The Cost Of Living In New Jersey's Most Expensive Suburb Will Make You Pause

Retirement budgets have been tenuous this year. To match increased costs, the Social Security Administration (SSA) increased the cost‑of‑living adjustment (COLA) in 2025 by 2.5% — roughly $50 extra per month for the average recipient. That will certainly relieve straps on groceries, prescription medicines, and other utilities for many, but it's not quite a cure.

But in a 2025 report by The Senior Citizens League (TSCL), 72% of over 3,000 interviewed seniors expressed the view that Congress must alter the COLA formula to better reflect their costs. Meanwhile, 70% feared that chronic inflation would require higher expenditures that would eradicate retirement savings funds and other assets. The squeeze hurts the most in America's toniest suburbs, where living comfortably exceeds the six-figure threshold.

Tenafly, New Jersey, is too perfect for the mold, standing as a picturesque postcard of how precipitous life is in America's richest suburbs. Tenafly placed No. 26 on the 2025 list of America's richest suburbs compiled by GoBankingRates, with an average household salary in 2023 of $306,103 according to 2023 Census data. The history of Tenafly traces back to the late 1600s with the earliest settlers being the Dutch. The area became incorporated in the year 1894, and the swanky neighborhood has had quite a reputation ever since.

The cost of living in Tenafly is penny-pinching in almost all areas. Based on AreaVibes, which used data provided by the Council for Community and Economic Research (C2ER), the overall cost-of-living index in Tenafly in 2023 stood at 209, 109% higher than the national average of 100. In other words, daily life in this place costs double what the majority of Americans endure. Housing contributes the heaviest burden. As of September 2025, the average home value in Tenafly is $1.2 million, according to Zillow, while the national average sits at approximately $363,932 for the same time period.

Renters fare no better. According to BestPlaces, a typical two-bedroom rental in 2025 cost $2,670 per month on average, which was 86.7% higher than the national average rent of $1,430. Property taxes also add prohibitions. Ownwell records an average property tax bill of $18,167 with an effective rate of 2.71%. Since the national average is approximately 1.02%, this is yet another situation where living in Tenafly costs over double what the average American needs to live.

Aside from housing costs, the daily items add up fast. Grocery prices in PayScale averaged 6% higher than the national average in 2024. Healthcare costs often get short attention but can devour retirement budgets. Meanwhile, AreaVibes reports doctor visits in Tenafly averaged $162.24, over $20 higher than the national average. With rates like these, it's no surprise senior residents have to budget painstakingly every month.

Tenafly's high cost feels a little easier to swallow when you step outside. Life there leans into nature and community — aligning with retirement lifestyle profiles that drive savings success. Over seven miles of hiking trails cut through the Tenafly Nature Center. It's open all year, spread across almost 400 acres of protected woods. People walk, watch birds, and move their bodies while taking in the stellar scenery. The Senior Center keeps things going for residents 55 and older, offering more than eighteen weekly exercise options like yoga, Pilates, Tai Chi, and even self-defense. It's not just about fitness, either. There are art classes, games, book clubs, dancing, movie nights, and discussion groups all built for the senior crowd.

Tenafly also offers picturesque recreational parks such as the Davis Johnson Park & Gardens, where you can enjoy a family celebration or a quiet afternoon with a book in the peaceful green surroundings. Those looking to stay active can be part of programs such as the Walking Club, tennis lessons, and yoga, many of which are organized by the Tenafly Recreation Department. Finally, the town's crime record really seals the deal. Based on the report by AreaVibes, Tenafly is one of the safest places in the nation, recording just 26 violent crimes in every 100,000 people in 2023. That's 93% lower than the national average of 364. For retirees and young familes, that sort of serenity goes a long way.