Providence homeowners are facing dramatic property assessment increases, with values surging by up to 50% in some areas. A newly released Vision Government Solutions report, prepared for the City of Providence, reveals substantial jumps in property values across the city—especially for single-family and multi-family homes.

At the same time, Mayor Brett Smiley is pushing to remove the state-imposed 4% cap on annual property tax increases, which could leave Providence homeowners with significantly higher tax bills in the coming years.

So, what does this mean for homeowners, landlords, renters, and investors? Let’s break it all down.

How Much Have Property Values Increased in Providence?

According to the report, the average single-family home value in Providence increased by 33%, rising from $373,235 to $494,674. However, some neighborhoods saw even steeper increases.

Single-Family Home Revaluations by Ward:

• Ward 1 (Fox Point, Wayland Square, College Hill, Jewelry District, Downtown)

  • Previous Average: $825,886

  • New Average: $1,125,487 (+36%)

• Ward 2 (Blackstone, College Hill, Wayland)

  • Previous Average: $965,934

  • New Average: $1,269,784 (+33%)

• Ward 8 (Lower-income areas, West End)

  • Previous Average: $251,524

  • New Average: $329,556 (+31%)

Multi-family homes saw even higher percentage increases, which could lead to higher rents as landlords adjust to rising tax bills.

Multi-Family Property Increases:

• Two-family homes: +45%

• Three-family homes: +50% (highest increase in Ward 12, where values jumped 60%)

Commercial properties, on the other hand, experienced much more modest increases, with:

• Office buildings up 9%

• Retail properties up 14%

• Commercial properties overall up 17%

This sharp contrast shifts the tax burden onto residential property owners, potentially leading to higher costs for both homeowners and renters.

Will This Lead to Higher Property Taxes?

Right now, the biggest question is how much tax rates will change.

Even though property values have increased, the city hasn’t yet set the new tax rate. Providence could lower the tax rate to offset the higher assessments—but with Mayor Smiley pushing to remove the 4% cap on annual tax hikes, homeowners may see significant increases.

If the cap is removed, homeowners could face tax hikes far beyond what has been allowed in previous years.

How This Affects Homeowners & Sellers in Providence

1. Higher Assessments Don’t Always Mean Higher Taxes—But They Might This Time

• If Providence lowers the tax rate, property tax bills may not increase as much as assessments.

• However, if the tax rate remains the same or increases, tax bills could skyrocket.

2. Homeowners Can Appeal Their Property Assessment

• If you believe your new assessed value is too high, you can file an appeal with the Providence Tax Assessor’s Office.

• The deadline for appeals varies, so check the city’s website for official filing dates and requirements.

3. Selling Your Home? Your Home’s New Value May Work in Your Favor

• Higher assessments could attract more buyers looking in your price range.

• However, higher property taxes may scare off some buyers, making pricing strategy even more important.

If you’re considering selling your home in Providence, now is a critical time to analyze the market and ensure your home is priced competitively.

How This Affects Renters in Providence

If you rent in Providence, your costs could go up.

Why? Because multi-family properties saw the biggest assessment increases. Many landlords pass higher property taxes onto tenants in the form of rent increases.

What renters should expect:

• Higher rent in multi-family buildings

• Fewer available units, as some landlords may decide to sell rather than absorb higher costs

• More competition for affordable housing

For renters thinking about buying a home, this market shift makes it even more important to understand mortgage options, homebuyer assistance programs, and long-term affordability.

Key Takeaways: What Providence Homeowners Should Do Now

1. Check Your New Property Assessment

• Compare it to recent sales of similar homes in your neighborhood.

• If it seems too high, file an appeal with the Providence Tax Assessor’s Office.

2. Watch for Changes to the Tax Rate

• The city could adjust the rate to offset higher home values.

• However, with Mayor Smiley pushing for an end to the 4% cap, be prepared for possible increases.

3. If You’re Thinking About Selling, Now May Be the Time

• With home values at record highs, sellers have an opportunity to maximize their sale price.

• However, buyers may become more hesitant if property taxes rise significantly.

4. Renters Should Prepare for Potential Rent Increases

• With multi-family properties seeing the highest assessment jumps, expect landlords to pass some costs onto tenants.

If you’re thinking about buying a home instead of continuing to rent, now is a good time to explore your options before rising costs make it even harder to find affordable housing.

Need Help Navigating the Market?

The Providence real estate market is changing fast. Whether you’re a homeowner, buyer, or investor, staying informed is the key to making smart financial decisions.

📞 Call one of The Slocum Home Team’s top agents today to discuss how these assessment changes impact you.