey:
| Cost Component | Amount |
|---|---|
| Home Price | $570,000 |
| Down Payment (20%) | $114,000 |
| Loan Amount | $456,000 |
| Estimated Closing Costs (3.5%) | $19,950 |
| Total Cash Needed at Closing | $133,950 |
Monthly Payment (20% Down)
| Item | Monthly |
|---|---|
| Principal & Interest | $2,882 |
| Property Taxes (1.88%) | $893 |
| Homeowners Insurance | $118 |
| PMI (not needed at 20% down) | $0 |
| Total Monthly Payment | $3,893 |
Annual income needed (28% DTI): $167,000/yr
PMI Scenario: What If You Put Only 10% Down?
With a 10% down payment ($57,000), you'd have a loan of $513,000 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.85% of the loan annually:
| Item | 10% Down | 20% Down (savings) |
|---|---|---|
| Principal & Interest | $3,243 | $2,882 |
| Monthly PMI | $363 | $0 |
| Total PITI+PMI | $4,617 | $3,893 |
The lower down payment costs you an extra $724/month (P&I + PMI). You would need $198,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.
First-year interest: In year one, $29,490 of your payments go to interest alone. Over the full 30-year term, you'll pay $581,603 in total interest.
💰 State-Specific Cost Notes for New Jersey
Property taxes in New Jersey are among the highest in the nation at 1.88%. On a $570,000 home, that's $10,716/year — significantly above the national norm. Buyers should factor this into their budget, as it adds roughly $893/month to the payment.Homeowners insurance in New Jersey averages $1,417/year ($118/month), about 5% below the national average of $1,492.
Closing costs in a upper-mid-range market like New Jersey typically run 2%–4% of the purchase price — roughly $19,950 on a $570,000 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.
Monthly Payment on a $570,000 Home in New Jersey
With a standard 20% down payment ($456,000 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $3,893.
Monthly Payment Breakdown (PITI)
| Component | Monthly Cost | Annual Cost |
|---|---|---|
| Principal & Interest | $2,882 | $34,584 |
| Property Taxes (1.88% est.) | $893 | $10,716 |
| Home Insurance | $118 | $1,416 |
| Total Monthly Payment | $3,893 | $46,716 |
Income Required in New Jersey
Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $167,000 to comfortably afford the median-priced home in New Jersey with 20% down at 6.5%.
How Interest Shapes Your Payments
In your first year, approximately $29,490 goes toward interest alone. Over the full 30-year term, you'll pay a total of $581,603 in interest.
Amortization Schedule — First 10 Years
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| Year 1 | $5,097 | $29,490 | $450,903 |
| Year 2 | $5,438 | $29,149 | $445,465 |
| Year 3 | $5,802 | $28,784 | $439,663 |
| Year 4 | $6,191 | $28,396 | $433,472 |
| Year 5 | $6,606 | $27,981 | $426,866 |
| Year 6 | $7,048 | $27,539 | $419,818 |
| Year 7 | $7,520 | $27,067 | $412,298 |
| Year 8 | $8,024 | $26,563 | $404,274 |
| Year 9 | $8,561 | $26,026 | $395,713 |
| Year 10 | $9,134 | $25,452 | $386,579 |
* Full 30-year amortization available in our interactive calculator.
❓ Frequently Asked Questions — Buying a Home in New Jersey
How much income do I need to buy a house in New Jersey?
With the median home price in New Jersey at $570,000 and a 20% down payment, you need roughly $167,000/year based on the 28% front-end DTI rule (total monthly housing costs of $3,893). If you put down 10%, the income requirement rises to about $198,000/year due to the higher loan amount and PMI.
What's the minimum down payment in New Jersey?
While 20% down ($114,000) avoids PMI, many New Jersey buyers opt for lower down payments. FHA loans require as little as 3.5% ($19,950), and conventional loans can go as low as 3%–5% ($17,100–$28,500). However, a 10% down payment ($57,000) would cost you $4,617/month — about $724 more than 20% down — due to PMI and a larger principal.
What are property taxes like in New Jersey?
New Jersey's effective property tax rate is 1.88%, which is far above the national average of 0.90% (about 110% higher than the average state). On a $570,000 home, you'd pay approximately $10,716/year in property taxes ($893/month). That is a significant ongoing cost worth weighing carefully against the rest of your monthly budget.
How much is homeowners insurance in New Jersey?
The average annual premium in New Jersey is $1,417, which is below the US average of $1,492 (about 5% lower than the average state). That is close to the middle of the pack, so insurance should not swing your budget much either way. This adds $118/month to your payment.
What are the total closing costs for a home in New Jersey?
On a $570,000 home in New Jersey, expect to pay about $19,950 in closing costs. Combined with a 20% down payment ($114,000), you'd need approximately $133,950 in cash at closing. First-time buyers in New Jersey may qualify for down payment assistance programs or reduced closing costs through local housing authorities — check NJHMFA for available grants and low-interest loan programs.
Compare New Jersey With Nearby States
Buyers relocating within the Northeast compare these markets most often. Every figure uses the same model as this page — each state's median home price, 20% down, 6.5% APR on a 30-year fixed loan, plus that state's property tax rate and average insurance premium — so the rows are directly comparable.
| State | Median Price | Est. Monthly PITI | Avg. Insurance |
|---|---|---|---|
| New Hampshire | $531,500 | $3,451/mo | $1,188/yr |
| New York | $530,000 | $3,390/mo | $1,628/yr |
| Rhode Island | $500,000 | $3,168/mo | $2,074/yr |
| Massachusetts | $650,000 | $3,984/mo | $1,871/yr |
| Connecticut | $452,000 | $3,017/mo | $1,814/yr |
| Maine | $400,000 | $2,439/mo | $1,077/yr |
| Vermont | $400,000 | $2,618/mo | $1,109/yr |
| Pennsylvania | $304,000 | $1,950/mo | $1,120/yr |
At $3,893/month for New Jersey's median home, New Jersey sits above the Northeast average of $3,002/month for the states listed here.
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Disclaimer: This is an estimate for informational purposes only. Actual mortgage payments depend on your credit score, exact interest rate, property taxes, insurance premiums, PMI, and other factors. Sources: Zillow Research, median sale price, all homes, July 2026 (home values); Tax Foundation 2024 (state effective property tax rates); NAIC 2022 (statewide average HO-3 homeowners insurance premiums). Consult a qualified mortgage professional for personalized advice. See our full Disclaimer.