New ALICE Data Shows Rising Cost of Basics Historically Outpaces Overall Inflation in New Jersey
- 2 days ago
- 2 min read
Research zeroes in on households living paycheck to paycheck, priced out of survival
The cost of household necessities in New Jersey rose faster than inflation for more
than 15 years, leaving many households vulnerable to the growing affordability crisis, according to new data from United Way of Northern New Jersey and its research arm United For ALICE.
The latest State of ALICE report for New Jersey includes data from the ALICE Essentials Index, which tracks the rising costs of only six basics families need to live and work: housing, child care, food, transportation, health care and technology. Between 2007 and 2024, the ALICE Essentials Index for New Jersey increased nearly 70%, compared with 52% for the broader Consumer Price Index (CPI), which reports inflation across more than 200 categories of goods and services.
The report highlights the growing financial strains on the demographic known as ALICE (Asset Limited, Income Constrained, Employed). With income above the Federal Poverty Level but unable to afford basic expenses, 1,050,032 New Jersey households were ALICE in 2024. When combined with households in poverty, 39% of all households in New Jersey fell below the ALICE Threshold of Financial Survival.
“Behind these numbers are families making impossible choices every day — between groceries and utilities, child care and rent,” said United Way of Northern New Jersey CEO Kiran Handa Gaudioso. “The ALICE data fuels our movement with partners across the country, creating opportunity and building stronger paths to stability.”
The crux of the struggle for ALICE families is the gap between wages and expenses. In 2024, a family of four in New Jersey needed $115,872 just to cover the essentials — nearly four times the Federal Poverty Level of $31,200. Yet even with both parents working full time in two of the state’s most common jobs — a cook and a teller — this family’s combined income still fell short of the cost of basics by $35,667.
The State of ALICE in New Jersey also reveals that in 2024:
New Jersey ranked 26th in financial hardship among all 50 states and the District of Columbia, placing it near the national midpoint. Yet nearly 2 in 5 households still struggled to afford basic necessities.
ALICE households were found in every major industry statewide, with high levels of hardship in accommodation and food services (40%), transportation and warehousing (36%) and construction (30%).
Poverty rates in New Jersey have remained relatively flat since 2010, while the number of ALICE households has steadily increased.
Minimum-wage workers in New Jersey saw hourly pay rise to $15.13, up from $14.13 in 2023. Yet for one full-time adult worker with one school-age child, that wage still was not enough to support the ALICE Household Survival Budget, the minimum cost of basics, in any county across New Jersey.
“The ALICE research shows that the affordability crisis is not new,” said Stephanie Hoopes, Ph.D., National Director at United For ALICE. “Already stretched thin, ALICE families have no cushion for rising gas or utility costs — forcing tough tradeoffs with other necessities. That’s the insight policymakers and community leaders need to build a stronger future for ALICE and all.”
More state and local data is available through the interactive dashboards on UnitedForALICE.org/New-Jersey
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