Overview
Rhode Island is the smallest state but offers waterfront living, historic architecture, and proximity to Boston. Providence has undergone significant revitalization while Newport remains a prestigious coastal destination. The state provides New England charm at (slightly) more accessible prices than Massachusetts.
Rhode Island Real Estate Market
Providence has transformed from struggling city to arts and food destination with Brown University and RISD anchoring development. Newport commands premium prices for waterfront and historic properties. Suburban areas offer solid value compared to nearby Massachusetts. The entire state benefits from Boston spillover demand.
Property Taxes in Rhode Island
Rhode Island property taxes are above the national average.
Average effective rate: 1.63%
Annual tax on median home: ~$6,928
Exemptions: Vary by municipality
First-Time Buyer Programs
RIHousing Programs:
- FirstHomes - Below-market rates for first-time buyers
- Extra Assistance - Additional down payment help
- 10K DPA - Up to $10,000 down payment assistance
Closing Costs in Rhode Island
Rhode Island closing costs are moderate, typically 2-3% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Transfer tax: $2.30 per $500
- Recording fees: Town-dependent
- Attorney fees: Recommended
Frequently Asked Questions
Providence offers excellent value compared to Boston, with a growing food and arts scene, historic architecture, and access to both Boston and NYC. Brown University and RISD provide cultural and economic anchors.
Newport is the most expensive market in Rhode Island, with waterfront and historic properties commanding premium prices. The town's sailing heritage, mansions, and beach access attract wealthy buyers.
Many Boston-area workers have relocated to RI for lower costs while maintaining commute access. Providence to Boston is about 50 minutes by car or train. Property taxes are similar to MA.