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Delaware vs New Jersey:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Delaware and New Jersey. Updated for 2026.

MetricDelawareNew Jersey
Median Home Price$355K$505K
Property Tax Rate0.56%2.47%
Avg Closing Costs$12K$10K
Closing Cost %3.3%2.0%
Transfer Tax4%1%
Homeowners Insurance$1,300/yr$1,500/yr
First-Time Buyer Program
DSHA Homeownership Loan
Up to 5% Preferred Plus
NJHMFA DPA Program
Up to $15,000 forgivable
Verdict

Delaware and New Jersey are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Delaware
Home Price$355,000
Down Payment (10%)$35,500
Loan Amount$319,500
Monthly P&I$2,019
Monthly Property Tax$166
Monthly Insurance$108
Monthly PMI$133
Total PITI$2,427/mo
Annual property tax: $1,988
New Jersey
Home Price$505,000
Down Payment (10%)$50,500
Loan Amount$454,500
Monthly P&I$2,873
Monthly Property Tax$1,039
Monthly Insurance$125
Monthly PMI$189
Total PITI$4,227/mo
Annual property tax: $12,474

The monthly payment difference is $1,800/month — thats $21,600/year or $648K over the life of a 30-year loan. Buying in Delaware is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Delaware
$104K/yr
minimum household income
New Jersey
$181K/yr
minimum household income

To afford the median home in New Jersey, you need a household income of approximately $181K/year. In Delaware, you need $104K/year — less by $77K/year. That $77K income gap means Delaware is accessible to a significantly wider range of households.

Which State Is Right for You?

Delaware offers meaningfully lower home prices than New Jersey, with median prices running 30% less ($150K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of New Jersey may find Delaware far more accessible, particularly when combined with local down payment assistance programs.

Property taxes are dramatically different: Delaware charges 0.56% while New Jersey charges 2.47%, a gap of 1.91 percentage points. On the respective median homes, this means New Jersey homeowners pay roughly $12,474 per year in property taxes versus $1,988 in Delaware. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.

Both states offer down payment assistance for first-time buyers. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, while New Jersey's NJHMFA DPA Program offers Up to $15,000 forgivable. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: property taxes are the defining difference here. New Jersey's 2.47% rate versus Delaware's 0.56% means Delaware homeowners save approximately $10,486 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Delaware or New Jersey?
Delaware is cheaper overall. The median home costs $355K compared to $505K in New Jersey, and the total monthly PITI payment is $2,427 versus $4,227. That works out to $1,800 less per month or $21,600 less per year in Delaware.
How much more are property taxes in New Jersey vs Delaware?
New Jersey has a property tax rate of 2.47% compared to 0.56% in Delaware. On the median home, that means New Jersey homeowners pay approximately $12,474/year in property taxes versus $1,988/year in Delaware — a difference of $10,486/year.
Which state has better first-time buyer programs, Delaware or New Jersey?
Delaware offers the DSHA Homeownership Loan (Up to 5% Preferred Plus), while New Jersey has the NJHMFA DPA Program (Up to $15,000 forgivable). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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