New Jersey’s affordability crisis must be the top priority for our next governor

New Jersey has become unaffordable for far too many. Families and seniors are leaving, college graduates aren’t coming back, electric bills are soaring and businesses are struggling — and the next governor holds the power to change that. Over the past eight years, the state budget has risen nearly 70%, alongside steep increases in tolls, taxes, fares, insurance and electricity. Families are forced to choose between paying bills and buying groceries, while others leave for states with lower costs.

At Garden State Initiative, we provide an alternative voice and commonsense policy solutions to promote investment, job growth and opportunity for all residents. The next governor must tackle five urgent areas to make New Jersey affordable again.

1. Energy

This summer, utility bills jumped 20%, and prices will continue rising unless energy policy is overhauled. High energy costs inflate all goods and services, disproportionately affecting lower-income households and seniors on fixed incomes hardest.

Recommendation: Rebuild the state’s capacity to generate affordable energy using reliable, cost-effective sources like natural gas. Evaluate New Jersey’s energy portfolio based on affordability, reliability and sustainability and invest in small nuclear generation, which provides low-emission baseload power and long-term cost efficiency.

2. Housing affordability

Median home prices reached $608,000 in 2025, among the highest nationwide, while property taxes remain the nation’s steepest. Many families and young professionals are leaving the state.

Recommendation: Reduce regulatory red tape, grant municipalities broader development rights where infrastructure allows, and enforce time limits on permitting. These steps will expand housing supply and make living in New Jersey more attainable.

3. Transportation

NJ Transit is unreliable despite fare hikes, with one in 18 trains canceled or delayed by 15 minutes or more. South Jersey residents pay gas taxes and tolls but see limited benefits.

Recommendation: Whether NJ Transit remains a single agency or is split into separate north and south entities, the state must provide a dedicated, predictable funding stream. Reliable funding, fiscal discipline and timely upgrades are essential to ensure safe, efficient and equitable public transportation across the state, supporting both commuters and economic growth.

4. School funding

New Jersey spends the third most per student in the nation, yet the school funding formula remains opaque and unfair. Middle-class districts face unsustainable tax increases while urban districts receive disproportionate aid. Despite this significant spending, New Jersey students are struggling to reach pre-pandemic levels of academic achievement.

Recommendation: Reform the funding formula for transparency and fairness. Simplify assumptions, cap annual cost growth and stabilize local property tax requirements, making education costs predictable for families.

5. Fiscal responsibility

Spending far outpaces revenue, pressuring taxpayers and creating a structural budget deficit.

Recommendation: Present a balanced, multi-year budget that prioritizes core services, reduces wasteful spending, and reforms public employee pensions and health care programs for sustainability.

We can build a better New Jersey

New Jersey is a state with unmatched assets: beautiful beaches and mountains, thriving sports teams (Go, Devils!), a skilled workforce and key infrastructure such as the Port of Elizabeth, a dense network of highways and a central location midway along the East Coast with easy access to cross-country routes. Yet we’ve lost one-third of our Fortune 500 companies in 20 years, and residents are leaving, eroding our state’s momentum.

Energy costs, housing, transportation, schools and the state budget — these aren’t abstract issues. The next governor’s choices in these areas will shape daily life for every resident. We need leaders who will address these issues without hesitation and create opportunities for all New Jerseyans to thrive.

Audrey Lane is the president of Garden State Initiative. Lane served as a government policy and strategic messaging professional on both the municipal and state levels and served as an elected councilwoman in her home borough of Mountain Lakes. She is a graduate of Johns Hopkins University and was selected as a member of the American Enterprise Institute Leadership Network in 2021.