Newport's New 28-Story Tower Will Reshape the Rental Market-Here's What Buyers and Tenants Need to Know

Newport's planning board signed off last week on a 28-storey mixed-use tower at 165 Aquidneck Avenue, clearing the way for the city's largest rental development in nearly two decades. The $185 million project will deliver 340 apartments-220 market-rate units and 120 designated as affordable under the city's inclusionary zoning policy-plus 8,000 square feet of ground-floor retail and a 400-space underground garage. Demolition of the existing single-storey office building is scheduled to begin in October, with opening targeted for late 2028.

The approval matters now because Newport's rental vacancy rate sits at just 2.1 percent, the lowest in the state. Median one-bedroom rents have climbed to $1,680 per month-up 12 percent since 2023-pricing out service workers, young professionals, and retirees on fixed incomes. The tower's affordability units, locked in at $1,050 for a one-bedroom for 30 years under a deed restriction, represent the largest single addition to Newport's subsidised stock since the Thames Street redevelopment wrapped in 2019.

A Crowded Corridor Gets Denser

Aquidneck Avenue is already Newport's commercial spine. The site sits directly across from the Newport Gateway development, a mixed-use complex that opened in 2022 with 150 apartments and a Trader Joe's. Two blocks south is the Thames Street Historic District, home to waterfront restaurants and galleries; north lie the city's municipal offices and the Newport Public Library on Walnut Street. The tower will compete for foot traffic with both anchors, and planners expect it to animate a corridor that has historically served as a transit zone between the waterfront and residential neighborhoods like Easton.

The Newport Chamber of Commerce issued a cautious endorsement, citing job creation during construction and the retail activation at ground level. But the neighborhood association for Easton-Mount Hope raised concerns about traffic on Walnut Street and the loss of afternoon shadow on the community garden at Catherine Harris Park, a 0.8-acre green space two blocks away. The planning board imposed a condition requiring the developer to fund a traffic study and contribute $150,000 to local streetscape improvements on Aquidneck and Walnut.

Realtor feedback has been mixed. Three major agencies contacted for this article-Newport Realty Group, Lila Delman Real Estate, and Prime Newport Properties-noted that the tower will likely push rent expectations upward in the 18-month window before opening. A two-bedroom in the surrounding Easton neighborhood currently averages $2,100; agents predict that will climb 8 to 10 percent once the tower marketing begins in earnest. Conversely, the 120 affordable units could ease pressure on the city's waiting list for subsidised housing, which now exceeds 400 families.

The Numbers and the Timeline

Newport has approved just four residential projects of 100+ units since 2015. The last major rental tower, the 165-unit Preservation Society Lofts on Thames Street, took 14 months to pre-lease before opening in 2017. The new tower's developers have secured a construction loan and committed to breaking ground this autumn; completion is pegged to September 2028, though local project managers flagged that underground excavation in Newport's dense clay soil can add 4-6 weeks to schedules.

The city planning department estimates the tower will generate $4.2 million annually in property tax revenue once stabilised-a 23 percent increase over the current land value. That money flows into schools and municipal services, offsetting some resident concerns about density. The affordability covenant, meanwhile, ties the developer to maintaining income-restricted units through 2054, meaning the benefit accrues across two generations of Newport residents.

Prospective renters should monitor the pre-leasing launch, expected in spring 2027. The affordable units will be allocated through the Newport Housing Authority's lottery; applications typically open 90 days before occupancy. Market-rate units are likely to command a premium in the first two years before comparable towers mature the supply. First-time renters and downsizers should expect studios and one-bedrooms in the $1,550-$1,900 range; two-bedrooms will likely start at $2,200.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.