London vs Newark
Cost of Living Comparison · 2026
London
Newark
The Verdict
London is 5.0% less expensive than Newark overall. A household earning $75,000 in London would need approximately $78,913 in Newark to maintain the same standard of living.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in London has the same purchasing power as $78,913 in Newark.
Conversely, $75,000 in Newark equals $71,281 in London.
Living in London vs Newark
Housing Costs
London's housing index of 162 is higher Newark's 149, translating to median home prices of $695,000 vs $340,000. The $355,000 difference in home prices means roughly $23,076 per year in additional mortgage costs at current rates. Renters face a similar gap: $2,400/mo in London compared to $1,400/mo in Newark, a monthly difference of $1,000.
Grocery & Food Costs
Grocery expenses index at 92 in London and 103 in Newark. A household spending the national average of $475/month on groceries would pay approximately $437/month in London vs $489/month in Newark. London offers a meaningful advantage on everyday food costs, saving roughly $624/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 112 in London and 118 in Newark. Monthly utility bills average approximately $448 in London vs $472 in Newark. Utility costs are relatively comparable between these two cities.
Healthcare
Healthcare costs index at 78 in London and 105 in Newark. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 27-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.
Income & Purchasing Power
Median household income is $55,000 in London and $40,014 in Newark. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $47,826 and $33,069 respectively. London residents enjoy stronger real purchasing power despite higher nominal wages.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $1,283/month to housing in London vs $934/month in Newark. In London, median rent of $2,400/mo exceeds this threshold, suggesting renters may feel stretched. In Newark, median rent of $1,400/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Healthcare, where the gap is 27 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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