Cost of Living in Providence | Is Providence Affordable? 💰 [data, tips, info]

Last Updated on: 28th July 2023, 04:50 pm

Providence, Rhode Island is one of the oldest cities in the United States. Located right on the Providence River, which feeds into the Atlantic Ocean, residents love Providence’s historic charm, waterfront parks, amazing dining and museums. But is Providence an affordable location for you? It’s definitely important to research Providence’s cost of living before you relocate. When people are planning a move to a new city, they often only look at real estate prices to decide if they can afford it. But there are so many more factors you should consider! It’s important to look at a city’s average salaries, the prices of goods and services, tax rates, and more. This varies depending on the size of your family and income, but our comprehensive guide has everything you need to know to decide if Providence will work for your budget.

Providence Cost of Living Index

If you’re thinking about moving to Providence, you’re definitely wondering how much it costs to live in Providence. So, is Providence an affordable place to live? The answer depends on a lot of factors, including your earning power, the size of your family, the type of lifestyle you’d like to live, and more. One way to determine a city’s affordability is to look at the Providence cost of living index. The cost of living index in Providence is 18.7% higher than the national average. That could mean big savings, or big budgetary changes depending on your current location!

A city’s cost of living index gives you a broad idea of what you should expect, but it’s important to dig deeper to see where your spending will change. For example, in Providence, the big areas that are more expensive are housing and utilities. Providence housing prices are 31.3% higher than the national average, and utilities are 36% higher. Transportation is 12% higher than the national average, and healthcare is only 9.3% higher. Grocery items in Providence are 6.4% higher than the national average. It’s a good idea to compare these figures to your current location to determine whether or not your budget will be greatly affected or not. If you’re moving from an expensive place like New York City, it could mean big savings! But if you’re coming from somewhere more affordable, Providence could come at an extra cost. According to the Providence consumer price index, those residing in Providence spent about 34% of their income on housing, 15% on transportation, and 13% on food.

Cost of Groceries, Food, Gas & Household Items in Providence

Taking a look at daily expenses in Providence is a great way to determine if moving there will change your budget and what the cost of maintaining your lifestyle will be like. You should know how much utilities cost, if grocery prices are different than your current city, transportation prices, and more.

Here is a list of some prices for everyday goods and services in Providence to give you an idea of what you’ll pay:

• Steak (Ribeye, 1lb) $12.12
• Milk (regular 1/2 gallon) $3.09
• Eggs (1 Dozen) $1.82
• Potatoes (5 lb bag) $3.38
• Bread (1 loaf) $3.63
• Beer (Heineken’s 6 pack) $10.32
• Average Cell Phone Bill $185.10
• Average Cost of Gasoline (per gallon) $2.675
• Average Cost of Utilities (per month) $243.34
• McDonald’s Burger (1/4 Pounder) $4.42
• Large Pizza $10.72
• Movie Ticket (1st run) $11.80

Providence Real Estate Market – Cost of Housing

The Providence real estate market is considered to be very competitive. Homes usually stay on the market for about 5 weeks, and often sell above asking price with waived contingencies. The median sale price of a home in Providence is $298,450, which is $116 per square foot. Real estate prices are rising in Providence, too – the current average sale price is up 8.1% since last year. 47.9% of homes are sold above the list price in Providence.

In Providence, the homeownership rate is 56%. The average commute time in Providence is 21.9 minutes, which is several minutes faster than the national average. About 63.5% of Providence residents drive alone to work, and most households have two cars.

Providence Rental Market – Average Rents in Providence

If you’re not looking to buy, renting is a great option in Providence! About 43% of residents in Providence rent their homes. The average cost of rent in Providence is $1944. Rent prices have been increasing in Providence; the current average monthly rent is about 3% higher than last year. The average apartment size in Providence is 812 square feet.

The most expensive neighborhoods in Providence are Wayland, College Hill, and Blackstone, which are all known for being affluent and safe. The least expensive areas in Providence are Manton, Smith Hill, and Lower South Providence, which do have higher rates of crime.

Average Salary & Household Income in Providence

Another thing to look at when you’re wondering whether you can afford Providence is how much you may make doing the job you regularly do. While this will vary depending on your experience and field of work, looking at the average salary in Providence can help. The average salary in Providence is $67,000. The average hourly wage in Providence is $19.56. The most common jobs held by Providence residents are education instruction and library occupations and management occupations. Of course, your pay may change when you relocate, so it’s important to take a look at the average salaries in your industry. If you’re an operations manager, you can expect to earn around $60,000 a year in Providence. A software engineer in Providence makes an average of $75,000 a year. If you’re a registered nurse paid by the hour, you can expect an average rate of $30 an hour in Providence. However, Providence administrative assistants and medical assistants earn about $17 an hour. Wages have increased about 1.8% year over year in Providence. However, the cost of living in Providence has increased by 22%.

The median household income in Providence is $42,158 and growing at about a 4.44% rate annually. About 26% of the Providence population lives below the poverty line. That’s almost two times the national average. Females aged 25-34 are the largest demographic living in poverty.

Income, Sales, & Property Taxes in Providence

Taxes are a very important factor to consider before relocating. Many people don’t research income, sales, and property tax rates, and it can make a big difference in your lifestyle! Depending on the tax rates in your current location, that can mean big changes. Let’s take look at what the current tax rates in Providence are:

Providence Income Tax Rate

Income taxes in Rhode Island are different for different tax brackets. Income tax rates for  Providence residents are as follows:

• 3.75% tax rate for workers earning $0 – $65,250 annually
• 4.75% tax rate for workers earning $65,250 – $148,350 annually
• 5.99% tax rate for workers earning $148,350 or higher annually

Providence Sales Tax Rate

Sales tax rate in Providence is 7%. The entire rate is Rhode Island state sales tax, none is allotted for Providence or Providence County, so no matter where in Rhode Island you are, you’ll pay 7%.

Providence Property Taxes

Property taxes vary from one home to the next. Several factors are considered when calculating how much you will pay property taxes, like your property size, your lot lines, and the value of your property. In Providence, the average property tax rate is 1.79%, which is slightly higher than the Rhode Island average of 1.53%. The national average is 1.080%.

Can you afford Providence?

Providence is more expensive than some areas in the United States, but certainly not the most expensive. Depending on your current location and occupation, you might not notice a change in your cost of living at all! 

Are you looking into the cost of living in Providence because you’re relocating there? If so, call our highly rated, trustworthy Providence movers at Correira Brothers to help get you to your new home with ease. We’ll get you a free quote after just a few questions!