New Jersey, renowned for its vibrant culture and proximity to major metropolitan hubs, also boasts significant economic prosperity. Understanding the financial landscape of the Garden State requires a closer look at family incomes, a key indicator of economic well-being. While rankings of richest zip codes offer a glimpse into concentrated wealth, examining the Nj Median Family Income provides a more nuanced understanding of the typical family’s financial standing across the state. This article delves into the latest data to explore New Jersey’s family income, offering insights into how families are faring financially in 2024.
To begin, let’s consider the broader income distribution within New Jersey. The state exhibits a wide range of household incomes, highlighting economic diversity alongside affluence.
| Households | 3,478,355 | 100% |
|---|---|---|
| Less than $10,000 | 140,262 | 4% |
| $10,000 to $14,999 | 99,362 | 3% |
| $15,000 to $19,999 | 82,366 | 2% |
| $20,000 to $24,999 | 93,036 | 3% |
| $25,000 to $29,999 | 92,512 | 3% |
| $30,000 to $34,999 | 92,241 | 3% |
| $35,000 to $39,999 | 92,046 | 3% |
| $40,000 to $44,999 | 93,314 | 3% |
| $45,000 to $49,999 | 91,241 | 3% |
| $50,000 to $59,999 | 179,329 | 5% |
| $60,000 to $74,999 | 268,863 | 8% |
| $75,000 to $99,999 | 397,939 | 11% |
| $100,000 to $124,999 | 349,617 | 10% |
| $125,000 to $149,999 | 277,909 | 8% |
| $150,000 to $199,999 | 407,723 | 12% |
| $200,000 or more | 720,595 | 21% |
This distribution reveals that while a significant portion of households earn over $100,000 annually, a considerable number still fall into lower income brackets. However, to understand the financial reality for families specifically, median family income is a more insightful metric.
Delving into New Jersey Median Family Income
According to the most recent data, the median family income for New Jersey is $123,892. This figure represents the midpoint: half of New Jersey families earn more than this amount, and half earn less. It’s crucial to understand that “family income” here refers to the combined income of all individuals living together who are related by birth, marriage, or adoption. Single-person households are not included in this calculation.
Understanding Median vs. Average Income: Why Median Matters for Families
When analyzing income data, it’s important to distinguish between average and median income. The average family income for New Jersey is $164,717, notably higher than the median. This difference arises because the average is skewed upwards by extremely high incomes. Imagine a small town where most families earn around $70,000, but one family earns $10 million – the average income would be significantly inflated by this single outlier.
The median, on the other hand, is not affected by outliers. It provides a more accurate representation of what a “typical” family in New Jersey earns. For most people trying to understand the financial well-being of families in New Jersey, the nj median family income of $123,892 is a more relevant and realistic benchmark than the average.
For business owners and marketers targeting families, understanding the median income is particularly valuable. It helps to gauge the purchasing power of the majority of families, rather than being misled by an average inflated by a small percentage of very high earners.
New Jersey Income Beyond Family: A Broader Perspective
While nj median family income offers a crucial insight, it’s also helpful to consider other income metrics to paint a comprehensive picture of New Jersey’s financial landscape.
- Median Household Income: For all households (including single-person households), the median income in New Jersey is $96,346. This is lower than the median family income because it includes single individuals, who generally have lower incomes.
- Median Income for Single-Person Households: The median income for individuals living alone in New Jersey is $48,806.
- Per Capita Income: The per capita income in New Jersey, which divides the total income by the entire population (including children and non-workers), is $53,118. This figure is generally the lowest as it encompasses everyone, not just earners or families.
- Median Salary for Full-Time Workers: For those employed full-time in New Jersey, the median salary is $73,910. This focuses specifically on individual earnings from employment.
Income Variation Across Age Groups
Income levels also vary significantly depending on the age of the householder. This is a typical pattern reflecting career progression and retirement.
| New Jersey | |
|---|---|
| Householder under 25 years | $53,231 |
| Householder 25 to 44 years | $109,946 |
| Householder 45 to 64 years | $122,699 |
| Householder 65 years and over | $69,102 |
As the table shows, median household income peaks for householders in the 45-64 age range, aligning with prime earning years. It’s noteworthy that even younger householders (under 25) in New Jersey have a relatively high median income compared to national averages, indicating a generally strong economic base even for younger adults in the state.
Richest Zip Codes vs. Median Family Income: Different Perspectives on Wealth
While lists of “richest zip codes” are popular, they primarily highlight areas with concentrated high average incomes, often skewed by a small number of ultra-wealthy residents. These lists, such as the one below showcasing the top 10 richest zip codes in New Jersey by mean income, offer a different perspective than nj median family income.
| Rank | Zip Code | Population | Mean Income | Median Household Income |
|---|---|---|---|---|
| 1 | 07078 | 14,183 | $518,249 | $250,001 |
| 2 | 07423 | 4,230 | $397,531 | $250,001 |
| 3 | 07620 | 1,503 | $389,568 | $250,001 |
| 4 | 07021 | 2,320 | $373,266 | $250,001 |
| 5 | 07458 | 11,712 | $367,191 | $244,155 |
| 6 | 07043 | 13,502 | $349,644 | $250,001 |
| 7 | 07760 | 9,557 | $348,097 | $217,545 |
| 8 | 08738 | 1,371 | $338,768 | $218,667 |
| 9 | 07704 | 6,182 | $328,614 | $237,132 |
| 10 | 07046 | 4,535 | $327,881 | $250,001 |
Notice that while these zip codes have incredibly high mean incomes, the median household income is capped at $250,001 (the Census’s “jam value”). This further underscores the point that average income can be misleading in areas with extreme income disparity. While these zip codes are undoubtedly affluent, focusing solely on them doesn’t provide a complete picture of the financial reality for the average New Jersey family.
Conclusion: NJ Median Family Income as a Key Economic Indicator
Understanding nj median family income is essential for grasping the economic well-being of families in New Jersey. At $123,892, it signifies a relatively high standard of living compared to national figures. While average income and lists of richest zip codes highlight pockets of extreme wealth, the median family income offers a more grounded and representative view of the financial circumstances of typical New Jersey families. This data is invaluable for policymakers, businesses, and anyone seeking a realistic understanding of the economic landscape in the Garden State.
Data Sources:
All data presented is derived from the most current US Census Bureau, American Community Survey 2023 5-year estimates, downloaded December 12, 2024. Specific data tables used are listed in the original article for detailed verification.
