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This article was originally published on December 31, 2024, and updated in October 2026.
New Jersey is one of the most expensive states in the country to buy a home. Prices for goods and services in New Jersey were 8.8% above the national average in 2024, the third-highest level among states, according to the latest Bureau of Economic Analysis data. Housing costs, however, vary widely across the state. Redfin reported a statewide median sale price of $587,553 in August 2026, up 2.2% from a year earlier. By contrast, three-month median sale prices in the communities in this guide ranged from $138,908 to $294,805. This guide compares ten of the cheapest places to live in New Jersey in 2026, weighing home prices against local incomes and property taxes and exploring the transit connections, parks and community amenities each place offers.
Key takeaways
Carneys Point is New Jersey’s most affordable place to buy in 2026, with a modeled income shortfall of just $9,492.
Salem has the lowest median sale price ($138,908) but ranks third because property taxes make up 39% of its modeled payment.
No community breaks even. In all ten places, the income needed to buy a median-priced home exceeds the local median household income.
All ten are in South Jersey, spread across Salem, Camden, Cumberland, Gloucester and Atlantic counties. Every one is in a county where NJHMFA offers up to $10,000 in down payment assistance.
Taxes, not price, decide the ranking. Effective tax rates on the list range from 2.155% (Atlantic City) to 4.505% (Salem).
Methodology
We evaluated homebuying affordability by comparing median home sale prices with local median household incomes across 15 lower-priced New Jersey communities.
Home prices come from Redfin’s August 2026 market updates for all home types, with price summaries covering the three months ending August. We screened about 40 lower-cost municipalities and census-designated places, kept only places with at least 10 home sales in August 2026, and shortlisted the 15 with the lowest median prices. Local incomes use the U.S. Census Bureau’s 2020–2024 American Community Survey five-year estimates, as reported by Data USA. These income figures are historical estimates, not measurements of 2026 earnings.
For each community, we estimated the monthly cost of buying a median-priced home using a 20% down payment, a 30-year fixed mortgage, and the interest rate, property tax and insurance assumptions detailed below the table. Because New Jersey property taxes vary sharply from town to town, we used each municipality’s 2025 effective tax rate from the New Jersey Division of Taxation instead of a county average. We then calculated the gross annual income needed to keep that payment at 28% of household income.
Places are ranked by their income gap:
Income gap = Estimated required annual income − Local median household income
A smaller gap indicates a smaller estimated income shortfall. A negative gap would mean the local median household income exceeds the modeled income target; no New Jersey community on our shortlist reached that point. The separate price ranking shows which communities have the lowest purchase prices.
This comparison includes cities, boroughs and census-designated places. For Carneys Point and Pennsville, which are census-designated places, we used the tax rate of the surrounding township. The comparison does not measure total living costs or guarantee mortgage eligibility. HOA fees, utilities, maintenance, closing costs and property tax relief programs such as ANCHOR and Stay NJ are excluded, and prices and income estimates in small markets can fluctuate. The top 10 order stays the same at interest rates of 7.03% and 7.53% and with insurance costs between 0.35% and 0.65% of price.
Home Prices vs. Local Incomes in New Jersey’s 10 Most Affordable Communities
Prices cover the three months ending August 2026 for all home types. Household incomes are ACS 2020–2024 five-year estimates, as reported by Data USA.
Home Prices vs. Local Incomes in New Jersey's 10 Most Affordable Communities
Financing assumptions. 20% down payment, 30-year fixed mortgage at 7.28%, Freddie Mac’s national average for October 1, 2026 (Freddie Mac PMMS). No private mortgage insurance is included.
¹ Estimated monthly payment. Principal, interest, estimated property taxes and homeowners insurance. Taxes use the New Jersey Division of Taxation’s 2025 municipal effective rates (2025 General Tax Rates): Carneys Point Township 2.482%; Millville 2.427%; Salem 4.505%; Camden 2.329%; Gloucester City 3.251%; Westville 3.169%; Atlantic City 2.155%; Bridgeton 3.625%; Pennsville Township 3.714%; Lindenwold 3.287%. These are estimating benchmarks, not actual tax bills for particular properties. Insurance is modeled at 0.483% of the purchase price per year, based on Insurance.com’s New Jersey average of $1,449 for $300,000 of dwelling coverage. Because purchase price and dwelling coverage are different measures, this is a modeling allowance, not an insurance quote. HOA charges, separate flood insurance, utilities, maintenance and closing costs are excluded.
² Required annual income. Estimated monthly payment × 12 ÷ 0.28. This keeps housing costs at 28% of gross income; it is not a universal mortgage qualification rule.
³ Household income. ACS 2020–2024 five-year estimates. These are historical estimates, not measurements of 2026 earnings. Carneys Point and Pennsville use census-designated place income profiles and their surrounding townships’ tax rates.
⁴ Income gap. Required annual income minus local median household income. A positive number is an estimated income shortfall. Calculations use unrounded payments, so recomputing from the whole-dollar figures shown can produce small differences.
The 10 Cheapest Places to Live in New Jersey
1. Carneys Point (Salem County)
Median sale price: $254,831
Affordability rank: 1
Price rank: 6 of 10
Estimated monthly payment: $2,025 (of which about $527 is property tax)
Carneys Point ranks first not because it has the cheapest homes but because local incomes come closest to covering the cost of a median-priced home. Its $77,273 median household income is the highest of the 15 places we shortlisted, and its 2.482% effective tax rate is among the lowest. At a $254,831 median sale price (up 3.2% year over year, per Redfin), the model estimates a $2,025 monthly payment and a required income of $86,765. That leaves a shortfall of $9,492, the smallest in New Jersey’s top 10.
2. Millville (Cumberland County)
Median sale price: $259,778
Affordability rank: 2
Price rank: 8 of 10
Estimated monthly payment: $2,052 (of which about $525 is property tax)
Millville calls itself “Holly City,” but its identity comes from glass. The Glasstown Arts District downtown has galleries, restored storefronts and the Riverfront Renaissance Center for the Arts, which offers free exhibitions and low-cost classes. On the edge of town, WheatonArts houses the Museum of American Glass, working glassblowing studios and a nature trail. The Maurice River runs through the city, with kayaking, fishing and the Maurice River Bike Trail.
Millville has the deepest market on this list, with 113 homes sold in August 2026, so its median is the most statistically reliable of the ten. Redfin reports a $259,778 median sale price, up 4.7% year over year. A $70,275 median household income and a 2.427% effective tax rate keep the modeled payment at $2,052 a month and the income gap at $17,664. Millville is also an Urban Enterprise Zone municipality, where qualifying local businesses charge a reduced sales tax rate.
3. Salem (Salem County)
Median sale price: $138,908
Affordability rank: 3
Price rank: 1 of 10
Estimated monthly payment: $1,338 (of which about $521 is property tax)
Established in 1675, Salem was the earliest English Quaker settlement along the Delaware River, and its downtown shows it. The Market Street Historic District is known for its 18th- and 19th-century architecture, and the Salem County Historical Society maintains a complex of historic buildings that includes a stone barn, a log cabin and the John Jones Law Office. For buyers who want character and a small-city pace at the lowest entry price in the state screen, Salem stands out.
Salem has the lowest median sale price: $138,908, down 22.3% year over year. But it ranks third, not first, because of property taxes. Its 4.505% effective tax rate is the highest of the 15 shortlisted places, and taxes account for about $521 of the $1,338 modeled monthly payment, or 39%. The model requires $57,331 in income, against a local median of $38,721.
4. Camden (Camden County)
Median sale price: $183,129
Affordability rank: 4
Price rank: 2 of 10
Estimated monthly payment: $1,432 (of which about $355 is property tax)
Camden sits directly across the Delaware River from Center City Philadelphia. PATCO trains connect the city to Philadelphia in minutes, and Rutgers University–Camden and Cooper University Hospital, the region’s major academic medical center, anchor the downtown. On the waterfront, Wiggins Waterfront Park has a promenade, a marina and the Riverstage with Adventure Aquarium nearby.
Camden has the second-lowest median price on the list at $183,129, up 7.1% year over year across 96 August sales. A 2.329% effective tax rate, low for New Jersey, keeps the modeled payment to $1,432 a month. Incomes are the constraint: a $40,546 local median leaves a $20,805 gap. Camden is also an Urban Enterprise Zone city.
5. Gloucester City (Camden County)
Median sale price: $246,337
Affordability rank: 5
Price rank: 5 of 10
Estimated monthly payment: $2,115 (of which about $667 is property tax)
Gloucester City is a tight-knit, walkable river town at the New Jersey foot of the Walt Whitman Bridge, which makes it one of the closest New Jersey communities to South Philadelphia’s stadiums and jobs. Proprietors Park and the riverfront give residents water views and space for community events. It is a practical choice for households where at least one earner commutes into Pennsylvania.
Prices here have cooled: Redfin reports a $246,337 median, down 8.8% year over year, with 47 August sales and a median of 27 days on market. The model estimates a $2,115 monthly payment, including about $667 in property taxes at a 3.251% effective rate. Against a $64,938 median household income, the income gap is $25,700.
6. Westville (Gloucester County)
Median sale price: $274,818
Affordability rank: 6
Price rank: 9 of 10
Estimated monthly payment: $2,341 (of which about $726 is property tax)
Water defines Westville. According to the borough’s recreation department, navigable waterways, including the Delaware River and Big Timber Creek, border it on three sides, making it a natural fit for boaters and anglers. In April 2026 the borough announced plans for a new walking path and gazebo along River Drive and Big Timber Creek, between Michael Galbraith Park and Delaware View Avenue.
Westville is a good example of income outweighing price. Its $274,818 median (up 0.7% year over year) ranks ninth of the ten on price, but a $70,639 median household income lifts it to sixth on affordability. The modeled payment is $2,341 a month and the income gap is $29,674.
7. Atlantic City (Atlantic County)
Median sale price: $229,848
Affordability rank: 7
Price rank: 3 of 10
Estimated monthly payment: $1,763 (of which about $413 is property tax)
Atlantic City is the only beach town on this list. Its beaches are free, and the Boardwalk offers miles of oceanfront walking, dining and entertainment. Stockton University’s Atlantic City campus and AtlantiCare’s regional medical center add education and health care close to home. NJ TRANSIT’s Atlantic City Rail Line runs to Philadelphia’s 30th Street Station, with stops in Lindenwold and Cherry Hill.
At $229,848, Atlantic City’s median sale price is the third-lowest on the list, although it rose 21.0% year over year. Its 2.155% effective tax rate is the lowest in the comparison, which keeps the modeled payment at $1,763 a month. Incomes are low ($41,028), so the gap is $34,546. Rents in Atlantic County rose 62% between 2019 and 2024, double the statewide increase, according to the state’s September 2026 housing data brief.
8. Bridgeton (Cumberland County)
Median sale price: $239,841
Affordability rank: 8
Price rank: 4 of 10
Estimated monthly payment: $2,134 (of which about $725 is property tax)
Bridgeton has one of the largest municipal historic districts in New Jersey, with more than 2,000 buildings from the Federal period to the 1920s. Its 1,100-acre City Park has trails, picnic areas, sports fields and the Cohanzick Zoo, which is free. Residents get plenty of open space and architecture at a price point that is hard to find elsewhere in the state. Bridgeton is an Urban Enterprise Zone city with fast-rising prices and high taxes, so the same buyer can qualify very differently from one property to the next.
Redfin reports a $239,841 median sale price, up 21.7% year over year across 34 August sales. Taxes are heavy: at a 3.625% effective rate, they add about $725 to a modeled $2,134 monthly payment, roughly a third of the total. A $55,781 median household income leaves a $35,671 gap.
9. Pennsville (Salem County)
Median sale price: $294,805
Affordability rank: 9
Price rank: 10 of 10
Estimated monthly payment: $2,645 (of which about $912 is property tax)
Pennsville sits on the Delaware River at the southern end of the Delaware Memorial Bridge. Riverview Beach Park has walking and bike paths, picnic areas, a playground and wide river views. Fort Mott State Park, a 19th-century coastal fort in Pennsville Township, adds shoreline trails and history. The community appeals to families who want a suburban setting and an easy drive to Delaware jobs.
Pennsville has the highest median price of the ten places on this list, at $294,805 (up 7.7% year over year, per Redfin). A $76,032 median household income, the second-highest on the list, keeps it in the top 10. Its 3.714% effective tax rate produces about $912 a month in estimated taxes and a $2,645 total payment, the highest of the ten. The income gap is $37,315.
10. Lindenwold (Camden County)
Median sale price: $258,828
Affordability rank: 10
Price rank: 7 of 10
Estimated monthly payment: $2,230 (of which about $709 is property tax)
Lindenwold’s biggest selling point is transit. Lindenwold Station is the eastern terminus of PATCO and also a stop on NJ TRANSIT’s Atlantic City Line, so residents can ride to Center City Philadelphia or toward the shore. Lindenwold Park offers ballfields, playgrounds, walking paths, exercise stations and an amphitheater used for concerts and movies.
Redfin reports a $258,828 median sale price, up 12.5% year over year, with 31 August sales. At a 3.287% effective tax rate, the modeled payment is $2,230 a month, and a $55,954 median household income leaves a $39,613 gap. Lindenwold edges out Trenton for 10th place by only $210, so the two are effectively tied.
Factors That Make These New Jersey Communities More Affordable
The ten places on this list share a few traits: lower home prices than the rest of the state, access to regional jobs and specific tax and assistance programs. Here is what drives affordability in New Jersey in 2026, and where each factor works for or against buyers.
1. Home prices far below the state and North Jersey
Every median on our list is under $300,000, about half the statewide median of $556,000 (EO17 Housing Data Brief). The gap with North Jersey is even wider: Bergen County’s single-family median reached $949,500 in July 2026, up 8.5% year over year (New Jersey REALTORS, Bergen County Local Market Update). That is nearly seven times Salem’s median. Existing homes are also much cheaper than new construction: the median price of new homes enrolled in the state’s warranty program was $415,000 in Cumberland County and $503,000 in Camden County in Q4 2025 (NJ DCA New Home Warranty report).
2. A tight housing supply that still pushes prices up
Lower prices do not mean flat prices. New Jersey’s active listings in early 2026 were 64% below 2019 levels, the third-steepest drop of any state (Harvard JCHS, State of the Nation’s Housing 2026). That helps explain double-digit annual price gains in Atlantic City (+21.0%), Bridgeton (+21.7%) and Lindenwold (+12.5%). Under the state’s fourth round of Mount Laurel affordable housing obligations, municipalities must plan for 84,698 affordable homes over the next decade, in addition to a present need of 65,410 (6sqft summary of DCA fourth-round figures), but new supply will take years to arrive.
3. Property taxes: the biggest swing factor
The average New Jersey residential property tax bill reached $10,340 in 2025 (FOX 29, citing the NJ Division of Taxation). In the communities on this list, bills are much lower because home values are lower, but effective tax rates vary widely, from 2.155% in Atlantic City to 4.505% in Salem (NJ Division of Taxation, 2025 General Tax Rates). That is why Salem, with the lowest prices, ranks only third, and why Carneys Point and Millville, with below-average tax rates, rank first and second.
4. Property tax relief programs
New Jersey offers several programs that reduce the net cost of property taxes. ANCHOR provides up to $1,500 to eligible homeowners with incomes up to $250,000 (NJ Treasury, ANCHOR); new 2026 applications are due November 2, 2026 (NJ Treasury, August 12, 2026). Stay NJ reimburses eligible homeowners aged 65 and older for 50% of their property tax bill, up to $6,500, with an income limit of $200,000 (NJ Treasury, Stay NJ). Our model excludes these benefits, so qualifying buyers may pay less than our estimates.
5. Down payment assistance and first-time buyer programs
NJHMFA’s First-Time Homebuyer Mortgage Program pairs a 30-year fixed government-insured loan with up to $10,000 in down payment assistance in Atlantic, Camden, Cumberland, Gloucester and Salem counties, which include all ten places on our list. Purchase price limits start at $566,355 in Cumberland County, $659,386 in Salem, Camden and Gloucester counties and $764,069 in Atlantic County. Income limits start at $134,600 for one- or two-person households (NJHMFA consumer fact sheet, updated June 17, 2026). Every median price on this list falls well within those limits. The program has helped 7,400 low- and moderate-income residents buy homes over two years (Governor’s housing transition report, January 2026).
6. Rising rents make buying more attractive
A New Jersey renter needs to earn $43.89 an hour to afford a two-bedroom apartment at the statewide Fair Market Rent of $2,282 (NLIHC Out of Reach 2026: New Jersey). Statewide median rent rose 31% between 2019 and 2024, while median income grew 22% (EO17 Housing Data Brief). By comparison, the modeled ownership payments on our list range from $1,338 in Salem to $2,645 in Pennsville, and several fall below that two-bedroom rent benchmark.
7. Everyday costs are still high
Lower housing costs do not mean a low cost of living. According to the 2026 ALICE report, 39% of New Jersey households were below the ALICE threshold in 2024, meaning they could not afford basic costs. The household survival budget was $115,872 for a family of four (NJ 21st Century, summarizing the 2026 ALICE report). NJ TRANSIT fares rose 3% on July 1, 2026, under a plan that raises them every year (New Jersey Monitor). Electricity costs were steadier: after the June 1, 2026 supply rate change, Atlantic City Electric’s average bill rose just 0.11% to $201.76 (ROI-NJ).
8. Urban Enterprise Zones
Four of the ten places on our list, Camden, Millville, Bridgeton and Gloucester City, are Urban Enterprise Zone municipalities (NJ DCA, UEZ locations). Qualifying businesses in these zones can charge a reduced sales tax rate of 3.3125%, half the standard state rate (NJ Division of Taxation). Zone programs also fund local economic development, which supports jobs and shopping close to home.
9. Job markets and access to Philadelphia and Delaware
Local job markets vary across South Jersey. In August 2026, unemployment was 4.6% in Gloucester County (USAFacts/BLS), 5.2% in Camden County (USAFacts/BLS), 5.4% in Atlantic County (USAFacts/BLS), 6.1% in Salem County (USAFacts/BLS) and 7.4% in Cumberland County, the highest in the state (USAFacts/BLS). Rates fell in every one of these counties compared with August 2025. Many residents also commute across the river: PATCO links Camden and Lindenwold to Philadelphia, the Walt Whitman Bridge serves Gloucester City, and the Delaware Memorial Bridge connects Carneys Point and Pennsville to Wilmington.
Quality of Life in New Jersey’s Most Affordable Communities
Affordability is only part of the decision. Buyers also want good health care, schools, parks and a reasonable commute. Here is how the communities on this list compare.
Health care
Camden is home to Cooper University Hospital, South Jersey’s major academic medical center, which serves Camden, Gloucester City and Lindenwold residents. In Salem County, Inspira Medical Center Mannington (formerly Salem Medical Center) became part of Inspira Health in 2023 (Inspira Health). Millville and Bridgeton residents rely on Inspira’s Vineland medical center, and Atlantic City has AtlantiCare Regional Medical Center’s City Campus.
Education
Higher education is within reach in nearly every community on the list: Rutgers University–Camden and Camden County College in Camden, Salem Community College in Carneys Point, Stockton University’s Atlantic City campus, and Rowan College of South Jersey’s Cumberland campus near Millville and Bridgeton. K–12 quality varies by district, so buyers with children should compare school performance data from the New Jersey Department of Education before choosing a town.
Parks, water and outdoor recreation
Many of these towns sit on water. Westville is bordered by waterways on three sides, Pennsville has Riverview Beach Park and Fort Mott State Park, Millville sits on the Maurice River, and Atlantic City has free beaches and the Boardwalk. Inland, Bridgeton’s 1,100-acre City Park and free Cohanzick Zoo and Lindenwold Park’s trails and amphitheater give residents a lot of green space. Buyers near the water should check FEMA flood maps, since flood insurance is not included in our estimates.
Arts, history and culture
Millville’s Glasstown Arts District and WheatonArts, Salem’s Market Street Historic District, Bridgeton’s historic district of more than 2,000 buildings, and Camden’s waterfront attractions give these communities character that is hard to find at these prices.
Commuting and transportation
Transit can lower a household’s total cost of living. Camden and Lindenwold are on PATCO, Lindenwold and Atlantic City are on NJ TRANSIT’s Atlantic City Line, and Gloucester City, Carneys Point and Pennsville sit next to major bridges into Pennsylvania and Delaware. Buyers should weigh bridge tolls and annual fare increases against the savings on housing.
Safety and community
Public safety varies from neighborhood to neighborhood, even within a single city. We recommend that buyers review local police department data and the New Jersey State Police Uniform Crime Reports, visit at different times of day and talk with neighbors before making an offer.
Conclusion
New Jersey remains one of the toughest states for homebuyers, but South Jersey still offers real opportunities. In Carneys Point, Millville and Salem, local incomes come within about $10,000 to $19,000 of what’s needed to buy a median-priced home, and the other seven communities on this list offer prices well below the state median.
In New Jersey, property taxes can change monthly payment by hundreds of dollars from one town to the next.
These ten markets offer a deep pool of first-time buyers, renters facing rising costs and investors looking for rental yield. Success here depends on getting taxes right from the start, pairing clients with assistance programs and having flexible loan options for borrowers who don’t fit a standard file. Partnering with AD Mortgage gives you access to a broad wholesale product lineup, including conventional and government loans as well as Non-QM loans such as bank statement loans for self-employed borrowers and DSCR loans for investors, along with the support you need to close more loans in New Jersey’s most affordable communities.
Read More on Most Affordable Places: Find Your Dream State!
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Written by
Carl Holman
Communications Manager
As AD Mortgage’s Communications Manager, Carl Holman has more than 20 years of expertise in marketing, media relations, and communications, having spent 10 years of his career in mortgage lending and real estate. He holds a Bachelor’s in Journalism and Mass Communications from the University of South Carolina.
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