Philadelphia, PA vs. Cherry Hill, NJ: Cost of Living Comparison (2025)
When considering a move to the Philadelphia metropolitan area, many people find themselves weighing the pros and cons of living in Philadelphia proper versus nearby suburbs like Cherry Hill, New Jersey. While Cherry Hill offers more space and a quieter lifestyle, Philadelphia boasts urban amenities and a vibrant culture. But in 2025, with both housing markets and everyday expenses in flux, the central question for most relocating families and young professionals is: which city is more affordable?
A common myth is that living in the Philadelphia suburbs is always cheaper than living in the city itself. However, when you examine the details of housing, groceries, utilities, and other necessities, the cost comparison between Philadelphia and Cherry Hill becomes more nuanced. Let’s break down the key living expenses in each city and see where your budget may stretch further in 2025.
Housing Costs
In 2025, the median home price in Philadelphia is around $350,000 for a 3-bedroom single-family home, while Cherry Hill hovers closer to $450,000 for a similar property. Philadelphia’s overall housing costs tend to be 15-20% lower than Cherry Hill, but this gap narrows when comparing specific neighborhoods.
Rents in Philadelphia average about $1,800 per month for a 2-bedroom apartment, though prices climb above $2,200 in desirable areas like Rittenhouse Square and Fishtown. In Cherry Hill, 2-bedroom apartments typically rent for $1,600 to $2,000 monthly. Rental inventory tends to be tighter in Cherry Hill, while Philadelphia offers a wider selection.
| Housing | Philadelphia | Cherry Hill |
|---|---|---|
| Median Home Price (3BR) | $350,000 | $450,000 |
| Average Rent (2BR) | $1,800 | $1,800 |
For young professionals seeking city living, Philadelphia offers more affordable options close to jobs and nightlife. However, families looking to stretch their space and budget may find better value in Cherry Hill, especially if they don’t mind a longer commute. Ultimately, with a $100,000 difference in median home prices, Cherry Hill’s higher housing costs could be a deciding factor for budget-conscious buyers.
Housing Winner: Philadelphia. Lower home prices and a wider selection of rentals make Philadelphia more accessible for both buyers and renters.
Utilities and Energy Costs
Utility costs in Philadelphia and Cherry Hill are fairly comparable, with both cities seeing an average monthly energy bill around $160 for a 2-bedroom apartment. However, Philadelphia residents in older rowhomes often report higher heating and cooling costs due to less efficient HVAC systems and insulation. Newer construction in Cherry Hill tends to be more energy-efficient.
Both cities experience cold winters and hot summers, so budget an extra $40-50 per month for heat from November through March, and a similar amount for air conditioning from June through September. If you’re renting in either city, check whether your monthly rent includes any utilities to avoid surprise expenses.
Utilities Winner: Cherry Hill. Slightly lower energy bills and more efficient housing give Cherry Hill a small advantage.
Groceries and Daily Expenses
When it comes to feeding your family or stocking up on daily essentials, Philadelphia and Cherry Hill are neck-and-neck. A gallon of milk costs around $3.50 in both cities, while a dozen eggs average $2.50. However, Philadelphia boasts a wider variety of grocery stores, from discount chains like Aldi to upscale markets like Whole Foods, making it easier to find deals and compare prices.
Eating out is also comparable between the two cities, with a basic meal for two costing around $50 at a mid-range restaurant. However, Philadelphia’s vibrant food scene means you’ll have endless cuisine options to fit any craving or budget, from cheap eats to fine dining. Cherry Hill has solid restaurant choices but can’t quite compete with the depth and diversity of Philadelphia’s offerings.
Groceries Winner: Philadelphia. While grocery staples are similarly priced, Philadelphia offers more store variety and dining options for every budget.
Taxes and Fees
One key difference between Philadelphia and Cherry Hill is the tax landscape. Philadelphia has a city wage tax of 3.8712% for residents, on top of the state’s 3.07% income tax. New Jersey has a higher state income tax that ranges from 1.4% to 10.75% depending on your bracket. So while Cherry Hill residents avoid a city wage tax, they may face a bigger state tax burden, especially in higher income brackets.
In terms of property taxes, Cherry Hill’s effective rate is 2.49%, while Philadelphia’s is 0.99%. For a home assessed at $350,000, that’s an annual tax bill of $8,715 in Cherry Hill versus $3,465 in Philadelphia. However, Philadelphia does have higher transfer taxes (4.278% vs 1.21%) that can add upfront costs for buyers.
Both cities charge a 6% sales tax on most goods, and restaurant meals are taxed at 6.5% in Cherry Hill and 8% in Philadelphia. Parking and car ownership fees are also pricier in Philadelphia. At the end of the day, most people will pay less in overall taxes living in Philadelphia, unless they fall into New Jersey’s higher income tax brackets.
Taxes Winner: Philadelphia. The lack of a city wage tax and lower property taxes in Philadelphia result in a smaller overall tax burden for most residents compared to Cherry Hill.
Cost Summary Table
| Category | Philadelphia | Cherry Hill |
|---|---|---|
| Housing (Monthly, 2BR Apartment) | $1,800 | $1,800 |
| Utilities (Monthly) | $160 | $150 |
| Groceries (Monthly) | $400 | $425 |
| Transportation (Monthly) | $100 | $80 |
| Taxes (Annual, $60K Income) | $5,850 | $6,600 |
| Estimated Monthly Total | $3,050 | $3,300 |
Estimates reflect 2025 costs for a mid-size household (2-bedroom apartment) using published national data and regional benchmarks. Actual expenses will vary with household size, lifestyle, and neighborhood.
Based on these estimates, a typical household could expect to spend around $250 less per month living in Philadelphia compared to Cherry Hill. Over the course of a year, that adds up to $3,000 in potential savings. Keep in mind these are averages across each city. Depending on your specific neighborhood, housing type, and lifestyle, you may find pockets of affordability in either location.
Lifestyle Fit
For many people, choosing between Philadelphia and Cherry Hill is as much about lifestyle as it is about cost. Philadelphia offers a true urban experience, with walkable neighborhoods, public transit, and an endless array of cultural attractions, from world-class museums to historic sites. The tradeoff is dealing with issues like limited parking, higher crime rates in certain areas, and a faster pace of life.
Cherry Hill, on the other hand, provides a more suburban environment, with larger homes, better public schools, and a tight-knit community feel. Many families are drawn to the extra space and quiet atmosphere of Cherry Hill. However, you’ll likely need a car to get around, and commuting into Philadelphia for work can eat up time and gas money.
From a cost perspective, certain lifestyle factors can shift the balance. For example, if you work in Philadelphia and live in Cherry Hill, you’ll pay a 3.4481% non-resident wage tax, which can take a big chunk out of your paycheck. You’ll also spend more on gas and vehicle wear-and-tear. On the flip side, if you have kids, the cheaper daycare and free public school options in Cherry Hill can help offset the higher housing costs compared to Philadelphia.
Frequently Asked Questions
Is Philadelphia more affordable than Cherry Hill in 2025?
On average, living in Philadelphia is about 10-15% cheaper than living in Cherry Hill as of 2025. The biggest cost differences are in housing, taxes, and transportation, which tend to be lower in Philadelphia.
Are rental prices lower in Philadelphia or Cherry Hill?
Rental prices are comparable between the two cities, with a typical 2-bedroom apartment going for around $1,800 per month. However, Philadelphia offers a wider selection of rentals and more pricing tiers.
How do grocery costs compare between Philadelphia and Cherry Hill?
Grocery staples like milk, bread, and eggs cost about the same in both cities. However, Philadelphia has a greater variety of store options, from discount grocers to specialty markets.
Are property taxes higher in Cherry Hill than in Philadelphia?
Yes, Cherry Hill’s effective property tax rate is 2.49%, more than double Philadelphia’s 0.99% rate. For a $350,000 home, that means an annual tax bill of $8,715 in Cherry Hill versus $3,465 in Philadelphia.
What is the average monthly cost of living for a family of four in Philadelphia vs. Cherry Hill?
For a family of four, the average monthly cost of living is around $4,500 in Philadelphia and $5,000 in Cherry Hill. This assumes a 3-bedroom home, two cars, and a moderate lifestyle budget.
Conclusion
So, is it cheaper to live in Philadelphia or Cherry Hill in 2025? The answer depends on your specific housing needs, income level, and lifestyle priorities. Philadelphia comes out ahead in terms of sheer affordability, with lower home prices, a better selection of rentals, and an overall lower tax burden. The city’s walkability and public transit access also make it possible to save on transportation costs.
However, for some people, the extra space, newer housing stock, and suburban comforts of Cherry Hill are worth the premium. Families with school-age children may find that Cherry Hill’s strong public schools and family-friendly neighborhoods offer a better long-term value. Ultimately, the right choice is the one that fits your budget and your vision for life in the Philadelphia metro area. By planning out your monthly expenses and comparing moving options, you can make an informed decision on where to call home.