ZIP Code 02835 Housing Market

📝 Local Market Notes

The housing market in ZIP code 02835, located within Newport County, Rhode Island, exhibits a robust upward trajectory. The FHFA House Price Index (HPI) for this area has surged from 263.06 in 2021 to 409.16 in 2025. This represents a cumulative increase of approximately 55.5% over the four-year period, indicating sustained demand and significant appreciation. The most recent year-over-year growth of 7.04% further confirms that momentum remains strong, outpacing the broader regional trends. When compared to wider geographic benchmarks, ZIP 02835 demonstrates distinct strength. Its 7.04% annual growth slightly exceeds the Newport County average of 6.81% and significantly outperforms the Rhode Island state average of 4.59%. This divergence suggests that specific local factors are driving premium pricing in this sub-market, distinguishing it from the more moderate appreciation seen across the state. While nearby ZIP 02840 shows a higher HPI level, 02835’s consistent outperformance relative to the state median signals a high-desirability area within the county. The sub-market character of 02835 aligns with an upper-middle to luxury segment. The parent county’s median home value of $609,700 and median household income of $103,514 indicate a high-income demographic base. With an owner-occupancy rate of 67.9%, the area leans toward homeownership rather than rental density. However, the median gross rent of $1,713 per month remains elevated, reflecting the high cost of living in the region. For prospective buyers, the practical takeaway is that entry into ZIP 02835 requires substantial capital. With a 30-year mortgage rate at 7.40%, the cost of financing has risen sharply, making the high appreciation rates both a benefit for existing owners and a barrier for new entrants. The data indicates a competitive environment where price increases are outpacing national norms, necessitating careful budgeting and timely decision-making for those seeking to purchase in this specific Newport County location.

Based on FHFA House Price Index data.