New Jersey Ranks 3rd Most Expensive in U.S. for Household Costs
This article was originally published by PhillyBite
NEW JERSEY – Residents of the Garden State are likely familiar with the high cost of living, and a new report confirms this reality, placing New Jersey as the third most expensive state in the nation for household bills. The 2025 Cost of Bills Index (COBI) Report by doxoINSIGHTS reveals that New Jersey households pay significantly more than the national average for every day recurring expenses.
The Cost of Bills Index (COBI) is designed to illustrate the cost of living in one area compared to another, with a specific focus on the most common household bills. The index is based on Doxo’s extensive, anonymized bill payment data from over 10 million consumers across 97% of U.S. zip codes, covering 45 different service categories and more than 120,000 unique billers. For the COBI, a score of 100 represents the national average.
New Jersey by the Numbers:
According to the 2025 report, New Jersey’s financial landscape for household expenses is striking:
- Standard COBI Score: New Jersey has a Standard COBI score of 127.
- Above National Average: This score means that the cost of household bills in New Jersey is 27% higher than the national median.
- Monthly Spend: The total median spend per month on the thirteen most common household bills for New Jersey residents is $2,621.
The thirteen essential household bills factored into the COBI include Mortgage, Rent, Auto Loan, Gas, Electric, Waste & Recycling, Water & Sewer, Cable & Phone, Mobile Phone, Auto Insurance, Life Insurance, Health Insurance, and Alarm & Security.
The National Context: Where New Jersey Stands
New Jersey’s 3rd place ranking puts it among the nation’s most expensive states for household bills:
- California: Standard COBI of 139 (39% above national median)
- Hawaii: Standard COBI of 132 (32% above national median)
- New Jersey: Standard COBI of 127 (27% above national median)
- Massachusetts: Standard COBI of 127 (27% above national median)
- Maryland: Standard COBI of 122 (22% above national median)
An Income-Adjusted Perspective:
While the absolute cost of bills is high, the doxo report also offers an Income-Adjusted COBI. This metric considers household bills as a percentage of the local median income in a given area. For New Jersey, the Income-Adjusted COBI is 99. This indicates that when the state’s higher median income ($108,982, as per the report) is factored in, the actual percentage of income spent on household bills by New Jerseyans is slightly below the national average.
The 2025 doxoINSIGHTS Cost of Bills Index highlights New Jersey’s position as one of the most expensive states in the U.S., based on the substantial dollar amount spent on everyday household bills. While the state’s higher median income helps to balance the burden relative to earnings, the absolute costs remain significantly above the national average. This data provides valuable context for residents and those considering a move to the Garden State, highlighting the financial realities of living in one of America’s priciest regions.