These days, most future homebuyers, known as real estate agent Kira Green, are not from Rhode Island, and have helped fill up their gorgeous apartments here in a strange way. Green says three-quarters of clients looking to buy a high-end home in Ocean State come from Boston, New York, Washington, DC, the area and California. However, due to high demand and low supply, some of these people have chosen to rent a place locally while the search for the right home unfolds. Certainly, the hot housing market continues to influence the rental market as people interested in buying a home are forced to stay on the sidelines when they wait for a rise in housing inventory in the market and wait for interest rates to be reduced. The demand for apartments is high, and rents are high. And that’s the same on a luxurious level. In Rhode Island, rents for high-end apartments are inflated, but agents don’t change that much anytime soon. Green, a founding agent at Compass Real Estate’s Providence office, says competitors have been drawn to Providence with a higher number of people since the COVID-19 pandemic compared to accessibility with metropolitan areas and relatively low cost of living and small states. “This trend is still strong and I hope it continues,” Green said. In January, National Real Estate Brokerage Redfin said that an analysis of apartments seeking rent in the last quarter of 2024 showed that the Providence region is the most affordable rental market for 44 major metro regions in the United States. The analysis ranked the metro by the difference between the median income required to seek rentals and the estimated tenant’s income. The median asking for rent in Metro Providence was $2,145 a month, $2,373 in Miami and under $2,805 in New York, but Providence’s median estimated renter income was $50,408, lower than Miami ($57,157) and New York ($71,376). However, Providence renters’ income was 41.3% less than the median rent, the largest shortfall in the metro analyzed. The report said Providence residents should earn a median income of $85,800, which is seeking rent to be affordable. For those looking for high-end long-term rentals, Rhode Island has several options, including units from skyscrapers such as Providence and WaterPlay Tower in downtown Providence. The condo on the 25th floor of the home sells for $6,100 a month. The 1,416 square feet unit has two bedrooms and two bathrooms. Just behind, listed at $6,000 per month, there is a 1,323 square feet unit on the 28th floor, with two bedrooms and two and a half bathrooms. They are renting nearly three times the median Redfin analysis, according to Stephen Antoni, associate real estate broker at Mott & Chace Sotheby’s International Realty, but it makes sense for those with a luxury budget, given the housing amenities and central location. In addition to indoor connections to Providence Place Mall, RI Convention Centre and Amica Mutual Pavilion, other amenities include a downstairs restaurant, 24-hour concierge service, security cameras and privacy. Waiting lists are frequent, and some luxury units don’t even come across the market before tenants are not ready to enter. “Picking is slim.” And property owners are earning higher rents, especially above downtown, on the east side of Providence. For example, Waterman Street in Wayland Square will be available for $4,000 in May, with top-end features such as a 60-inch TV, wireless window shade, and in-unit washer and dryer. Derek Simpson, a real estate agent at Residential Properties Ltd., says he also saw a steady stream of luxury rentals from big cities like Boston and New York to Providence. “If it’s on the market with the 02906 Zip Code on the East Side, it tends to be snatched very quickly,” Simpson said. But the parents of millennials who purchased property in Providence a few years ago have moved to stay close to their families, Green said. High demand certainly keeps Rhode Island prices up. And while observers don’t expect to get off anytime soon, agents say there are signs they are beginning to stabilize at the top. As of the end of February, the average rent for all property types in Rhode Island was $2,300. Rental data from real estate market company Zillow Group Inc shows that this is $100 from the same period last year, and $255 above the national average. “I’m not declining,” Antoni said. “All the statewide, everything is tilted… and now it’s a bit of a climb.”
