Passaic's housing market is dominated by dense, multifamily and rental housing, reflecting its urban character — a majority of residents rent rather than own. The stock includes a mix of older single-family and two-family homes, many of them well-maintained historic houses in styles such as Dutch Colonial and Tudor, alongside apartment buildings and converted multi-unit properties. The city's 3.25-square-mile footprint keeps housing compact and transit-adjacent, and its relative affordability compared with nearby Hudson County and Bergen County communities is a key draw. Buyers and renters here are typically seeking proximity to transit, urban amenities, and cultural diversity rather than suburban space.

Passaic is organized into wards — the First, Second, Third, and Fourth — which function as its principal neighborhood units. The First, Second, and Fourth wards are among the most densely built, with a mix of multifamily housing, older homes, and active commercial corridors. The Third Ward, centered on the historic Third Ward Park, developed later and is known for its more residential, tree-lined character and the neighborhood now commonly called Passaic Park. The city's commercial life is distributed along its main avenues, and the proximity of the Passaic River frames the eastern edge. Neighborhoods are walkable, connected, and shaped by the city's layered immigrant and industrial history.

Passaic offers a dense, walkable, and culturally rich urban lifestyle. The city's diversity is its defining trait, expressed in a wide range of restaurants, bakeries, markets, and shops serving communities with roots across Latin America and beyond. Daily life is convenient and transit-oriented, with residents able to walk to commerce, schools, and parks. Third Ward Park provides a green refuge with its pond, lawns, and cherry blossoms, and the city's park system offers recreation within a short walk of most homes. The pace is energetic and neighborhood-based, and residents benefit from the dining, nightlife, and employment of the broader New York metropolitan area just across the river.

Public education in Passaic is provided by the Passaic Public Schools, a district that operates fourteen schools serving the city's students from elementary through high school. The district is a central civic institution in a dense, diverse community, and it serves a large student population reflective of the city's demographics. In addition to the public system, the city offers private and parochial school options. The district's schools are distributed across the city's wards, and families typically confirm school assignments through the district. Passaic's location also places a wide range of higher-education institutions, including those in nearby Newark and New York City, within easy reach.

Passaic is exceptionally well connected to the New York metropolitan region. NJ Transit operates the city's commuter rail station on the Main Line, providing direct service into Hoboken and, with a transfer at Secaucus Junction, into New York's Penn Station — one of the principal reasons for the city's appeal to commuters. Extensive NJ Transit bus service connects Passaic to surrounding towns and to the Port Authority Bus Terminal in Manhattan. Major roadways, including Route 21 along the Passaic River and Route 3 nearby, link the city to the regional highway network. Within the city, the compact street grid is highly walkable, and many errands can be accomplished on foot or by transit.

Recreation in Passaic centers on its parks and the Passaic River corridor. Third Ward Park is the city's signature green space, with rolling lawns, mature trees, a pond, and a celebrated display of cherry blossoms each spring. The city maintains more than a square mile of parkland within its compact boundaries, providing playgrounds, athletic fields, and gathering spaces close to residential neighborhoods. The Passaic River and nearby county and regional parks offer additional outdoor opportunities. For larger recreational destinations, residents are within reach of the Meadowlands and its sports venues, as well as the parks of Bergen and Passaic counties, while New York City's attractions lie a short transit ride away.