Westerly, RI

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  • Performance
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Key Performance Metrics

Market snapshot

Performance indicators for the Westerly short-term rental market based on reliable data.

Listings

128 / 329

Reliable / Active

Cap Rate

5%

Middle-Earners Gross Yield

Revenue

$33,438

Middle-Earners Revenue

Occupancy

56%

Middle-Earners Occupancy

Home Value

$633,880

Median Home Sale Price

Top Earners

$72,288

Top-Earners Revenue

Westerly

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Westerly.

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B

Generally Investor friendly

Westerly Regulations

Westerly explicitly allows short‑term rentals in residential zones with a straightforward two‑step registration (state DBR and town annual registration via a simple portal) and no municipal occupancy caps. The main constraints are the $500 annual town fee and a town‑wide requirement for active local management, but the process is clear and enforcement appears measured with ongoing policy discussion not yet codified. Overall compliance is manageable for investors, placing the regime in the friendly tier.

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About Westerly

Westerly is a coastal town in Washington County, Rhode Island, sitting at the state's southwestern corner where Rhode Island meets the Connecticut border. With a population of approximately 18,000 residents, it carries the relaxed pace of a New England shore town paired with a walkable downtown and a long Atlantic coastline. The town is best known as the gateway to Watch Hill, a storied seaside village at its southern tip, and for its broad, family-friendly beaches. Westerly lies roughly 50 miles southwest of Providence and about 20 miles east of New London, Connecticut, making it an easy drive for weekenders from across southern New England and the New York metro area.

Watch Hill sits at the very end of a peninsula on Westerly's southern coast and is one of the most photographed villages in New England. Beyond its sandy shoreline and the landmark Ocean House hotel, the village is home to the Flying Horse Carousel, said to be one of the oldest operating carousels in the country, and to a working waterfront that doubles as a departure point for ferries to Block Island. The whole area carries the feel of a Gilded Age summer colony, with manicured lanes, boutique shops, and ocean views around nearly every corner. Watch Hill is just minutes from the center of Westerly and anchors much of the town's summer appeal.

A few miles east of Watch Hill, Misquamicut State Beach draws the bulk of Westerly's summer crowds. This roughly two-mile stretch of barrier beach offers calm surf, lifeguarded swimming areas, nearby restaurants, and evening entertainment at adjacent beach pavilions. It is a classic New England family beach, with the kind of warm sand and gentle waves that keep visitors coming back year after year. From downtown Westerly, the drive to Misquamicut is only about ten minutes, which makes it easy for vacation rental guests to come and go throughout the day.

Westerly's historic downtown offers a quieter counterpoint to the busy shoreline. Wilcox Park, a Victorian landscape at the heart of town, hosts summer concerts, a weekly farmers' market, and shaded walking paths, while the surrounding streets are lined with locally owned restaurants, antique shops, and a notable granite-trimmed public library. The downtown sits only a couple of miles from the ocean, giving visitors the rare convenience of strolling to dinner after a day at the beach. The town also preserves several 18th- and 19th-century houses that hint at its earlier history as a granite-quarrying and textile-mill center.

Together, these pieces make Westerly a natural fit for short-term rentals. The town delivers oceanfront scenery and a real summer resort atmosphere without the crowds of more famous Cape Cod or Hamptons destinations, and its compact layout means guests can walk or drive a few minutes from a quiet residential rental to a packed beach, a historic carousel, or a sunset concert in the park. With its blend of small-town New England character and shoreline amenities, Westerly appeals to summer families, off-season leaf-peepers, and coastal couples alike.

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