Every week, I have conversations with buyers, sellers, investors, lenders, attorneys, and fellow brokers across Rhode Island. While no one has a crystal ball, a few themes continue to surface that I believe will define our housing market this summer.
Earlier this month, I had the opportunity to travel to Washington, D.C. alongside fellow members of the Newport County Board of Realtors and the Rhode Island Association of Realtors for the NAR Legislative Meetings. During our time on Capitol Hill, we met with Senator Jack Reed and Senator Sheldon Whitehouse to discuss the housing challenges facing Rhode Islanders and the importance of expanding housing opportunities across our state. We had productive conversations about affordability, homeownership, infrastructure, and the barriers to creating new housing.
While there is no single solution, one message was consistent throughout our meetings: thoughtful, well-planned housing development will be essential to the long-term success of our communities. Increasing housing opportunities while respecting the unique character of Rhode Island’s cities and towns is one of the most important investments we can make for future generations.
The national headlines often focus on mortgage rates or home prices, but the reality is far more nuanced. Real estate is local, and here in Rhode Island, I believe these three key storylines will stand out above the rest this summer season.
1. Home Prices Continue to Hold Despite Slower Sales
At first glance, this might seem contradictory.
Rhode Island is experiencing one of its slowest years for single-family home sales in more than 15 years. Fewer homes are changing hands, yet prices have remained remarkably resilient. The statewide median single-family home price now sits at approximately $535,000.
Limited inventory continues to support pricing. There simply are not enough homes available to meet demand. While the bidding wars of 2021 and 2022 have become less common, buyers who need a home are still competing for well-priced, move-in-ready properties. Families continue to grow, people relocate for work, retirees downsize, and many choose to move closer to loved ones. Life doesn’t stop because interest rates are higher. At the same time, many homeowners are choosing not to move unless they absolutely have to, creating a bottleneck that continues to limit resale inventory.
The market has become more balanced than it was a few years ago, but desirable homes still attract strong interest when they are priced correctly and presented well. Transactions have also become far more delicate over the past two years, with buyers taking a much more measured approach. One trend I’ve consistently observed is that today’s buyers are increasingly work-averse. The days of enthusiastically buying the worst house on the best street and pouring sweat equity into a renovation have largely faded.
At today’s price points, buyers expect homes to be move-in ready.
2. Affordability Has Become the Defining Issue
If there is one word that best describes today’s housing market, it is affordability.
The cost of buying a home today is dramatically higher than it was just five years ago. When you combine higher purchase prices with rising insurance premiums, property taxes, construction costs, utilities, and everyday maintenance, purchasing a home is only the beginning of the financial commitment.
Almost every household is feeling the effects of higher costs. Groceries, fuel, insurance, and everyday living expenses have all increased, and housing is just one piece of a much larger financial picture.
I also spend a great deal of time with friends and clients in Newport County’s hospitality and hotel industry. While the summer season remains active, many have shared that bookings are slightly softer than previous years. Restaurants are busy and hotels are welcoming guests, but consumers appear to be spending more intentionally than they have in recent summers.
That same mindset carries into real estate. Many buyers today can qualify for a mortgage, but they’re asking a different question: Can we comfortably afford this payment while maintaining the lifestyle we want?
That’s a healthy shift. Purchasing real estate should fit comfortably within a family’s broader financial goals, not stretch them beyond their limits or commit them to the golden handcuffs of homeownership.
3. Affordability Will Not Improve Without More Housing
This is a simple reality and perhaps the most important conversation we need to have as a state.
Many people hope home prices will simply fall enough to solve Rhode Island’s affordability challenges. While modest market corrections are always possible in any economy, lasting affordability depends on increasing housing supply.
Rhode Island has not built enough housing to keep pace with demand. Years of underproduction, limited developable land, lengthy approval processes, and increasing construction costs have created a structural shortage that cannot be solved overnight.
Creating additional single-family homes, condominiums, workforce housing, adaptive reuse projects, and thoughtfully planned mixed-use developments will be essential if we hope to improve affordability over the long term and provide more opportunities for Rhode Islanders to remain in the communities they love.
As a member of the Newport Comprehensive Plan Advisory Committee, housing has become one of the most important, and at times most polarizing, conversations we’re having. While there have been encouraging approvals for adaptive reuse projects and new housing developments, the pace of construction still falls short of the housing needs within our local communities.
As we move through the summer market, my advice remains unchanged. Whether you’re buying or selling, successful real estate decisions are rooted in preparation, realistic expectations, and local expertise.
Markets will always fluctuate. Interest rates will rise and fall. Consumer confidence will ebb and flow. Yet Rhode Island continues to attract people who want to build their lives here. National attention, a thriving tourism economy, easy access to Boston and New York, and an exceptional quality of life continue to make our state an attractive place to call home.
Housing has always been about more than buying and selling real estate. It shapes our workforce, our local economy, and the long-term health of our communities. Expanding housing opportunities while preserving the character that makes Rhode Island special will remain one of our state’s most important responsibilities for years to come.
For more information on the local market, or to schedule your confidential consultation, please reach out directly. You can reach me at 401-241-1851 or TylerB@resultswithremax.com.
