Side-by-side comparison of home prices, mortgage payments, and housing costs between Jersey City and Newark, New Jersey. Using New Jersey's 2.47% property tax rate and $1,500/year insurance. Updated for 2026.
Newark is significantly more affordable than Jersey City, with homes priced 33% lower on average. That translates to $1,543/month in savings on your total housing payment. For budget-conscious buyers in New Jersey, Newark offers a much more accessible path to homeownership.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses New Jersey's 2.47% property tax rate.
Buying in Newark saves you approximately $1,543/month ($18,516/year) compared to Jersey City, based on median home prices with identical loan terms.
Newark is the better choice for first-time buyers, with a median price of $385K versus $575K in Jersey City. That's $190K less to save for a down payment. You'd need roughly $13K for an FHA 3.5% down payment in Newark, compared to $20K in Jersey City. New Jersey offers the NJHMFA DPA Program program (Up to $15,000 forgivable) which applies in both cities.
Jersey City has the better price-to-rent ratio at 18.1x versus 19.4x in Newark. A lower ratio generally signals better rental income relative to purchase price. Average rent in Jersey City is $2,650/month on a $575K median home, making it a stronger candidate for buy-and-rent investors.
Newark (pop. 311,549) offers more amenities, schools, and services typical of a larger city, while Jersey City (pop. 292,449) may offer a quieter, more community-oriented lifestyle. Newark offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.