F
45%
Overall NAT. AVG.
15%
Goods & Services NAT. AVG.
130%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Newport Rhode Island National
Cost of living145112100
Goods & Services115115100
Groceries102102100
Health care108108100
Housing230120100
Transportation9393100
Utilities112112100

An Overview of Cost of Living in Newport, RI

Getting a feel for the cost of living in Newport is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Newport is 145, which is 45% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Newport is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Newport falls into this category, which may not align with your goal of finding a budget-friendly living environment.

Housing costs are a very significant part of the Newport cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 129.5% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Newport, you you will have to spend 15.3% more than average when compared to the typical prices for these items, making it a more expensive place to live.

Is Newport Affordable?

Wondering if Newport is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Newport, for example, the median home price is 168% higher than what folks pay nationally, and monthly rent is 39.7% higher than the usual rates. Plus, income levels matter too, with Newport boasting a median household income of $68,201, which is 23.3% higher than the national average.

What Factors can Influence the Cost of Living in Newport?

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Newport, healthcare costs are 7.7% higher than the national average.

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Newport, the transportation index is 7.5% lower than the national average.

Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Newport, the groceries index registers 1.7% higher than the national average.

Where is the Data From?

The cost of living in Newport, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Newport is 29% higher than the Rhode Island average
  • The cost of living in Newport is 45% higher than the national average
  • Newport housing is 130% higher than the national average
  • Rhode Island general sales tax is 37% higher than the national average
  • Rhode Island state income tax is 44% higher than the national average

Most Affordable Places to Live in and Around Newport

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Compare Newport, RI Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$106,269$8,856$2,479$3,188
      Renters$45,972$3,831$1,073$1,379
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Newport, RI, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Newport homeowners, is $106,269. This would allow for a maximum of $2,479 per month to be spent on housing costs. For renters, the median monthly income is $45,972 which would result in a maximum of $1,073 to be spent on rental costs.

      Rhode Island Sales Tax

      State General Sales Tax With Max Surtax
      Rhode Island 7% 7%

      Rhode Island Income Tax

      State Income Tax (Low) Income Tax (High)
      Rhode Island 3.75% 5.99%

      Goods & Services

      Item Newport National avg. Difference
      Haircut $31.50$24.2629.8%
      Beauty Salon $49.92$45.569.6%
      Toothpaste $3.46$3.706.5%
      Shampoo $1.43$1.2811.4%
      Movie $14.37$12.1318.4%
      Bowling $22.72$18.0026.2%

      Groceries

      Item Newport National avg. Difference
      Ground Beef $5.85$5.840.2%
      Fried Chicken $1.43$1.578.9%
      Milk $4.74$4.671.4%
      Potatoes $5.00$4.931.3%
      Pizza $11.59$12.094.1%
      Beer $10.74$10.413.1%

      Health Care

      Item Newport National avg. Difference
      Optometrist $104.45$125.6816.9%
      Doctor $169.83$135.7825.1%
      Dentist $130.28$113.2915.0%
      Ibuprofen $11.11$10.654.3%
      Lipitor $369.37$468.6021.2%

      Housing

      Item Newport National avg. Difference
      Home Price $495,000.00$184,700.00168.0%
      Avg. Mortgage Payment $2,379.56$2,346.691.4%
      Apartment Rent $1,326.00$949.0039.7%

      Transportation

      Item Newport National avg. Difference
      Gasoline $3.38$3.462.5%
      Tire Balancing $48.20$59.9219.6%

      Utilities

      Item Newport National avg. Difference
      All Electricity $230.62$193.9918.9%
      Phone $195.18$192.251.5%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Tiverton, RI7,99611616.1%
      Wakefield-Peacedale, RI8,90412019.7%
      North Westport, MA4,78712020.5%
      Newport East, RI11,28912929.4%
      Kingston, RI6,40713333.0%
      Newport, RI24,69714544.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Crestview, FL24,687972.8%
      Westmont, IL24,67712019.6%
      Wright, FL24,6711000.2%
      Ives Estates, FL24,7321087.9%
      Northdale, FL24,66011111.0%
      Newport, RI24,69714544.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.