Rhode Island, the smallest state in the U.S., boasts a diverse real estate landscape, with certain pockets exhibiting remarkable affluence and corresponding high home values. An analysis of Zillow’s Home Value Index and the 2023 American Community Survey reveals a concentration of wealth in coastal and island communities, reflected in soaring property prices. Focusing on 69 Rhode Island ZIP codes tracked by Zillow, a clear hierarchy of value emerges, with the top five epitomizing luxury living and substantial real estate appreciation.
Block Island, encompassed by ZIP code 02807, reigns supreme as Rhode Island’s most expensive locale. Its exclusivity, coupled with its status as the richest area in the state, fuels a robust real estate market. Home values on Block Island have not merely appreciated; they have skyrocketed. A median home value of $911,482 in December 2019 ballooned to over $1.7 million by December 2024, representing an astounding 86.7% increase. Even in the last year alone, the median home value experienced a significant 6.3% jump, underscoring the area’s continued desirability.
Jamestown, occupying Conanicut Island in Narragansett Bay and represented by ZIP code 02835, secures the second position. Situated just west of Newport and accessible via the Claiborne Pell/Newport Bridge, Jamestown attracts high-income earners, with over a third of households earning $200,000 or more annually. The median household income stands at $141,442, while the average climbs to $182,060. Home values in Jamestown have experienced impressive growth, rising by nearly two-thirds from $641,615 in December 2019 to over $1.045 million in December 2024.
Little Compton, located east of Newport and bordering Massachusetts, claims the third spot with ZIP code 02837. This community, comprised of over 1,500 households, also boasts a significant proportion of high earners, with more than a quarter exceeding the $200,000 annual income mark. The median household income in Little Compton is $129,750, while the average reaches $209,440. Home value appreciation in Little Compton has been even more dramatic than in Jamestown, surging 73.9% from $527,064 in December 2019 to $916,531 in December 2024. The most striking period of growth occurred between December 2020 and December 2021, witnessing a substantial jump from $583,112 to $710,897.
Southwestern Newport, identified by ZIP code 02840, occupies the fourth position on the list. This area, steeped in history and home to iconic Gilded Age mansions like The Breakers, exudes an aura of luxury and prestige. While home value growth in 02840 has been substantial, it hasn’t quite matched the explosive increases seen in the top three ZIP codes. Nevertheless, the median home value experienced a robust 58.2% increase from $547,602 in December 2019 to $866,061 in December 2024.
Narragansett, spanning from Port Judith to Bonnet Shores and represented by ZIP code 02882, rounds out the top five most expensive ZIP codes in Rhode Island. With a median household income of $95,794 and an average household income of $116,579, Narragansett offers a more accessible entry point to coastal living compared to its higher-priced counterparts. However, home values have still experienced impressive growth, rising 69.3% from $474,217 in December 2019 to $802,727 in December 2024. Similar to Little Compton, Narragansett witnessed its most significant year-over-year growth between December 2020 and December 2021, with values jumping from $529,385 to $641,200.
These five ZIP codes represent the pinnacle of Rhode Island’s real estate market, showcasing the desirability of coastal and island living. Driven by factors such as high incomes, exclusivity, and proximity to amenities, these areas have witnessed remarkable appreciation in home values. While Block Island stands out as the undisputed leader, each of these ZIP codes offers a unique blend of luxury, lifestyle, and investment potential, attracting discerning buyers seeking a piece of Rhode Island’s coveted real estate landscape. The substantial increases in home values over the past five years, and particularly between 2020 and 2021, reflect a broader trend of heightened demand for coastal properties, driven in part by the pandemic-induced shift towards remote work and a desire for more space and access to nature.
