Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between New Jersey and Pennsylvania. Updated for 2026.
Pennsylvania wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $280K and lower overall costs, Pennsylvania offers meaningful savings compared to New Jersey. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $2,095/month — that’s $25,140/year or $754K over the life of a 30-year loan. Buying in Pennsylvania is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in New Jersey, you need a household income of approximately $181K/year. In Pennsylvania, you need $91K/year — less by $90K/year. That $90K income gap means Pennsylvania is accessible to a significantly wider range of households.
Pennsylvania offers meaningfully lower home prices than New Jersey, with median prices running 45% less ($225K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of New Jersey may find Pennsylvania far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Pennsylvania charges 1.36% while New Jersey charges 2.47%, a gap of 1.11 percentage points. On the respective median homes, this means New Jersey homeowners pay roughly $12,474 per year in property taxes versus $3,808 in Pennsylvania. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Closing costs are a one-time but significant expense. New Jersey averages $10K in closing costs (2% of purchase price) while Pennsylvania averages $5K (1.7%). Much of New Jersey's higher costs come from its 1% transfer tax, which adds $5K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. New Jersey's NJHMFA DPA Program provides Up to $15,000 forgivable, while Pennsylvania's PHFA Keystone Advantage offers Up to $6,000 DPA. 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.
The bottom line: Pennsylvania homes cost $225K less than New Jersey on average. That translates to roughly $2,095 less per month in total housing costs if you choose Pennsylvania. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.