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Real Estate Pros Predict Rent Prices Will Skyrocket in These 9 Cute New England Towns

These idyllic New England towns are about to get a whole lot more expensive.

By Laura Gesualdi-Gilmore

Edited by Lauren Wellbank

Updated March 29, 2025

If investing in real estate is part of your plan to build wealth, picking the right rental market is key. Even though people often think of major cities like New York or Los Angeles when they think of fool-proof investment opportunities, there are many cities around New England that are prime for investing.

Real estate professionals are predicting that prices will spike (or continue to rise) in these cities around the region, making them key areas for investors looking for big rental demand, and important places to keep an eye on if you're looking for a new rental to call home.

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Burlington, Vermont

Rent prices have already increased in this Vermont hub. According to some estimates, folks are paying an average of $150 a month more in 2025. And, it doesn't look like things are going to slow down anytime soon.

"Burlington has turned into a creative and entrepreneurial hub that has resonated with younger residents seeking quality of life and the vibrancy of a community," Michael Elefante, real estate investor and co-founder of Home Team Vacation Rentals says of the jump.

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Cambridge, Massachusetts

Renters flock to this New England town because of the easy access to top of the line education facilities. "Cambridge still reigns as a top choice thanks to its proximity to world-class schools and industries," says Elefant.

The average rent price in the city, which sits across the river from Boston, is more than $3,500, making it a sound choice for investors looking for a steady stream of renters.

Enfield, Connecticut

Located up north near the Massachusetts border, Enfield has many draws for residents, like a thriving downtown and a picturesque landscape for outdoor enthusiasts.

Not only that, but Joel Efosa, real estate investor and CEO at Fire Cash Buyer, says it is a smart move for buyers looking to invest as well thanks to a major revitalization effort currently pouring millions into revamping the town. "This means jobs will be coming, and more housing will be needed," Efosa says.

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Manchester, New Hampshire

Manchester city skyline and clear blue sky

Manchester is another charming New England town that offers a steady stream of renters as its home to a number of college and university campuses, including the University of New Hampshire at Manchester.

The area gives residents access to a thriving metropolitan space as well as mountains, forests, and the vast natural beauty New England is known for — plus, rent prices have been trending up since the start of 2025, which means anyone looking to move here may want to make the jump before them climb any higher.

Middletown, Connecticut

"Middletown is another town investors need to keep on their radar," Efosa says. "They also have a redevelopment plan which aims to revitalize the town."

Even without major upgrades, Middletown is a delightful New England gem with a lively Downtown Main Street packed to the brim with great dining and entertainment options for those hoping to make a move. With rent prices on a steady incline since 2025, would-be renters may find themselves priced out of the market by the end of the year.

Newport, Rhode Island

Zillow says the average rent in Newport is around $3,800 and climbing. That seems to be thanks to the town's lively summer tourist population. "Newport's mix of culture and coastline remains desirable," Elefante notes.

But, for those who want to live in this cute New England town full time, you may be able to wait out the skyrocketing prices by holding off on making a move until after the summer rush has died down.

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Pittsfield, Massachusetts

Pittsfield has a lot to offer, from stunning natural beauty to thriving arts and dining scenes.

The housing market is quite competitive — and while the average home price currently stands at a reasonable $295k, home prices spiked over the past year, and rental prices have followed suit.

Portsmouth, New Hampshire

Portsmouth offers a coastal appeal that draws visitors and renters with its picturesque and lively historic downtown, beautiful waterfront, and array of dining and entertainment options.

Home prices in Portsmouth tend to be high, but investors may be interested to know that Redfin's data shows that the area has seen a 7.6% drop from last year. That information, combined rental rates that continue to climb, may make this the perfect location for any investors looking to turn a profit by renting out a property here.

Worcester, Massachusetts

Reports have shown that rent prices in Worcester have climbed quite high in recent years. The demand is partially due to a thriving college community — but Worcester has plenty of other perks to offer potential buyers and residents as well, like stunning parks, lakes, and an array of dining options.

That makes it an appealing option for renters, which is reflected in the shrinking supply and increased prices in the area.

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Bottom line

For the savvy buyer, investing in real estate — particularly in areas where rental demand is high — is a solid way to set yourself up to withstand economic downturns or develop additional income streams.

Of course, if you've always dreamed of moving to a cute New England town so you can enjoy the idyllic sights, you may want to use this list to figure out which areas could quickly move out of your price range if rental prices increase as predicted.

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