Cost of Living in Ridgewood, NJ
Ridgewood cost of living index: 166.2 (above the US average). Median home price: $1,949,000.
Updated 2026 • Based on 1 local zip code
📍 Some data sourced from nearby metro area
66% above the national average
Housing
Data from 1 zip code
Housing costs in Ridgewood, NJ based on real market data from 1 local zip code.
When considering a move to Ridgewood, NJ, the housing market looks quite competitive with a housing index of 168.2. The median home price stands at 1949000.0, suggesting that purchasing may be significant, particularly for first-time buyers. Renting options show a 2-bedroom apartment averaging 3125.0 and a 2-bedroom house at . It’s essential to balance these costs with local employment opportunities and quality of life when weighing your options. The decision will increasingly hinge on whether ownership or renting aligns better with your financial goals and lifestyle preferences.
Last updated: January 2026
Utilities
The cost of utilities such as electricity, natural gas, and other services can significantly impact the overall cost of living.
Living in Ridgewood, NJ could entail variable utility costs. Electricity costs sit at $19.88, while natural gas is priced at $14.01 per Thousand Cubic Feet. Expect to budget about $121.3 monthly for other services like water and garbage.
Cost Breakdown by Category
Local Income & Economy in Ridgewood, NJ
How far does your money go in Ridgewood? Understanding the relationship between income and cost of living is key to evaluating affordability.
How We Calculate Adjusted Purchasing Power in Ridgewood
The adjusted purchasing power shows what a Ridgewood, NJ household income is actually worth after accounting for local prices. We calculate it using the formula: Purchasing Power = Median Income ÷ Cost of Living Index × 100
For Ridgewood, that's $211,224 ÷ 166.2 × 100 = $127,090. This means a household earning the median income in Ridgewood has the equivalent buying power of $127,090 in a city where the cost of living index equals the national baseline of 100.
With a cost of living index of 166.2, Ridgewood is significantly more expensive than the national average. Despite a median income of $211,224, the high cost of housing, groceries, and everyday expenses reduces real purchasing power to $127,090. If you're planning to move to Ridgewood, budgeting carefully for rent and housing costs is essential. Households relocating from lower-cost areas should expect to spend more on basic necessities.
With a median home price of $1,949,000, housing affordability in Ridgewood is a significant factor. Prospective homebuyers should consider that mortgage payments, property taxes, and insurance in Ridgewood, NJ will consume a larger share of household income compared to cities with a lower cost of living index.
💡 Purchasing power is calculated by dividing the local median household income by the cost of living index and multiplying by 100. A result higher than the nominal income means your money goes further; a lower result means local prices erode your earnings. The US baseline cost of living index is 100.
Pros & Cons of Living in Ridgewood
Pros
- • Family-friendly events
- • Great schools available
- • Rich cultural activities
- • Vibrant nightlife
- • Diverse community
- • Good public transport access
- • Friendly neighborhoods
- • Abundant parks nearby
- • Low crime rate
- • Strong job market
Cons
- • Limited shopping variety
- • Traffic congestion issues
- • Limited nightlife options
- • High property taxes
- • Political polarization present
- • Long commutes to NYC
- • Fewer kids activities
- • Racial diversity challenges
- • High cost of living
- • Lack of affordable housing
💡City Insights
Ridgewood scores 4/10 for affordability, 5/10 for safety, and 5/10 for family-friendliness — an average overall profile. However, affordability is a weaker area that prospective residents should consider carefully.
Frequently Asked Questions
What is the cost of living in Ridgewood, NJ? ▼
The cost of living in Ridgewood, NJ is 66% higher than the national average, with a cost of living index of 166 (where 100 represents the U.S. average). Housing typically accounts for the largest portion of living expenses. See full cost of living breakdown →
How much does it cost to buy or rent a home in Ridgewood, NJ? ▼
In Ridgewood, NJ, The median home price is $1,949,000. requiring approximately $460,500 annual income to afford. Average rent is $3,125/month (requiring ~$125,000/year income). The local median household income is $211,224, making homeownership challenging for typical residents. Explore Ridgewood real estate data →
Is Ridgewood, NJ a safe place to live? ▼
Ridgewood, NJ is average in terms of safety, with crime rates near the national average. Safety varies significantly by neighborhood. View detailed Ridgewood crime statistics →
What salary do you need to live comfortably in Ridgewood, NJ? ▼
To live comfortably in Ridgewood, NJ and afford a median-priced home of $1,949,000, you would typically need a household income of $487,250 to $609,062 per year. The local median household income is $211,224. Renting requires approximately $125,000/year (at $3,125/month). See full affordability analysis →
What are the best neighborhoods in Ridgewood, NJ? ▼
The best neighborhoods in Ridgewood, NJ depend on your priorities. For families, look for areas near top-rated schools with lower crime rates. For affordability, neighborhoods farther from the city center tend to offer more affordable options.
How are the taxes in Ridgewood, NJ? ▼
Tax rates in Ridgewood, NJ include state and local components. The cost of living index of 166 indicates a higher cost environment compared to the national average. View detailed Ridgewood tax information →
How does Ridgewood, NJ compare to nearby cities? ▼
Ridgewood, NJ offers comparable costs to nearby communities. With a cost of living index of 166, median home prices of $1,949,000, and a crime rate of 0 per 1,000 residents, you can compare these metrics side-by-side. Use the compare feature to evaluate specific cities.
What is the weather like in Ridgewood, NJ? ▼
Weather in Ridgewood, NJ varies by season. Climate data varies by season. View detailed Ridgewood climate & environment data →
What factors affect cost of living in Ridgewood, NJ? ▼
The main factors affecting cost of living in Ridgewood, NJ include housing costs (the biggest factor), utilities, groceries, transportation, and healthcare. Local taxes and the overall economic conditions also play a role.
Housing Costs by Zip Code
Detailed housing data across 1 zip code in Ridgewood, NJ.
| Zip Code | Median Home Price | Avg Rent | 2BR Rent | For Sale | For Rent |
|---|---|---|---|---|---|
| 07450 | $1,949,000 | $3,288/mo | $3,125/mo | 15 | 27 |
Explore More About Ridgewood, NJ
📅 Last Updated: January 2026
Sources: U.S. Census Bureau (ACS), Bureau of Labor Statistics, Council for Community and Economic Research (C2ER), Zillow, Redfin