Hoboken generally has a higher cost of living than Jersey City, primarily due to housing. Rent for a comparable apartment in Hoboken is often more expensive than the city-wide average for Jersey City. The real story, however, is about neighborhoods.
Jersey City's waterfront areas, such as Newport, Exchange Place, and Paulus Hook, feature rents and property prices that are directly competitive with, and can even surpass, those in Hoboken. The significant cost savings in Jersey City emerge when you look at neighborhoods further from the Hudson River, like The Heights or Journal Square.
When it comes to daily expenses like groceries, transportation, and dining out, the two cities are very similar. The price of a meal or your weekly shopping bill won't differ dramatically. The choice really boils down to housing: Hoboken offers a consistently expensive, highly walkable square mile, while Jersey City provides a wider spectrum of price points depending on how close you want to live to the water and the PATH train.