NEWPORT – City officials are trying to raise capital to fund over $500 million in needed infrastructure and capital improvements over the next five years, but a county-wide real estate professionals group warned against a recent proposal from the City Council to levy a tax on property sales of more than $2 million, as it might prevent local homeowners looking to sell from doing so.
“Our average price in Newport is about $800,000 and that does not get you much,” Newport County Board of Realtors President Sandi Warner said. “Two million is not a mansion. Two million is just a house.”
The City Council is considering asking its legislative delegation to submit a bill that would allow the city to impose a 3% tax on real estate sales over $2 million, which city administration believes would generate between $4 million and $5 million annually that could be put into a restricted, interest-bearing Resilience and Sustainability Fund.
The proposal received pushback when it was first discussed at a February City Council meeting, leading the council to continue the discussion to this upcoming meeting on March 13. Warner said taxes like these will chill real estate in Newport, which has been in an odd spot recently following the hot sellers market of the past two years.
“It’s an unusual market,” Warner said. “If you have a nice home and you are well-priced, you will probably get two or three offers on it. If you are throwing a number up on the wall just to see if it will stick, the buyers have been in the marketplace for longer now and they are very educated. They are not willing to pay these wild numbers that we did see two or three years ago.”
‘Mansion tax’ in use in other cities
Warner said the type of tax the city is proposing is typically referred to as a mansion tax, as it is a progressive tax on property sales over a certain sum. A handful of states have such a tax in place, but at different thresholds and with different rates. Connecticut’s legislature passed a bill in 2019 imposing a 2.25% conveyance fee on home sales above $2.5 million. New York home sellers have been paying a progressive tax on real estate transactions higher than $1 million since 1989.
In Los Angeles, 58% of residents approved Measure ULA, a 4% transfer fee on estate transactions over $5 million that increases to 5.5% on properties over $10 million, during the 2022 election. The abbreviation stands for “United to House L.A.,” and was established to fund affordable housing projects and provide resources for residents at risk of homelessness. Since then, multiple lawsuits have been filed to argue against the tax, one of which a Superior court judged recently dismissed.
Although the Newport County Board of Realtors has only discussed the issue briefly, Warner said the main concern is the $2 million threshold. Of the 282 properties sold in Newport over the past year, Warner said 10%, or 30 properties, were sold for more than $2 million. This includes single-family homes, multi-family homes, commercial properties and vacant land sales.
Additionally, 455 properties in Newport that were previously assessed as being worth under $2 million are now over that threshold following the most recent reassessment.
“It’s unprecedented the amount of equity that homeowners have in their home in Newport right now,” Warner said. “That’s money that they have. If they decided to sell their home, that could fund an early retirement. That could fund moving out of state. That could fund college educations. There’s a plus side to it. The downside is it is out of reach to purchase in Newport for many locals.”
Other options and a possible battle
Warner suggested a better solution might be to levy a smaller real estate conveyance tax on a wider range of property types. For example, Little Compton’s Agricultural Conservancy Trust is primarily funded through a 4% real estate transfer tax on property sales over $300,000.
If the City Council plans to pass the proposed legislation onto its delegates at the State House, Warner said she expects the statewide RI Association of Realtors to fight it. The association has three active lobbyists working at the State House currently as well as a political action committee, the Realtors PAC of RI, which has contributed campaign funds to Rep. Marvin Abney and Sens. Dawn Euer and Lou DiPalma, all of which are members of the city’s delegation, between 2020 and 2023.
As a trade organization, Warner said the Board will continue to advocate for its industry. However, as a member of the Newport community, she said she sympathizes with the council as it grapples with funding all of its needed infrastructure improvements.
“Nobody wants to be taxed, but… we’re being told is that there is an infrastructure need north of $500 million, and this expense is, I thought well described by Councilor Aramli, not to make Newport shining and new, this is to keep Newport going,” Warner said. “Nobody doesn’t want to pay taxes, we don’t want to see real estate slow down, but how do we raise this money? I don’t know…At some point, we’re going to all have to come together and figure out how to do this.”
New England, with its picturesque landscapes, rich colonial history, charming small towns, and vibrant urban centers like Boston and Providence, has a unique blend of old-world charm and modern skyscrapers. From the breathtaking autumn leaves to the serene coastal cities, New England has a charm like no other.
The median home sale price is $577,400 in Massachusetts, $452,200 in Rhode Island, $380,400 in Connecticut, and $440,300 in New Hampshire. Therefore, the average median home sale price across these states is $462,575. If you’re contemplating a move to New England while staying under those prices, you’re in luck. Redfin has gathered 10 of the most affordable places to live in New England. Keep reading to discover which cities made the list.
1. Waterbury, CT
Median home price: $242,500
Average sale price per square foot: $166
Average rent for a 1-bedroom apartment: $1,000
Median household income: $51,451
Waterbury, CT homes for sale
Waterbury, CT apartments for rent
The first city to make our list of the most affordable places to live in New England is Waterbury, CT. With a median home sale price of $242,500, Waterbury is a great area to consider moving to this year. The city has a population of roughly 114,400 and is known for its beautiful parks, historic places, and attractions like the Mattatuck Museum, Bucks Hill Park, and the Palace Theater.
2. Springfield, MA
Median home price: $278,500
Average sale price per square foot: $179
Average rent for a 1-bedroom apartment: $1,249
Median household income: $47,677
Springfield, MA homes for sale
Springfield, MA apartments for rent
Located in western Massachusetts, Springfield takes the second spot on our list. The city has a median home sale price of $278,500 and about 155,900 residents. You’ll find there are a variety of things to do in Springfield. For example, you can discover the exhibits at the Springfield Museums, enjoy the outdoors at Forest Park, explore the Dr. Seuss National Memorial Sculpture Garden, or check out the vibrant dining and entertainment scene in the downtown area.
3. Hartford, CT
Median home price: $285,000
Average sale price per square foot: $117
Average rent for a 1-bedroom apartment: $1,413
Median household income: $41,841
Hartford, CT homes for sale
Hartford, CT apartments for rent
With a median home sale price of $285,000 and a population of 121,100, Hartford, CT, is the third most affordable place to live in New England. As Connecticut’s capital, there are numerous historic sites, local shops, and neighborhoods to explore. Make sure to stop by the Mark Twain House & Museum, the Wadsworth Atheneum Museum of Art, and the Harriet Beecher Stowe Center, explore Bushnell Park or Elizabeth Park Rose Garden, and stroll through the West End or Downtown neighborhoods.
4. Bridgeport, CT
Median home price: $308,000
Average sale price per square foot: $194
Average rent for a 1-bedroom apartment: $1,050
Median household income: $54,440
Bridgeport, CT homes for sale
Bridgeport, CT apartments for rent
Another great affordable city to consider moving to is Bridgeport, CT. Home to roughly 148,700 residents, this city can be an excellent option to add to your list. Living in Bridgeport, you can enjoy outdoor activities at Seaside Park or Beardsley Zoo, see a show at the Downtown Cabaret Theatre or the Klein Memorial Auditorium, or explore the Black Rock Harbor area.
5. New Haven, CT
Median home price: $322,500
Average sale price per square foot: $180
Average rent for a 1-bedroom apartment: $2,517
Median household income: $54,305
New Haven, CT homes for sale
New Haven, CT apartments for rent
The last city in Connecticut to make our list of affordable places to live in New England is New Haven. The median home sale price is $322,500, and it has a population of about 134,000. In New Haven, be sure to explore the historic Yale University campus, enjoy outdoor activities at East Rock Park or Lighthouse Point Park, check out the exhibits at Yale University Art Gallery or the Peabody Museum of Natural History, and have a meal at one of the restaurants along Chapel Street or in the historic Wooster Square neighborhood.
6. Warwick, RI
Median home price: $373,700
Average sale price per square foot: $257
Average rent for a 1-bedroom apartment: $1,546
Median household income: $81,009
Warwick, RI homes for sale
Warwick, RI apartments for rent
Another well-known city is Warwick, RI, where the median home sale price is about $373,700. Warwick has a population of roughly 82,800 and is a great area to consider moving to this year. Whether you’re discovering the history of the Warwick City Hall, enjoying outdoor activities at Rocky Point State Park or Goddard Memorial State Park, grabbing a meal along the waterfront, or experiencing the vibrant arts scene at the Warwick Center for the Arts, there’s something for everyone to enjoy in this charming city along Narragansett Bay.
7. Worcester, MA
Median home price: $400,000
Average sale price per square foot: $250
Average rent for a 1-bedroom apartment: $1,812
Median household income: $63,011
Worcester, MA homes for sale
Worcester, MA apartments for rent
Seventh on our list of affordable places to live in New England is Worcester, MA. With a population of about 206,500, this Massachusetts area is a great option for those looking for a mid-sized city. Worcester is home to many attractions like Worcester Art Museum, the EcoTarium, Green Hill Park, Elm Park, and the Hanover Theatre for the Performing Arts.
8. Pawtucket, RI
Median home price: $410,000
Average sale price per square foot: $209
Median household income: $62,799
Pawtucket, RI homes for sale
Pawtucket, RI apartments for rent
Another town to consider moving to is Pawtucket, RI. The area has a median home sale price of $410,000 and has a population of 75,600. In Pawtucket, make sure to visit the Slater Mill Historic Site, explore Slater Memorial Park or the Blackstone River Bikeway, check out the arts scene at the Pawtucket Arts Festival, or grab a meal at one of the local eateries and breweries.
9. Providence, RI
Median home price: $412,000
Average sale price per square foot: $221
Average rent for a 1-bedroom apartment: $1,975
Median household income: $61,365
Providence, RI homes for sale
Providence, RI apartments for rent
As Rhode Island’s capital, Providence has plenty to offer its residents. Home to about 190,900 people, you can check out some of the many historic spots in this affordable city. Make sure to explore the Brown University campus, check out the downtown area along the river, visit the expansive Roger Williams Park, and see a concert, Broadway show, or performance at Providence Performing Arts Center.
10. Manchester, NH
Median home price: $412,000
Average sale price per square foot: $254
Average rent for a 1-bedroom apartment: $1,920
Median household income: $74,040
Manchester, NH homes for sale
Manchester, NH apartments for rent
Last but not least on our list of most affordable places to live in New England is Manchester, NH. The area has a median home sale price of $412,000 and about 115,600 residents. In Manchester, there are countless attractions to explore. You can visit museums like the Millyard Museum and the Currier Museum of Art, enjoy the outdoors at Livingston Park or Massabesic Lake, see a show at the Palace Theatre, or explore charming downtown Manchester.
Methodology: All cities must have over 75,000 residents per the US Census and have a median home sale price under the average median list price in Massachusetts, Rhode Island, Connecticut, and New Hampshire. Median home sale price and median sale price per square foot from the Redfin Data Center during February 2024. Average rental data from Rent.com February 2024. Population and median household income data sourced from the United States Census Bureau.
- The median price of a single-family house in December was $427,000
- Competition is increasing for the few homes on the market
Over the weekend, real estate agent Jill Sweetman hosted three open houses.
Despite occurring on some of the coldest days of the winter so far, each open house pulled in 20 to 25 people, which came as a surprise.
“It was biting cold, it was miserable, and normally when the weather is terrible, no one comes out to see houses,” Sweetman said.
What Sweetman saw goes a long way to describe the current state of the housing market as the Rhode Island Association of Realtors released the housing sales data for December 2023.
In December, the median price of a single-family home dipped slightly to $427,000, down $4,000 from November. The median house price is up 10% from December 2022 and 50% from December 2019.
“People are getting desperate for houses again, because all these people braved temperatures in the teens to come and see these houses,” said Sweetman, who is with Nathan Clark and Associates.
In December, the number of houses listed on the market continued a downward slide, with 917, down from 1,152 in November. The number of houses sold fell from 569 in November to 532 in December.
When Sweetman checked the number of listings on Monday morning, the number of houses listed had sunk even lower, to 708.
What November’s market looked like:House prices and interest rates are down in Rhode Island, but does it really matter?
Interest rates keep sales depressed, lack of inventory keeps prices high
“We’re in a weird limbo area where sellers aren’t putting their homes onto the market, and for buyers there are no homes, so when there is a really good house, people are competing for it, even though interest rates aren’t fantastic,” Sweetman said.
Interest rates have been climbing, mostly, since record lows in 2021 and 2022, dropping below 3%, peaking at 7.8% in October 2023 and then easing back down to 6.6% as of Jan. 18, according to data from the mortgage lender Freddie Mac.
Higher interest rates normally depress prices as demand slows, but when there is little supply, prices stay the same or barely decrease.
“This is like it was at the start of 2022, when there were like 680 single-family homes on the market,” Sweetman said. “It seems like we’re getting back to that.”
With the market so tight, prices so high and increased mortgage rates reducing buying power, Sweetman said, it’s difficult to make offers stand out, and it isn’t always the highest bidder that wins. Often, it’s the person who offers the smoothest or most secure house sale.
Sweetman recently helped her clients buy a house that was being sold by the former owner’s estate, including all of the furniture, knick-knacks, all of the things that accumulate over a lifetime. To win the bid, they offered to take the house as-is and deal with cleaning out the stuff themselves.
“Junk removal costs $1,000 to $1,500. They take everything out of the old house and you’ve spent $1,500 and were picked over five other people – versus tacking $50,000 on to a mortgage,” Sweetman said.
What the multi-family markets look like
While single-family homes get most of the attention and make up most of the housing stock, condos and multi-family homes are hot commodities.
The median price of a multi-family house dipped slightly to $480,000 in December, down from $492,000 in November and $482,000 in October, but still below the all-time high of $500,000 in June and July 2023.
The number of listings was down slightly in December to 214, from 220 in November.
Multi-family house prices have seen the biggest percentage increase since the pandemic, with December’s median price 68% higher than it was in December 2019. Multi-family houses have been relatively quick to sell, with an average of 23 days on the market for the last three months of 2023.
In all, there were 214 multi-family listings in December, which has dropped to 176 as of this week.
What the RI condo market looks like
With condos, the median price was up slightly, to $360,000, up $3,500 over November. The cost of condos is up 60% compared with December 2019.
Condos are spending longer on the market, 37 days in December compared to 27 days in November. The number of condos listed on the market decreased slightly to 214 in December. As of this week, it’s even lower, at 197.
Houses priced correctly will bring lines, competing offers
When a house is right in that sweet spot, near the new median price, $350,000 to $450,000, appears to be worth it and is in decent shape, it will go fast and there will be competing offers, Sweetman said.
For her buyers, that means going to the first open house scheduled, even if it’s a bitterly cold weeknight, and either offering more than the asking price or figuring out what the seller wants and making that part of the offer.
“Sometimes it’s offering nice terms to a seller, like you’re willing to pay some of their closing costs,” Sweetman said. “Again, it’s a nice way to spend a small amount of money and get a big result.”
While some sellers want top dollar, others just want to move on.
“A smooth transaction where nothing falls apart is often worth more than an extra $20,000,” Sweetman said.
Onslaught of natural disasters affects buyers and sellers
The recent bouts of flooding and tornado-inducing storms have been hitting many of Sweetman’s would-be buyers and sellers.
One couple who own a multi-family house and was looking to move into a single-family is spending the money they had saved for a down payment replacing a roof after it was torn off during a recent wind storm.
RI’s September floods were a disaster.What help is available for victims?
Others are calling Sweetman to ask what to do as their basements flood for the first time since they’ve owned the houses they are now looking to sell.
“They’re spending all their money on mitigation,” she said. “It’s like a perfect storm.”
South County and Newport housing numbers
In Newport County, a total of 41 houses were sold in December, 7% of the total for the state. Jamestown, with six sales, saw the biggest swing in median price over last year, hitting $1.6 million across those six sales, compared with $725,000 across seven sales in December 2022.
Jamestown had the highest median price in the entire state, followed by Block Island, where one house sold for $1.3 million, and then Newport, with $1.1 million over six sales.
Little Compton saw the biggest decrease in single-family home sales, from five in December 2022 to none last month, followed by Newport, down to six last month compared with 16 a year ago. Little Compton was the only municipality in the state to register no sales last month, while Block Island and Hopkinton both registered a single sale.
Portsmouth was the only town in Newport County to see an increase in sales, 14, two more than in November.
Tiverton was the most affordable Newport County town, with a median price of $448,000 across 11 sales, down from 14 a year ago. The median price in Tiverton was up 23% from $357,000.
Thanks to our subscribers, who help make this coverage possible. If you are not a subscriber, please consider supporting quality local journalism with a Providence Journal subscription. Here’s our latest offer.
Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.
- The state median single-family price is up 49% since the pandemic began
PROVIDENCE − Providence will be the fifth-hottest housing market in the country in 2024, according to real estate listing site Zillow.
Zillow’s report puts Providence’s housing market just below Buffalo, New York; Cincinnati, Ohio; Columbus, Ohio and Indianapolis, Indiana.
The report looked at the top 50 metropolitan areas by population and used calculations for forecast home value appreciation, number of days a house was listed, building permits, projected changes in the labor market and the number of owner-occupied houses.
“2024’s hottest markets all boast solid economic fundamentals, relatively fast-moving for-sale housing inventory, plentiful likely buyers and expectations for stable home values,” report author Anushna Parkash wrote.
November’s housing numbers:House prices and interest rates are down in Rhode Island, but does it really matter?
Little supply, with the number of homes on the market at multi-year lows, helps define a hot market, along with the speed at which homes sell.
“It’s likely that these low inventory markets, in which buyers had the hardest time finding a home and homes generally sold very quickly in 2023, will continue to experience outsized demand (relative to supply) in 2024, compared to other markets,” she wrote.
Why was Providence ranked as one of the ‘hottest’ markets?
In Providence in November, the 45 single-family houses that sold were on the market for an average of 20 days, down from 27 days a year earlier. That held consistent with sales in the third quarter, when the number of days a house was on the market averaged 21 across 162 sales.
Across Rhode Island in the third quarter, 569 single-family houses sold, with Providence accounting for 29% of those sales.
More:What were the most expensive homes sold in Rhode Island in 2023?
Unlike the rest of the state, in Providence, the number of multi-family home sales in the third quarter came close to the number of single-family home sales, at 134. Just like the single-family counterparts, they spent an average of 21 days on the market. Providence accounted for 33% of the multi-family sales in the state during that time.
Condos in Providence stayed on the market longer, an average 32 days for 89 sales in the third quarter.
In November, there were 1,152 single-family homes listed for sale in Rhode Island, compared with 2,984 in November 2019.
Providence home prices
While Rhode Island’s median single-family house price in November was $431,000, it was lower in Providence, at $380,000. However, multi-family houses make up a big proportion of house sales in the capital city, and their prices are much, much higher.
Third-quarter data is used below because town-by-town listings are not readily available for condos and multi-family buildings.
Providence median house prices
- Providence single family, 3rd quarter: $370,000
- State single family, 3rd quarter: $450,000
- Providence multi-family, 3rd quarter: $528,500
- State multi-family, 3rd quarter: $485,500
- Providence condo, 3rd quarter: $379,900
- State condo, 3rd quarter: $379,000
What’s driving demand in the hot markets?
Baby boomers are not moving out of their big homes at the same time that millennials, now in their 30s and 40s, are in their “prime home buying years,” Parkash wrote.
Baby boomers staying in their homes, or buying additional homes, is a big change from previous generations. The median age of all homebuyers is now 49, up from 31 in 1981, and the first-time homebuyer median age is 35, up from 29 in 1981.
Interest rates have increased significantly, hitting a high of 7.76% in late October, and coming down slowly since. Normally, high interest rates bring down prices by cutting into demand, but the lack of inventory has been keeping prices up.
The pre-pandemic November 2019 median price of a single-family house was $290,000. Prices have since risen 49%.
Interested in the housing market? See the rest of our coverage
If you’re interested in a deeper dive into the housing market, read our insights on the November housing data, and how buyers are becoming pickier as prices refuse to come down.
If income-restricted housing is your thing, consider our story on the case of the brand new $299,000 condos in Pawtucket and why it appears they’re so hard to sell.
If you’re interested in the top of the market, see our story on the most expensive homes sold in 2023, with a mansion on a bluff topping the list, but well below its $25-million asking price.
A condo was the third most expensive residence sold in the state in 2023, at an exclusive sporting community in Richmond, followed by a penthouse in a new condo building. See all the most expensive condos sold in 2023.
Thanks to our subscribers, who help make this coverage possible. If you are not a subscriber, please consider supporting quality local journalism with a Providence Journal subscription. Here’s our latest offer.
Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.
The smallest state in the US, Rhode Island, has no shortage of reasons to consider moving there. With charming small towns along the coast, historic cities like Providence, the state’s maritime heritage, historic mansions, and beautiful islands, there’s much to love about Rhode Island. If Rhode Island sounds like the state for you, then you may also be curious about what cities fit into your budget. When it comes to buying a home in Rhode Island the median home sale price is $469,400.
If that price is out of your budget, don’t worry. We’ve got options to help you find a home. Redfin has rounded up a list of the 12 of the most affordable places to live in Rhode Island – and they all have a median home sale price under the state’s average. From West Warwick to Westerly, read on to see what cities you may want to consider moving to.
#1: West Warwick
Median home price: $345,000
Average sale price per square foot: $240
Median household income: $62,649
Nearest major metro: Providence (10 miles)
West Warwick, RI homes for sale
West Warwick, RI apartments for rent
With a median home sale price of $345,000, West Warwick lands the number one spot on our list as the most affordable place to live in Rhode Island. There are about 31,000 residents living in this mid-sized city, located about 10 miles south of Providence. If you’re considering moving to this area make sure to check out the Matteson Pond Recreation Area, explore the Arctic neighborhood, and golf at one of the clubs.
#2: Woonsocket
Median home price: $365,000
Average sale price per square foot: $199
Average rent for a 1-bedroom apartment: $900
Median household income: $44,310
Nearest major metro: Providence (15 miles)
Woonsocket, RI homes for sale
Woonsocket, RI apartments for rent
Taking second place on our list of affordable cities to live in Rhode Island is Woonsocket. When living in this city of 43,200 people, you can visit one of the museums like the Museum of Work & Culture, sites like the Polar Express Station, see a show at the Stadium Theatre, and check out one of the parks like Cass Park.
#3: Pawtucket
Median home price: $375,000
Average sale price per square foot: $188
Average rent for a 1-bedroom apartment: $1,750
Median household income: $52,902
Nearest major metro: Providence (5 miles)
Pawtucket, RI homes for sale
Pawtucket, RI apartments for rent
Third is Pawtucket where about 75,600 residents currently live. The median home sale price is $375,000 which is about $95K less than the median home sale price in Rhode Island. If you find yourself moving to the third most affordable place in Rhode Island, check out one of the parks like Slater Memorial Park or Ten Mile River, stop by the Old Slater Mill National Historic Landmark, and visit the downtown area.
#4: Coventry
Median home price: $375,000
Average sale price per square foot: $225
Median household income: $44,310
Nearest major metro: Providence (15 miles)
Coventry, RI homes for sale
Coventry, RI apartments for rent
A little more expensive than Pawtucket is the city of Coventry. There are several top attractions you may want to check out in Coventry. Make sure to explore the nature preserves like Audubon George Parker Woodland Wildlife Refuge, Audubon Maxwell Mays Wildlife Refuge, or Tillinghast Pond Management Area, take a camping trip, or fish at Tiogue Lake.
#5: Cranston
Median home price: $387,000
Average sale price per square foot: $224
Average rent for a 1-bedroom apartment: $1,360
Median household income: $44,310
Nearest major metro: Providence (5 miles)
Cranston, RI homes for sale
Cranston, RI apartments for rent
Another great area to add to your list is Cranston. With 82,900 residents, moving to this affordable city gives you the perks of city-life without living in a major metropolitan area. Living in Cranston, you can check out all the local restaurants in the heart of the city, and visit some of the parks like Pawtuxet Oboes Park and John L. Curran State Park.
#6: North Providence
Median home price: $392,500
Average sale price per square foot: $217
Median household income: $63,158
Nearest major metro: Providence (5 miles)
North Providence, RI homes for sale
North Providence, RI apartments for rent
Another noteworthy city is North Providence, where you’ll find the home prices are about $75K less than the state’s average. North Providence has about 34,100 residents and is a great city to consider living in this year. Whether you visit Governor John Notte Memorial Park along the Wenscott Reservoir, grab a meal at one of the stellar local restaurants, and golf at one of the courses, there are many activities to do and see in this city.
#7: Warwick
Median home price: $395,000
Average sale price per square foot: $255
Average rent for a 1-bedroom apartment: $1,622
Median household income: $73,285
Nearest major metro: Providence (10 miles)
Warwick, RI homes for sale
Warwick, RI apartments for rent
Claiming the seventh spot on our list of affordable places to live in Rhode Island is Warwick. With a population of about 82,800, you’ll be living in a mid-sized city, but there is no shortage of things to do in Warwick. Don’t miss out on enjoying nature at the waterfront spots like Rocky Point State Park, Buttonwoods Beach, or Conimicut Point Park, having a meal by the water, or checking out some of the other amazing local restaurants and shops in town once moving here.
#8: Johnston
Median home price: $400,000
Average sale price per square foot: $238
Median household income: $75,579
Nearest major metro: Providence (5 miles)
Johnston, RI homes for sale
Johnston, RI apartments for rent
If you’ve been living in Rhode Island for some time, you probably know Johnston. About 29,600 people live in Johnston, just 5 miles west of Providence. Once moving to Johnston you’ll want to explore the trails at the expansive Snake Den State Park where you’ll also find the Wicked Tulips Farm, and check out the shops and restaurants along Atwood Ave.
#9: East Providence
Median home price: $422,500
Average sale price per square foot: $245
Average rent for a 1-bedroom apartment: $1,950
Median household income: $65,016
Nearest major metro: Providence (5 miles)
East Providence, RI homes for sale
East Providence, RI apartments for rent
Another great place to consider living in Rhode Island is East Providence where the population is about 47,100. Popular things to do in East Providence include stopping by the Crescent Park Carousel which dates back to 1895 and taking in the scenic views from Sabin Point Waterfront Park. You can also take a tour of Pomham Rocks Lighthouse and visit downtown East Providence.
#10: Smithfield
Median home price: $430,000
Average sale price per square foot: $260
Median household income: $87,819
Nearest major metro: Providence (10 miles)
Smithfield, RI homes for sale
Smithfield, RI apartments for rent
Taking the 10th spot is Smithfield, another one of the affordable places to live in Rhode Island. This city has a population of 22,100 and you can hike along the Wolf Hill Forest Preserve, visit Stump Pond and have a meal at a nearby restaurant, or practice your skating skills at Smithfield Municipal Ice Rink. You’ll have plenty of activities to explore during your free time living in Smithfield.
#11: Central Falls
Median home price: $437,500
Average sale price per square foot: $156
Median household income: $34,689
Nearest major metro: Providence (5 miles)
Central Falls, RI homes for sale
Central Falls, RI apartments for rent
With a median home sale price of $437,500, Central Falls is another affordable city to consider buying a home in this year. You’ll find there are about 22,600 residents in the Central Falls area so you’ll have a smaller city-like feel without the big-city prices. If Central Falls is the city for you, be sure to spend the afternoon at Valley Falls Pond and check out the restaurants and shops in the heart of Central Falls.
#12: Westerly
Median home price: $435,000
Average sale price per square foot: $262
Median household income: $75,200
Nearest major metro: New London, CT (15 miles)
Westerly, RI homes for sale
Westerly, RI apartments for rent
The 12th city on our list is Westerly where you’ll find the median home sale price is $435,000. If you’re considering living in Westerly and are looking to travel to the nearest major city, you’ll find that New London, CT, is 15 miles west. There is plenty to do in Westerly like exploring the Napatree Point Conservation Area and checking out the nearby Watch Hill Lighthouse. You can also spend a relaxing day at East Beach, see a show at one of the theaters like United Theatre or Granite Theatre, and visit downtown Westerly.
Methodology: All cities must have over 20,000 residents per the US Census and have a median home sale price under the average median home sale price in Rhode Island. Median home sale price and median sale price per square foot from the Redfin Data Center during August 2023. Average rental data from Rent.com August 2023. Population and median household income data sourced from the United States Census Bureau.