Cost of Living in Cape May, NJ

With a cost of living index of 133, Cape May, NJ is a notably expensive place to live. Living here is 33% more expensive than the national average and 5% above the New Jersey state average of 128. Cape May is a small community of 2,789 residents.

Housing costs are the biggest factor in Cape May's cost of living. The median monthly rent is $1,013 (23% below the US median of $1,319), and the median home value sits at $823,800 (170% above the national median of $304,900). At current prices, the median home costs roughly 14.4x the median household income — a challenging ratio that puts homeownership out of reach for many residents.

The median household income in Cape May is $57,230, which is 24% lower than the national median of $75,149. Residents spend roughly 21% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Everyday prices in the Atlantic City-Hammonton, NJ (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 5 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.