by Kristen Carney
Updated: June 20, 2024
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).
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 |
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:
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.
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.
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.
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.
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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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