There’s a the age old question everyone thinks about when they decide to move to a city in Rhode Island:
Should I buy a place or rent?
Well, we aren’t here today to solve that problem for you exactly. We are just assuming you’ll do the right thing and a buy a place 😉
And while we are happy to tell you the best place to live in Rhode Island, this analysis is going to tackle the question of the best place to buy a house as an investor. That is we are going to try and determine the up and coming cities in the Ocean State.
To do that we are going to look at places in Rhode Island that are growing faster than average, but where home prices are below average. In every day terms, the “deals”.
The best deal in Rhode Island at the moment? That would be Pascoag according to our analysis.
Here’s a look at the top ten places to buy a home in Rhode Island for 2019:
- Pascoag (Photos | Homes For Sale)
- Providence (Photos | Homes For Sale)
- Pawtucket (Photos | Homes For Sale)
- Woonsocket (Photos | Homes For Sale)
- Newport East (Photos | Homes For Sale)
- Tiverton (Photos | Homes For Sale)
- Newport (Photos | Homes For Sale)
- Cranston (Photos | Homes For Sale)
- Narragansett Pier (Photos | Homes For Sale)
- Valley Falls (Photos | Homes For Sale)
The methodology that wen’t into this can be a bit complicated, so we’ll break it down for you in as much detail as we can below.
If you’re not worried about finding a deal on good places to live, check out the most expensive places to live in Rhode Island and, for those of you on a budget, the cheapest places to live in Rhode Island.
For more Rhode Island reading, check out:
- 10 Best Places To Raise A Family In Rhode Island
- These Are The 10 Best Places To Retire In Rhode Island
- These Are The 10 Richest Cities In Rhode Island
How do you determine the best places to buy a home in Rhode Island for 2019?
We were in real estate for almost five years and have been working on this site for another three. Suffice is to say, we’ve put a lot of thought into what goes into finding a good place to buy a home.
So all that thinking has come to this moment where we get to spell out how we’d approach finding an up-and-coming place to live in Rhode Island. Put differently, the analysis will try to find places in Rhode Island with undervalued homes relative to pent up demand.
To do that we looked at the most recent American Community Survey Census data for 2013-2017 and compared it to the previous vintage (2012-2016). Specifically, we used the following criteria:
- Y-o-Y Change In Population (People want to live here)
- Y-o-Y Change In Median Home Prices (People are willing to pay for it)
- Home Prices Relative To The State Average (It’s still kinda cheap)
We want places that are growing, have seen home prices increase in recent years, and are still “cheap” for Rhode Island with the following caveats:
- Home prices had to be within 20% of the state average (Much lower than that and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 34 cities and towns in Rhode Island, only 17 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 17 for the criteria mentioned above with 1 being the best for that criteria. We averaged the rankings to create a “best place to buy” index with the place having the lowest index being the best.
Turns out that Pascoag is the best potential gem in the not-so-rough in the Ocean State.
Read on for more on these places.
The area that is now Providence was first settled in June 1636 by Roger Williams and was one of the original Thirteen Colonies of the United States. Williams and his company felt compelled to withdraw from Massachusetts Bay Colony. Providence quickly became a refuge for persecuted religious dissenters, as Williams himself had been exiled from Massachusetts.|Providence residents were among the first Patriots to spill blood in the leadup to the American Revolution during the Gaspe Affair of 1772. Rhode Island was the first of the thirteen colonies to renounce its allegiance to the British Crown on May 4, 1776. It was also the last of the thirteen colonies to ratify the United States Constitution on May 29, 1790, once assurances were made that a Bill of Rights would become part of the Constitution.
The Pawtucket region was said to have been one of the most populous places in New England prior to the arrival of European settlers. Native Americans would gather here to take advantage of the salmon and smaller fish which gathered at the falls. The first European settler here was Joseph Jenckes, who came to the region from Lynn, Massachusetts. He purchased about 60 acres near Pawtucket Falls in 1671. He established a sawmill and forge. These, along with the entire town, were later destroyed during King Philip’s War.|Other settlers followed Jencks, and by 1775 the area was home to manufacturers of muskets, linseed oil, potash, and ship building. Also around this time Oziel Wilkinson and his family set up an iron forge making anchors, nails, screws, farm implements, and even canons.
Before the arrival of European settlers in northern Rhode Island during the 17th century, today’s Woonsocket region was inhabited by three Native American tribes-the Nipmucs, Wampanoags, and Narragansetts. In 1661, the English theologian Roger Williams purchased the area from the “Coweset and Nipmucks”, and in a letter referred to modern day Woonsocket as “Niswosakit”.
Tiverton was incorporated by English colonists in 1694 as part of the Province of Massachusetts Bay. In 1746, in the final settlement of a long colonial boundary dispute between Rhode Island and Massachusetts, Tiverton was annexed to Rhode Island by Royal Decree. Tiverton was incorporated as a town of Rhode Island in 1747. Until that year, Tiverton also controlled the area of East Freetown, Massachusetts, as an outpost. The boundary settlement of 1746 had put East Freetown in Massachusetts, and in 1747 it was purchased by Freetown.
Newport was founded in 1639 on Aquidneck Island, which was called Rhode Island at the time. Its eight founders and first officers were Nicholas Easton, William Coddington, John Clarke, John Coggeshall, William Brenton, Jeremy Clark, Thomas Hazard, and Henry Bull. Many of these people had been part of the settlement at Portsmouth, along with Anne Hutchinson and her followers. They separated within a year of that settlement, however, and Coddington and others began the settlement of Newport on the southern side of the island.
Much of the land was purchased by Roger Williams from the Narragansett Indians in 1638 as part of the Pawtuxet Purchase, and the first settler in the area was William Arnold, who was followed shortly by William Harris, William Carpenter and Zachariah Rhodes. Stephen Arnold, a brother-in-law of Rhodes and William Arnold, built a gristmill on the Pawtuxet falls and laid out the “Arnold Road” connecting it to the Pequot Trail leading to Connecticut. Arnold’s son, Benedict Arnold, became the first Governor of Rhode Island under the charter of 1663. After area residents were unable to agree upon a name for a new town for decades, the Town of Cranston was eventually created by the General Assembly in 1754 from a portion of Providence north of the Pawtuxet River. Historians debate whether the town was named after Governor Samuel Cranston, the longest-serving Rhode Island governor or his grandson, Thomas Cranston, who was serving as Speaker of the Rhode Island House of Representatives at the time that the town was created. In the early 1770s town meetings were held at the taverns of Caleb Arnold and Nehemiah Knight where Cranstonians voted in favor of a resolution opposing the British Parliament’s Coercive Acts, and the town heavily supported the Patriot cause during the Revolutionary War. After losing much of its territory to neighboring towns and the city of Providence over the nineteenth century, Cranston itself became a city on 10 March 1910.|Cranston is located at 4146N 7127W 41.767; -71.450.
There You Have It – The Best Places To Purchase A House In Rhode Island for 2019
There’s our analysis of the best places to buy a house in Rhode Island. And, to be clear, we aren’t necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.
In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 34 places in the state.
So if we’d could rent or buy in these cities, we’d definitely buy.
For more Rhode Island reading, check out:
Detailed List Of The Best Places To Buy A Home In Rhode Island