Cost of Living in Providence, RI 2023

Although Rhode Island is the smallest state in the U.S., it makes up in history and charm for what it is lacking in size. The state capital, Providence, exemplifies this feature and is often considered an under-appreciated gem of the East Coast, offering residents countless options in terms of entertainment, art, and food.

Since the capital city is centrally located within the state, you’re a quick 30-minute drive from just about anything. Explore some of the city's unbeatable food trucks, experience some of the deep-rooted histories, or even take a pleasant long stroll along the sandy shores.

Whether you’re moving to Providence to take advantage of the scenic views, the affordable cost of living, the foodie scene, or some combination, you’ll want to get a good idea of what your costs will look like. So let’s look at the cost of living in Providence to understand better how much you need to live there.

Providence Housing Costs

As we enter spring, leaving behind the cold weather of winter and slower rental trends, things are picking up once again. In Providence, rent prices are on the rise. The median rent index is currently $1,910 for a studio apartment, $1,069 for a one-bedroom apartment, and $1,416 for a two-bedroom.

Providence is not the only East Coast city that has seen rent increases recently and year over year. Some of the most popular cities, including their year-over-year growth, across this region of the U.S. include New York City (+3.5%), Philadelphia (+0.9%), and Boston (+4.7%). The median rent index for a two-bedroom apartment in these cities is $1,941, $1,099, and $1,982, respectively.

The Providence housing market has also seen steady, significant growth, with median home prices currently at $456,217. Compared to other major cities across the East Coast, these prices are reasonable, especially when you consider the median price index of New York City is now at $759,901 and Boston at $654,300. Other comparable cities are lower, such as Philadelphia at $330,741.

Providence Transportation

Providence’s official public transportation operator is the Rhode Island Public Transit Authority (RIPTA). Through the RIPTA, you can receive low-cost bus and trolley services throughout the entire state. Bus fares are $2 per one-way ride or $6 for a one-day unlimited pass throughout the state.

While the public transportation in Providence is affordable and runs throughout the year, the city is also incredibly car-friendly, unlike many other major East Coast cities like Boston or New York. So if you plan to make the most out of living in Providence, you’ll probably want to have a car to get around and see all of the sights.

If you're a single adult without children, you'll spend about $4,470 for transportation in Providence annually. A family of four, including two working adults and two children, will pay $11,821 for transportation annually. Keep in mind that you’ll also account for the cost of gasoline, which, thankfully in Providence, is around $3.91 per gallon, significantly lower than the national average of $3.78.

Providence Food Costs

Providence is a foodie heaven, with countless food trucks and other dining options readily available throughout the city. The city is known for a handful of authentic foods to add to your must-eat list, including Rhode Island clam chowder, johnnycakes, Rhode Island-style calamari, stuffies, and clam cakes.

Eating out at an inexpensive restaurant in Providence costs $24.50 for a meal on average, while a three-course dinner for two people at a mid-range restaurant runs $80 without alcohol or dessert.

Single adults without children should expect to pay at least $4,559 on food per year. However, if you have a family of two working adults and two children, you should expect to pay $13,429 per year for food.

You can anticipate paying slightly below the national average for food items from local grocery stores like Eastside Marketplace, Price Rite Marketplace of Providence, or Good Fortune Supermarket. For example, a gallon of milk costs $3.54 in the grocery store, while the national average is $3.88.

Providence Healthcare Costs

When planning your budget in Providence, account for proper medical care. For example, a single adult without children will pay around $3,568 for medical care over the year while working adults with two children will pay $8,961. In addition, childcare for this family will cost upwards of $30,000 per child, per year.

Providence Utilities

The summers may be mild in Providence, with July being the hottest month with an average daytime high of 82°F. However, Providence's brutal East Coast winters are very snowy and cold. The coldest days of the year fall in January, with an average overnight temperature below 22°F.

You'll need to account for higher utilities year-round to stay comfortable and combat winter's freezing weather. Providence’s basic utilities include electricity, heating, cooling, water, and garbage, running $209.90 for a 915-sq. ft. apartment.

Adding on the Internet with 60 Mbps or more with unlimited data, cable/ADSL will cost you an extra $64 for a total of $273.90 each month.

Before moving, you should get a better idea of what to expect and budget accordingly by getting an idea of how much utilities will cost in an apartment.

Providence Fitness and Entertainment

Because Providence’s winter months make it hard to get out and exercise, you might want to consider fitness club membership costs to keep fit throughout the year. Thankfully, the monthly fee for a fitness club membership for one adult is very affordable, at $45 per month.

Otherwise, when weather permits, you can enjoy the beautiful landscape of Providence outdoors. Hike some of the city’s most popular trails, including the Blackstone Park Conservation District, Neutaconkanut Park, and Roger Williams Pond Trail. Providence’s other great outdoor activities include bird-watching, roaming parks, or hitting the bike paths.

Of course, if you prefer to stay indoors, there are plenty of entertainment options to keep you busy without leaving the city. For example, if you enjoy the local cinema, it will cost you $12.00 without snacks or drinks. Or, check out some of the city's art and history at the Rhode Island School of Design Museum of Art, the Rhode Island State House, or the Providence Performing Arts Center.

Other Expenses to Consider in Providence

Rhode Island has a progressive income tax rate. Luckily, you won’t have to worry too much about taxes as both sales and income tax rates are near national averages. Providence's current sales tax rate is 7%, including the combined state, county, and city rates.

Anyone moving out of state to Providence will also need to consider costs associated with cross-country movers, storage, hotels, and transportation. Additional fees, including application fees, security deposits, pet deposits, and more, often come with these moves.

It’s also important not to overlook the costs of furnishing your home. Get more tips for decorating your apartment on a budget to help you save some money during your big move.

What Salary Do I Need to Live in Providence?

Your recommended salary in Providence depends entirely on the lifestyle you plan to lead. The living wage in Providence is $17.42 per hour, which is the basic wage needed to pay for essentials like housing, food, and necessities. Keep in mind that extra costs including dining and entertainment are not a part of the living wage figure, so be sure to account for those in your budget as well.

The average salary index in Providence is $71,000 per year, roughly $20.97 per hour.

You can also consider the 30% rule for rent to determine your ideal salary in Providence. This rule says you shouldn’t spend more than one-third, or 30%, of your gross income on rent.

For example, if you’re looking for a one-bedroom apartment in Providence with an average rent price of $1,069, you can use the 30% rule to determine your minimum gross income by using the following formula:

10/3 x rent price

Based on this rule, your gross income should be about $3,563.33 per month or about $42,760 annually.

Job Market in Providence

While the cost of living is affordable in this city, it has a less healthy job market than similarly sized metropolitan areas across the country. The unemployment rate in Providence falls slightly below the national average of 3.6%, currently at 3.3%. However, according to the U.S. Census Bureau, the median household income is slightly higher than the national average of $69,021, currently at $55,787.

Providence has evolved into a booming economy, focused primarily on industries like hospitality, finance, business, health services, and education. Some of the city’s major employers include Brown University, IGT, Citizens Financial Group, and the Roger Williams Medical Center.

Final Thoughts

If you are interested in moving to Providence, a city that has been repeatedly voted in the top 25 best cities to live in on the East Coast, you’ll need to determine which Providence neighborhood is best for you and learn how to apartment hunt. Then, register with Apartment List today and start checking out the available apartments to rent in Providence!

FAQs: Cost of Living in Providence

How expensive is an apartment in Providence?

A one-bedroom apartment in Providence costs $1,069. A two-bedroom apartment in Providence costs $1,416.

What is the cheapest rent in Providence?

The cheapest rent in Providence is a one-bedroom apartment that rents for $1,069. A two-bedroom apartment in Providence costs $1,416.

How expensive is it to live in Providence?

Living in Providence is relatively expensive. In Providence, rent averages $1,069 for a one-bedroom apartment. Transportation costs in Providence amount to $4,470 a year. Food costs $4,559 a year on average for a single resident of Providence.

What is the population of Providence?

The population of Providence is 190,934. It is the most populated city in the state of Rhode Island.

How much money do you need to live comfortably in Providence?

It's always a good idea to use the 30% rule when renting an apartment and sticking to your budget. A one-bedroom apartment in Providence will run about $2,272 a month, meaning your salary should be at least $90,880 per year, or about $43.69 per hour. You should also consider MIT’s living wage estimate for Providence, which is currently $23.23 per hour. This figure should cover everything you need for the bare basics, without much room for extras or student loan repayments.