Newark vs Los Angeles

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: New Jersey salaries · California salaries

Living in Newark vs Los Angeles

Housing is typically the biggest factor in any cost-of-living comparison. Newark has a housing index of 149 while Los Angeles sits at 262 (national average = 100). The median home in Newark costs $340,000 compared to $850,000 in Los Angeles, a difference of $510,000. Monthly rent follows a similar pattern: $1,400 in Newark versus $2,700 in Los Angeles.

Groceries and everyday expenses show a narrower gap: Newark scores 103 while Los Angeles scores 107.

Healthcare costs in Newark (105) are higher than Los Angeles (103). Both are close to the national average.

Median household income in Newark is $40,014 compared to $65,290 in Los Angeles. When adjusted for cost of living, income goes further in Newark.

Relocating: Newark vs Los Angeles

If you are considering a move between Newark (index: 121) and Los Angeles (index: 166), the 27% cost difference has real implications for your budget. Newark is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Newark can afford $934/month, while the median household in Los Angeles can afford $1,523/month. With median homes at $340,000 in Newark versus $850,000 in Los Angeles, the higher-cost city presents significant affordability challenges.

Renting vs buying: At $1,400/month in Newark and $2,700/month in Los Angeles, renters save significantly in Newark. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes significantly further in Newark. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Newark (121) vs Los Angeles (166)

The cost of living index uses 100 as the national average. Newark at 121 is 21% above the US average, while Los Angeles at 166 is 66% above average. There is a meaningful cost gap between these two cities that affects day-to-day budgeting.

The 45-point spread between Los Angeles (166) and Newark (121) is large enough to reshape a household budget entirely, especially for single-income families. The biggest category divergence is housing, where Newark scores 149 and Los Angeles scores 262. That 113-point gap is the primary driver of the overall cost difference between these two metros. Housing, the largest line item for most households, favors Newark with indices of 149 versus 262. Median home prices of $340,000 in Newark and $850,000 in Los Angeles underscore this gap. Neither city is cheaper across the board: Newark has an edge in housing and groceries, while Los Angeles is more affordable for utilities and healthcare. Your actual savings depend on which categories consume the biggest share of your personal budget.

For renters: With median rents of $1,400/month in Newark and $2,700/month in Los Angeles, the annual rent difference is approximately $15,600. Over a 5-year period, that compounds to $78,000 in savings by choosing the more affordable city.

For homebuyers: The $510,000 difference in median home prices between Newark and Los Angeles translates to roughly $30,600 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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