Richest Cities in New Jersey (2024)

by Kristen Carney Kristen Carney

Updated: June 20, 2024

Richest City in New Jersey

The richest city in New Jersey is Rumson with an average household income of $424,834 as of 2022 and 7,178 people as of 2023 according to the most current Census data available (citation).

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20 Richest Cities in New Jersey

Rank City County Population Average Income Median Income
1 Rumson Monmouth 7,178 $424,834 $250,001
2 Millburn Essex 21,859 $403,086 $250,001
3 Rockleigh Bergen 405 $388,845 $206,250
4 Ho-Ho-Kus Bergen 4,232 $387,818 $250,001
5 Mantoloking Ocean 332 $377,855 $240,417
6 Mendham township Morris 5,989 $371,996 $240,962
7 Alpine Bergen 1,750 $352,198 $228,194
8 Saddle River Bergen 3,368 $350,550 $228,750
9 Essex Fells Essex 2,138 $343,062 $247,000
10 Sea Girt Monmouth 1,841 $342,876 $218,438
11 Fair Haven Monmouth 6,109 $330,233 $229,643
12 Chatham township Morris 11,127 $328,478 $208,910
13 Upper Saddle River Bergen 8,480 $328,250 $234,476
14 Mountain Lakes Morris 4,608 $327,082 $250,001
15 Glen Ridge Essex 7,952 $317,792 $246,429
16 Bernardsville Somerset 7,837 $312,818 $220,060
17 Chatham borough Morris 9,275 $307,559 $250,001
18 North Caldwell Essex 6,574 $304,168 $215,000
19 Englewood Cliffs Bergen 5,321 $301,952 $213,261
20 Franklin Lakes Bergen 11,021 $297,367 $204,917

Median Income versus Average Income: Which Should You Use?

We usually suggest using median income data – either instead of or in addition to – average income data as a true indicator of wealth. If you haven’t thought about median versus average since your last standardized test, you aren’t alone. Here’s what they are:

  • average is the sum of a set of numbers divided by the count of numbers in the set
  • median is the middle number in the set of numbers
illustation of median vs average

Now let’s say you had the following simplified set of income data.

Household 1: $30,000
Household 2: $50,000
Household 3: $1,000,000

The average income for this set is $360,000. The outlier data point ($1,000,000) skews the average WAY up. Conversely, the average income would be skewed WAY down if someone had an income of $500. The median income for the same data set is $50,000. Outlier data doesn’t skew the median.

Most Business Owners Should Use Median Income

So most business owners should use the median income as a true indicator of wealth, because it provides a more accurate representation of a typical income, especially in areas with significant income disparity.

When Should You Use Average Income

If your target market is high-income households, the average income may be more relevant. This is because the average income can highlight the presence of a higher concentration of wealthy individuals, which is beneficial for luxury goods and services marketing. We’re using average income on this page because using the Census’s highest reported median value of $250,001 could result in multiple ties for the richest geography.

Why do so many cities have a median value of $250,001?

The Census' American Community Survey uses $250,000+ as a jam value for median income estimates to protect privacy, ensure data consistency, and simplify reporting. A "jam value" in survey data refers to a placeholder or default value used when actual data points are unavailable, incomplete, or exceed certain thresholds. We represent this jam value as $250,001 to make it easy for you to sort.

SOURCES

United States Census Bureau. Annual Estimates of the Resident Population: April 1, 2020 to July 1, 2023. U.S. Census Bureau, Population Division. Web. May 2024. http://www.census.gov/.

United States Census Bureau. B01001 SEX BY AGE, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.

United States Census Bureau. B19013 Median Household Income, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.

United States Census Bureau. “DP03 SELECTED ECONOMIC CHARACTERISTICS.” 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 07 December 2023. http://www.census.gov/.

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