Lakewood, NJ vs Somerset, NJ

Lakewood, NJ and Somerset, NJ have a very similar cost of living, with only a 3.7% difference in their overall index. Lakewood scores 140 while Somerset scores 135 on the cost of living index, where 100 represents the national average. The day-to-day expenses for residents in both cities are comparable, though differences emerge when looking at specific categories.

On the housing front, median rent in Lakewood is $1,647/month compared to $2,050/month in Somerset — a 20% difference. Interestingly, home values tell a different story: while Lakewood has cheaper rent, Somerset actually has lower median home values ($408,600 vs $618,400).

Median household income in Lakewood is $57,576 compared to $113,603 in Somerset (-49.3%). Somerset offers a double advantage: higher earnings combined with a lower cost of living, giving residents significantly more purchasing power. Looking at affordability, residents of Lakewood spend roughly 34.3% of their income on rent, more than the 21.7% in Somerset. The Somerset ratio exceeds the commonly recommended 30% threshold, which can put pressure on household budgets.