Providence, the capital of Rhode Island, has surged into the ranks of the top five hottest housing markets in the United States this year, according to a major analysis by property giant Zillow.
A City Experiencing a Renaissance
Local realtor Stephanie Basile described the city as undergoing a significant revival. "Providence has had such a huge Renaissance, and it has been picking up even more steam recently," she told the Daily Mail. She highlighted its unique appeal, being situated between Boston and New York with excellent Amtrak rail links, yet retaining a close-knit, small-town atmosphere. "You're gonna go into the coffee shop and see people you know... but you get to also have the benefits of the city," Basile added.
The city, located in eastern Rhode Island at the mouth of the Providence River near Narragansett Bay, is not just the state capital but also New England's third-most-populous city. Founded on seven hills like Rome, its most prominent are Constitution, College, and Federal Hill.
Affordability and Economic Strengths
While the overall cost of living in Providence is 8.1 percent higher than the US average, it remains 5.5 percent lower than the Rhode Island average. Crucially, housing represents a major area of affordability. According to Zillow data, the average median home cost in Providence is $294,500, significantly below the state average of $375,800.
The city boasts a robust and diverse job market, having been one of the first in the US to industrialise. Key sectors include textiles, tools, jewellery, and silverware. Major employers now span education and healthcare, such as Brown University and Rhode Island Hospital, as well as corporate giants like Verizon and Walmart. "A lot of these people, when they graduate, they stick around," noted Basile, referencing the talent from elite institutions like Brown University and the Rhode Island School of Design (RISD).
Lifestyle and Liveability
Nicknamed the 'Creative Capital', Providence is celebrated for its vibrant arts, culture, and culinary scenes. Foodies flock to legendary spots like Olneyville New York System for hot dogs and Venda Ravioli for pizza. "We have these fantastic, fine dining, high quality restaurants, it's so fun to go out in Providence at night," said Basile.
The city is also considered excellent for families, with low crime rates, top-tier schools, and abundant green spaces like India Point Park and the 15-mile East Bay bike path. Distinct neighbourhoods offer varied living: the East Side is known for historic homes near Brown University, while Downtown provides modern condos and high walkability.
Its cultural fabric is enriched by famous natives and former residents, including former Miss USA Olivia Culpo, chef Wylie Dufresne, and the late John F. Kennedy Jr., who attended Brown University in the 1980s.
Zillow's economists compiled their list of hottest markets by analysing the 50 largest US metro areas for metrics including home price growth, speed of sales, and the share of homes selling above the asking price. "Competition among buyers will be stiff and sellers will have the upper hand in this year's hottest markets," explained Zillow chief economist Mischa Fisher, a description that now firmly applies to the burgeoning market in Providence.
