Providence, Rhode Island, has officially been named the least affordable rental market in the country, according to a recent Redfin report. The findings place Providence ahead of notoriously expensive cities like Miami, New York, Los Angeles, and Boston, highlighting a significant challenge for renters in the Ocean State.

With a median asking rent of $2,145, renters in Providence need to earn $85,800 annually to comfortably afford housing. However, the median income for renters in the city is only $50,408, creating a 41.3% affordability gap—the largest among all metro areas analyzed in the study.

This affordability crisis raises important questions: Why is renting in Providence so expensive? What are the alternatives for renters and homebuyers? And how can Rhode Island residents navigate this difficult market?

At The Slocum Home Team, we believe it’s crucial for both renters and homebuyers to understand the local housing market so they can make informed decisions. Let’s break down what’s happening, what’s causing these rental spikes, and what you can do to secure stable housing in Rhode Island.

How Providence Became the Least Affordable Rental Market in the U.S.

Nationally, renters need to earn $63,680 to afford the median U.S. apartment—a number that has actually declined slightly in recent years. However, Providence renters need an income of $85,800 to afford the typical apartment, a 12.6% increase from December 2023.

So why has Providence, a city not traditionally associated with sky-high rent, landed at the top of the least affordable rental markets?

1. Supply & Demand Imbalance

• Limited housing inventory: There simply aren’t enough available rental units to meet demand, pushing prices higher.

• High student population: With Brown University, RISD, Johnson & Wales, and Providence College, demand for housing remains strong year-round.

• Boston spillover effect: As Boston’s rental prices climb, more people are looking to Providence as an alternative—driving up demand.

2. Wage Growth Hasn’t Kept Up

While the median renter salary in Providence is $50,408, the income needed to afford an average apartment has surged to $85,800—a gap of over $35,000. This growing wage-housing disparity makes it harder for middle-class renters to find affordable options.

3. Lack of New Affordable Housing

Although there are development projects in the works, the supply of new, affordable rental units has not kept pace with demand. Many new apartments are luxury units, which further increases the median asking rent.

4. Rent Increases Outpacing National Trends

While some U.S. metros have seen rental prices stabilize, Providence has experienced double-digit rent increases over the past year. In comparison:

• National median rent: $1,592

• Providence median rent: $2,145 (+35% higher than the U.S. average)

Is Buying a Home in Rhode Island a Better Option?

With renting becoming more expensive, many Providence residents are wondering: Should I keep renting or consider buying?

While home prices remain high, purchasing a home could be more affordable long-term than renting—especially for those with stable employment and good credit. Here’s why:

1. Mortgage Payments vs. Rent

• The average monthly mortgage payment for a $350,000 home in Rhode Island (with a 10% down payment and a 7% interest rate) is $2,100—less than the median rent in Providence ($2,145).

• Unlike rent, mortgage payments build equity, helping homeowners create long-term wealth.

2. Rhode Island Homebuyer Assistance Programs

Rhode Island offers several financial assistance programs to help renters transition into homeownership:

• RIHousing’s 15kDPA Program: Provides $15,000 in down payment and closing cost assistance for first-time buyers.

• FirstGenHomeRI: Offers $25,000 in financial aid to first-generation homebuyers.

• RI REALTORS® Homebuyer Grant: Grants $1,000-$2,000 in assistance to eligible first-time homebuyers, including veterans.

These programs make it possible for renters—especially those struggling with high housing costs—to consider homeownership as a viable alternative.

What Can Renters in Rhode Island Do?

1. Explore Other Housing Options

• Consider looking outside of Providence proper in more rural areas where rents tend to be lower.

• Research multi-family homes where you can rent out a portion of the home to offset mortgage costs.

2. Look Into Rent Control & Housing Assistance

Local organizations, such as The Providence Organization of Workers and Renters, advocate for rent control and tenant protections. While Rhode Island does not currently have widespread rent control, future legislation could impact affordability.

3. Make a Plan to Buy Instead of Renting

If you’re tired of rising rents, now may be the time to plan for homeownership. Start by:

• Checking your credit score and improving it if needed.

• Exploring Rhode Island’s first-time homebuyer programs.

• Getting pre-approved for a mortgage so you know your buying power.

Final Thoughts: Should You Keep Renting or Start the Homeownership Journey?

Providence’s affordability crisis is making it harder for renters to stay in the city. With rents outpacing income growth and homeownership becoming a more attractive alternative, many renters are looking for a long-term solution.

If you're unsure whether to rent or buy, let’s talk. At The Slocum Home Team, we help renters explore their options, understand financing programs, and find homes that fit their budget.

📞 Call Nick Slocum or one of The Slocum Home Team’s top agents today.