Richmond vs Paterson: Cost of Living Comparison
How does the cost of living in Richmond, Virginia compare to Paterson, New Jersey? Below is a side-by-side breakdown of housing costs, income, wages, and taxes using official government data.
Summary: Richmond is the more affordable city overall. Housing costs are 2% lower in Richmond compared to Paterson, while rent is 12% lower. State income tax is 5.75% in VA vs 10.75% in NJ.
| Metric | Richmond, VA | Paterson, NJ | Diff |
|---|---|---|---|
| Housing | |||
| Median Home Value | $308,300 | $314,100 | -1.8% |
| Median Monthly Rent | $1,227 | $1,392 | -11.9% |
| Income | |||
| Median Household Income | $59,606 | $52,092 | +14.4% |
| Per Capita Income | $42,132 | $23,035 | +82.9% |
| Taxes | |||
| State Income Tax Rate | 5.8% | 10.8% | -46.5% |
| Combined Sales Tax | 5.8% | 6.6% | -13.2% |
| Demographics | |||
| Population | 227,171 | 157,864 | +43.9% |
Source: U.S. Census Bureau ACS 5-Year Estimates (2022), Freddie Mac Primary Mortgage Market Survey. State/local tax rates from Tax Foundation (2024).
Rent vs. Buy Calculator — Richmond
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Rent vs. Buy Calculator — Paterson
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Key Takeaways
- Housing: The median home in Richmond costs $308,300 compared to $314,100 in Paterson — a 2% discount.
- Rent: Median rent is $1,227/mo in Richmond vs $1,392/mo in Paterson.
- Income: Median household income is $59,606 in Richmond and $52,092 in Paterson.
- Taxes: State income tax is 5.75% in Virginia vs 10.75% in New Jersey.
Methodology
This comparison uses data from the U.S. Census Bureau American Community Survey 5-Year Estimates (2022) for median household income, median home value, median gross rent, per capita income, and population. State and local tax rates are sourced from the Tax Foundation. Mortgage rates are from the Freddie Mac Primary Mortgage Market Survey (updated weekly).