Providence housing market ranks 8th most expensive in the U.S.

Thinking of buying a home in Rhode Island? You’re not alone, but be prepared to dig deep into your wallet. According to new data from Realtor.com reported by Investopedia, the Providence housing market ranks 8th most expensive in the country for July 2025.

Providence–Warwick (RI):

    •    Median listing price: $604,950

    •    Estimated monthly housing costs: ~$3,900

    •    Annual income needed to afford a home: $155,460

Despite having the lowest median price on the top 10 list, higher mortgage rates and property taxes in Rhode Island push costs higher than some other metros.

Here’s the full top 10 most expensive metro areas to buy a home (July 2025):

    1.    San Jose, CA – $1,373,750 (Income Needed: $323,153)

    2.    Los Angeles, CA – $1,148,483 (Income Needed: $271,573)

    3.    San Francisco, CA – $990,000 (Income Needed: $235,284)

    4.    San Diego, CA – $987,500 (Income Needed: $234,712)

    5.    Boston, MA – $841,950 (Income Needed: $211,288)

    6.    New York, NY – $775,000 (Income Needed: $195,591)

    7.    Seattle, WA – $785,463 (Income Needed: $191,093)

    8.    Providence, RI – $604,950 (Income Needed: $155,460)

    9.    Sacramento, CA – $625,000 (Income Needed: $151,709)

    10.    Washington, D.C. – $612,500 (Income Needed: $148,570)

The national median listing price? $440,950.

Rhode Island legislators recently proposed a luxury property tax, nicknamed the “Taylor Swift Tax”, which would place a surcharge on properties not used as a primary residence that are valued over $1 million.

Proponents of the bill say it will help create more housing opportunities and encourage owners to either live in the state year round, or rent out their luxury homes that often sit vacant most of the year.

Bottom line: Whether it’s the West Coast or the Northeast, affordability is out of reach for many Americans, and Rhode Island is no exception.

Are you surprised by how expensive it is to live in Rhode Island? Do you think the market will cool off anytime soon?