The 'real' cost of living in Jersey

[Renew Deal]

Group's report challenges the U.S. definition of poor in the Garden State

Wednesday, June 15, 2005
BY TOM HESTER AND SUSAN K. LIVIO
Star-Ledger Staff

To live above poverty in Essex County, a family of four -- two working parents with two children -- must earn a minimum of $44,736 annually, without government or private support, according to an in-depth cost-of-living report released yesterday.

That means each parent must make at least $10.59 an hour or $3,728 monthly to cover such costs as $1,021 for child care and $944 for housing.

The figures are no brighter across the state. In Hunterdon County, the minimum annual salary necessary for a family of four to avoid poverty is $61,464. In Middlesex County, the amount is $50,100. In Morris County it is $48,360, Somerset County $62,474, Sussex County $53,856, Union County $45,492 and Warren County $51,024.

"The Real Cost of Living in 2005: the Self-Sufficiency Standard in New Jersey," compiled by Social Work professor Diana Pearce of the University of Washington and released by Legal Services of New Jersey, challenges the credibility of federal poverty guidelines, which say the poverty for a family of four with two working parents is $19,350.
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http://www.nj.com/printer/printer.ssf?/base/news-0/1118813601126730.xml&coll=1

[jojo54]

1. Huh.........

$19,350 a year or less in Camden county, huh? That's a pretty fair estimate. It's still a lot of money but a fair estimate just the same.

[readmylips]

2. What is going on in Jersey?

We lived in NJ for 6 years. Some of the areas where we searched to buy a house, the property tax was 14K a year and it wasn't even beach front property nor a new house. We finally bought a house across from Phili, near Betsy Ross bridge, our yearly property tax was 6K. Our property tax in AZ is 1,200K.

[mcscajun]

3. The pressure is on in NJ since 9/11

More and more folks who wanted to move out of NYC came here.

Not to mention the usual influx. Real Estate prices have doubled and in some cases/places more than doubled in the past 5 years.

[NJ Democrats]

4. Yeah i saw that

We are just above...

[SemperEadem]

5. I just read last week

that Bergen-Passaic county and Middlesex, NJ are in the top 5 most expensive places to live in the country. Seattle is #1. LA is #10.

[boredofeducation]

6. Not expensive, overpriced

Not expensive, overpriced, their is a difference. Seattle is not expensive, just over priced, I believe they figured the average salaries, what it costs to own or rent, taxes, insurance and stuff. That is how they came up with that list.

[Kire]

7. It costs a lot to live there, too.

:+

[BlueStateBlue]

8. I agree, overpriced.

Obnoxious, isn't it?

[flashg]

9. Forbes opinion list just based on their own previous findings

The PMI Risk Index states otherwise: http://money.cnn.com/2005/08/03/real_estate/buying_selling/pmi_riskiest-markets/index.htm?cnn=yes

[I_Make_Mistakes]

10. My SJ area just went through a ridiculous inflation of housing costs.

My 2 bedroom condo (in 3 years) went from high 80's-low 90's to 160,000. It is spacious, but come on!

[Berzerkley]

11. Housing prices

This week’s New York Times Magazine had an interesting article about housing in America….

In it, a land developer says that in the future, kids will be living with their parents until they are 40 years old, will be spending seven times their annual income when paying for a house, and that the house they will buy will only be as half as big as the typical house today. He cites Europe as an example to what is to be expected in America.

The article talks a lot about New Jersey in particular, because apparently we are in ground zero when it comes to housing costs. It mentions the fact that New Jersey is the most densely populated state in the country and more densely populated than India and Japan and that it will probably be the first state to reach a “fully built-out” stage, in which all developable land in the state will be used. And when that happens... we will be screwed big time.

I don’t know whether to believe that there is no hope to housing costs in America and particularly here in our state. Definitely the greedy land developers would like us to think so. New Jersey is growing in population, but not nearly the rate that many states in the South and West are. I’d like to think that we are reaching maturity and that things will stabilize here, but who knows?