Why nearby are "candle" looking lights on the window of some houses contained by NJ and PA? Is it religious custom? ...

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It is done to "invite" The Lord into one's home.

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Speaking from personal experience here as a PA resident .... no specific religious custom I think on the candle lights. Holiday related, but no specific denomination.

My personal recollection is this started out as a Christmas/Holiday related entity about 10-15 years ago when folks started buying these candle lights and putting them in window so neighborhoods would look nice during the holidays.
I've seen some homes where on earth people move out them up all year round immediately.
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Answers:    Candles are used in religious customs for tons faiths including even wicca. It represents heaps different things.

I see these candles in abundant homes everywhere in the south so it's not purely a NJ or PA thing. I consider the religious significance is lost to the Christmas tradition. My wife puts these candles in our window because it's Christmas and it looks pretty. That's all.

There may be a principle for the tradition but I would bet 99% of the people doing it could not inform you what it is. The meaning have been lost. Now it's simply "pretty."