F
49%
Overall NAT. AVG.
1%
Goods & Services NAT. AVG.
158%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Ocean City New Jersey National
Cost of living149121100
Goods & Services101106100
Groceries100102100
Health care9999100
Housing258158100
Transportation101103100
Utilities107107100

An Overview of Cost of Living in Ocean City, NJ

The cost of living in Ocean City affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Ocean City is 149, which is 49% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Ocean City is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Ocean City falls into this category, which may not align with your goal of finding a budget-friendly living environment.

When it comes to the cost of living in Ocean City, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 158.1% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Is Ocean City Affordable?

Wondering if Ocean City is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Ocean City, for example, the median home price is 210.4% higher than what folks pay nationally, and monthly rent is 36% higher than the usual rates. Plus, income levels matter too, with Ocean City boasting a median household income of $87,060, which is 57.4% higher than the national average.

What Factors can Influence the Cost of Living in Ocean City?

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Ocean City, the transportation index is 0.9% higher than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Ocean City starts at 6.625% and the income tax rates start at 1.4%.

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Ocean City, the groceries index is 0.1% lower than the national average.

Where is the Data From?

The cost of living data in Ocean City displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Ocean City is 23% higher than the New Jersey average
  • The cost of living in Ocean City is 49% higher than the national average
  • Ocean City housing is 158% higher than the national average
  • New Jersey general sales tax is 30% higher than the national average
  • New Jersey state income tax is 46% lower than the national average

Most Affordable Places to Live in and Around Ocean City

See all the best places to live around Ocean City

Compare Ocean City, NJ Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$107,500$8,958$2,508$3,225
      Renters$41,737$3,478$974$1,252
      To approximate the cost of living and the housing affordability in Ocean City, NJ, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Ocean City have a median income of $107,500. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,508 per month to avoid calamity and poverty. The renters in the city have an income of about $41,737, which would make their monthly maximum allowable rental costs $974.

      New Jersey Sales Tax

      State General Sales Tax With Max Surtax
      New Jersey 6.625% 12.625%

      New Jersey Income Tax

      State Income Tax (Low) Income Tax (High)
      New Jersey 1.4% 10.75%

      Goods & Services

      Item Ocean City National avg. Difference
      Haircut $23.17$24.264.5%
      Beauty Salon $52.17$45.5614.5%
      Toothpaste $3.59$3.703.1%
      Shampoo $1.28$1.280.0%
      Movie $12.40$12.132.2%
      Bowling $19.44$18.008.0%

      Groceries

      Item Ocean City National avg. Difference
      Ground Beef $6.11$5.844.7%
      Fried Chicken $1.41$1.5710.1%
      Milk $4.68$4.670.1%
      Potatoes $5.38$4.939.0%
      Pizza $12.29$12.091.7%
      Beer $11.43$10.419.8%

      Health Care

      Item Ocean City National avg. Difference
      Optometrist $143.30$125.6814.0%
      Doctor $134.50$135.780.9%
      Dentist $120.11$113.296.0%
      Ibuprofen $10.51$10.651.3%
      Lipitor $377.86$468.6019.4%

      Housing

      Item Ocean City National avg. Difference
      Home Price $573,400.00$184,700.00210.4%
      Avg. Mortgage Payment $1,951.15$2,346.6916.9%
      Apartment Rent $1,291.00$949.0036.0%

      Transportation

      Item Ocean City National avg. Difference
      Gasoline $3.44$3.460.5%
      Tire Balancing $62.39$59.924.1%

      Utilities

      Item Ocean City National avg. Difference
      All Electricity $214.53$193.9910.6%
      Phone $195.25$192.251.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Strathmere, NJ591021.7%
      Pleasantville, NJ20,226982.1%
      Atlantic City, NJ37,793981.5%
      Woodbine, NJ2,352972.7%
      Pomona, NJ7,7561021.9%
      Ocean City, NJ11,06514948.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Marieville, QC11,065n/a 
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      Minooka, IL11,06911111.4%
      Plano, IL11,0581033.3%
      Kaneohe Station, HI11,07217676.2%
      Ocean City, NJ11,06514948.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.