“There are more renters than ever before in New Jersey, as home ownership has declined. But renting in the Garden State, where rents are among the most expensive in the nation, is no bargain either.”
NJ Advance Media analyzed U.S. Census data to determine in which New Jersey towns renters spend the largest percentage of their household income on rent, or where the rent burden is highest.
“In New Jersey, residents spend a median of 31.8 percent of their household income on rent, the seventh highest in the nation.”
Renters who pay more than 30% of their household income on rent are considered “overburdened” with un-affordable rent. The idea behind this is that household need the other 70% to pay for other necessities and expenses including food, healthcare, utilities transportation, childcare, etc.
NJ Advance Media cautions that in looking at the 25 identified towns “It’s important to remember that this is not necessarily (a) ranking of where rents are more expensive in New Jersey. Places where renters earn high incomes would probably not be included, regardless of rent prices in the area. That’s why Jersey City, which has one of the most expensive rental prices in the country, did not make our list since residents pay only 28.7 percent of their household income on rent.”
The list of 25 towns is made up of towns where the rent is high and renter households do not make enough income to have more than 65% of their income left over to pay for necessities and other important expenses.
The top five towns in New Jersey where renters spend the highest percentage of their income on rent are:
Lakewood in Ocean County where 12,241 renter households spend 43.3% of their income on rent
Roselle in Union County where 3,881 renter households spend 41.6% of their income on rent
New Brunswick in Middlesex County where 11,624 renter households spend 40.4% of their income on rent
Passaic in Passaic County where 14,843 renter households spend 40% of their income on rent
Paterson in Passaic County where 32,284 renter households spend 39.5% of their income on rent