Sales activity in Rhode Island’s housing market rose last year for the first time since 2020. According to data released today by the Rhode Island Association of Realtors, 7,681 single-family homes sold in the Ocean State in 2024, marking a 3.3% increase from 2023. Yet, sales continue to lag far behind the pre-pandemic numbers recorded in 2019, when 11,013 homes were sold. During this period, median home prices have surged by 66.7%, with the 2024 median price reaching $475,000—a notable 11.8% increase compared to 2023.
Chris Whitten, President of the Rhode Island Association of Realtors, attributed this uptick partially to elevated demand from out-of-state buyers. “The pandemic put Rhode Island on the map at a time our state was already short on housing supply. With the ability to work remotely, we’ve seen thousands moving to the Ocean State,” he noted. Last year, nearly one in four residential sales involved out-of-state buyers, and the figures were even higher for luxury markets, with 42% of homes sold for $1 million and over falling to this demographic.
Alongside the single-family home market, Rhode Island’s multifamily home sector has also experienced gains. Closed transactions rose by 3.2% from the previous year, with rising investor interest driving the median price up by 15.1% to $541,000—the largest annual increase among all residential property types last year. First-time buyers and families have also turned to multifamily properties as a more affordable route to homeownership.
Rhode Island’s condominium market saw sales increase by 7%, though the median price dipped slightly, falling from $357,000 to $355,000. Whitten pointed out the paradox at the heart of the state’s housing situation: “It’s clear our housing market remains extremely out of balance and the cost of owning a home here has reached unprecedented heights.” He highlighted the urgent need to increase housing supply but cautioned against well-intentioned legislative measures, which may unintentionally exacerbate affordability issues.
“Obviously, we need to get more shovels in the ground to sensibly increase our supply, but just as important, the full ramifications of proposed laws on our housing market must be understood. While many bills are well intended, the effect of decreased home affordability from added fees, taxes, and mandates can add up to thousands in a typical transaction,” said Whitten. His remarks underline the need for considering long-term impacts as policymakers strive to address housing shortages.
Based on data collected as of the third quarter last year, each sales transaction contributed approximately $148,000 back to Rhode Island’s economy, including industry-related income and expenditures associated with home purchases and new construction. The real estate industry plays a significant role, accounting for $14.9 billion or 18.8% of the state's gross product, according to the National Association of Realtors.
Whitten summed up the urgency surrounding the housing market's challenges: “...the enormous personal toll a lack of housing takes on our citizens doesn’t make sense to do anything...that creates less affordability for one of the state’s biggest economic drivers.” His comments reflect the perspectives of many stakeholders invested in Rhode Island’s housing future.
Overall, as Rhode Island’s housing market undergoes this recovery phase, the interplay between rising demand, increasing prices, and legislative action remains complex. The state is at a crossroads, balancing the need for affordable housing with the interests of out-of-state buyers and sound economic growth. While the trend indicates improvement, it also highlights persistent challenges for the state's real estate sector moving forward.