City Comparison

Allentown vs Paterson

Cost of Living Comparison · 2026

Allentown

Pennsylvania
98
Average
$232,000
Median Home
$1,225/mo
Median Rent
$55,500
Median Income

Paterson

New Jersey
125
Expensive
$360,000
Median Home
$1,450/mo
Median Rent
$56,000
Median Income

The Verdict

21.6%

Allentown is 21.6% less expensive than Paterson overall. A household earning $75,000 in Allentown would need approximately $95,663 in Paterson to maintain the same standard of living.

Category-by-Category Breakdown

Index values · National average = 100 · Lower is more affordable

Housing
109
Allentown
137
Paterson
Groceries
101
Allentown
106
Paterson
Utilities
102
Allentown
111
Paterson
Transportation
103
Allentown
105
Paterson
Healthcare
83
Allentown
112
Paterson

Salary Equivalence

A $75,000 salary in Allentown has the same purchasing power as $95,663 in Paterson.

Conversely, $75,000 in Paterson equals $58,800 in Allentown.

Living in Allentown vs Paterson

Housing Costs

Allentown's housing index of 109 is lower Paterson's 137, translating to median home prices of $232,000 vs $360,000. The $128,000 difference in home prices means roughly $8,316 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,225/mo in Allentown compared to $1,450/mo in Paterson, a monthly difference of $225.

Grocery & Food Costs

Grocery expenses index at 101 in Allentown and 106 in Paterson. A household spending the national average of $475/month on groceries would pay approximately $480/month in Allentown vs $504/month in Paterson. The difference in grocery costs between these cities is relatively minor and unlikely to be a deciding factor in relocation.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 102 in Allentown and 111 in Paterson. Monthly utility bills average approximately $408 in Allentown vs $444 in Paterson. Utility costs are relatively comparable between these two cities.

Healthcare

Healthcare costs index at 83 in Allentown and 112 in Paterson. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 29-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $55,500 in Allentown and $56,000 in Paterson. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $56,633 and $44,800 respectively. Allentown residents enjoy stronger real purchasing power despite lower nominal wages.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $1,295/month to housing in Allentown vs $1,307/month in Paterson. In Allentown, median rent of $1,225/mo fits within this budget. In Paterson, median rent of $1,450/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Healthcare, where the gap is 29 index points — focus your budget analysis there.

Frequently Asked Questions

Allentown is 21.6% more affordable overall with an index of 98 vs 125.
A $75,000 salary in Allentown has equivalent purchasing power to approximately $95,663 in Paterson, based on the cost of living difference.
Allentown's housing index is 109 with median homes at $232,000, while Paterson's is 137 with median homes at $360,000.

Moving & Relocation Resources

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