Milltown's housing is predominantly modest single-family homes on small to medium lots, reflecting its origins as a mill community and its compact 1.6-square-mile borough footprint. The stock includes older homes from the early 20th century alongside mid-century and newer construction, with a limited share of multi-family housing. The borough's affordability and walkability are frequently cited as reasons residents choose it, particularly compared with nearby East Brunswick and North Brunswick. Demand is steady from families drawn to the small-town character and the send-receive school arrangement, and inventory remains limited in this established, close-knit community.

Milltown's neighborhoods are arranged around Lawrence Brook, which divides the borough from east to west, and the small downtown along its main streets. Residential blocks of older and mid-century single-family homes spread from the center, with parks, the Milltown schools, and the brook woven through the community. The borough's small size means most neighborhoods are within walking distance of the downtown and local amenities. Homes are generally well maintained, with mature trees and a settled, neighborly character, and the surrounding townships of East Brunswick and North Brunswick frame the borough on either side.

Milltown offers the feel of a small town embedded in central New Jersey's suburban landscape. Its quiet downtown has only a few local businesses, and residents describe the borough as safe, family-oriented, and friendly, with neighbors who know one another. The compact footprint makes much of town walkable, and Lawrence Brook adds a natural feature through the center of the community. The borough's affordability relative to surrounding municipalities is a recurring draw, as is its location between East and North Brunswick and its short distance to New Brunswick, Rutgers University, and the region's employment and cultural amenities.

Milltown is served by the Milltown Public Schools, a two-school district enrolling roughly 800 students in grades Pre-K through 8. The district's small size allows for a close relationship between the schools and the community. For high school, Milltown students attend Spotswood High School through a send-receive agreement with the Spotswood Public Schools, a long-standing arrangement in which Milltown students make up a notable share of the receiving district's enrollment. Rutgers University in nearby New Brunswick provides higher education, and the borough's location in Middlesex County places additional colleges and career-training resources within easy reach.

Milltown is well positioned within central New Jersey's transportation network. The borough lies near Route 1 and Route 18, two major Middlesex County corridors, and is a short drive from the New Jersey Turnpike. New Brunswick's train station, on NJ Transit's Northeast Corridor with direct service to New York and Trenton, is nearby, and Rutgers University's New Brunswick campus is just minutes away. This access makes Milltown practical for commuters to both New Brunswick and the larger New York metropolitan area, while the borough's own quiet streets remain removed from the region's busiest highways.

Recreation in Milltown centers on Lawrence Brook and the borough's local parks, which offer green space, playgrounds, and gathering spots for residents. The brook's course through the center of town adds a natural corridor for walking and outdoor enjoyment, and residents note the borough's appeal to outdoor enthusiasts. Community events and school activities anchor the local calendar. Nearby New Brunswick and Rutgers University provide extensive cultural, sports, and recreational opportunities, while Middlesex County's park system and the larger Raritan Valley open space network offer trails and preserves within a short drive.