Parsippany Among NJ's Most Expensive Towns, Report Says

PARSIPPANY, NJ — Have you ever wondered how affordable it is to have a home near Parsippany?

According to a new report released this week, the average American household spends $24,557 per year on the most important household bills, but the average Parsippany resident spends significantly more.

As the cost of living in the United States continues to rise, residents of Hawaii, California, New Jersey, Massachusetts, and Maryland may be feeling more pressure, as these states top the list of the most expensive.

Morris County is the most expensive county in New Jersey, according to doxo's 2023 State by State Bill Pay Market Report, which examines the $3.87 trillion U.S. consumer bill pay market.

The report, which reflects actual bill payment activity in more than 97 percent of U.S. zip codes, identifies the most and least expensive states for Americans to live in based on average monthly spending on actual household bill payments.

According to the report, Parsippany's annual bills are $9,884 higher than the national average, totaling $34,441 per year and $2,870 per month.

"Household expenses in Parsippany, New Jersey are 40.2 percent more than the U.S. average," the report states.

Parsippany is the 67th most expensive town in New Jersey for household expenses and the ninth most expensive in Morris County, trailed by Denville Township, Rockaway and Dover.

One of the main contributors is Parsippany's mortgage and rent prices. According to the study, the average mortgage payment in Parsippany is $2,640, while the national average is $1,321. For renters, that price goes down to $1,491 in Parsippany and $1,191 nationally.

Health insurance is one of the only categories in Parsippany that is lower than in other areas. The average Parsippany resident pays $117 per month for health insurance, compared to $120 nationally.

"As consumers navigate their household bills in today’s volatile marketplace, bill payers may feel left in the dark, not fully understanding how much they are truly paying each month," said Liz Powell, Senior Director of INSIGHTS at doxo.

Earlier this year, the National Low Income Housing Coalition released its annual report on rental costs, showing that many Americans make less than their area's "housing wage—the hourly, full-time wage needed to afford fair-market rent without spending more than 30 percent of their income.

According to the NLIHC, New Jersey has one of the highest minimum wages in the country, at $14.13 per hour.

However, Parsippany's market rate for a two-bedroom apartment is $1,850 per month, which would necessitate an hourly wage of $35.58, which amounts to approximately $72,800 per year.

According to the NLIHC, 26 percent of tenant households in New Jersey earn less than what is required to afford two-bedroom rent. According to the report, even affording a "modest" one-bedroom apartment at market rate necessitates 79 minimum-wage hours per week.

View the NLIHC's full report: Out of Reach 2023: The High Cost of Housing.