We are all feeling it here in Rhode Island. Rents are climbing, homes for sale disappear fast, and it seems that no matter what you do the housing market is getting tougher and tougher. You are not imagining it. Realtor.com just labeled Rhode Island the #1 state that affordability got crushed after the pandemic. Understanding what is actually happening can help you make a smarter decision for you, your family and your future.
Here is what the numbers look like today: The median sale price for a single-family home in Rhode Island is right around $500,000, up roughly 5 to 6 percent from last year. Meanwhile, inventory remains extremely tight, with 967 homes listed statewide as of today. In many neighborhoods across Providence, Pawtucket, and surrounding communities, well-priced
properties are going for asking price or above. So the market loves those ready to move but hurts those waiting.
So is it worth buying right now? That depends on your situation, but here is the honest answer for most people: yes. Currently, renting in Rhode Island is not the safe, affordable option it used to be. Research from HousingWorks RI shows that to comfortably afford a standard two-bedroom rental with utilities, you need to earn over $60,000 a year, while the median renter incomes seem to be about $12,000 less than that. Ultimately, renting is expensive too. There are some things to consider in the equation though. The difference is that when you rent, you are building someone else’s equity. When you buy, even in a challenging market, you are building your own. On the flipside, the benefit of renting is you don’t have the extra home owning costs. Think: taxes, repairs, maintenance, insurance, saving for downpayment, and closing costs. It boils down to what you can realistically afford.
A small silver lining for home buyers is that home values in Rhode Island have held strong and continued to appreciate even as national markets slowed. Experts believe that the home you buy today, even at today’s prices, is likely worth more by this time next year. Our state is small, but is consistently in demand, but homes are undersupplied. Those fundamentals are not changinganytime soon, so if you want to buy, sit down with a real estate professional and determine if it’s the right move for you.
Whether you are renting and wondering if now is the time to make a move, or you own a home and want to understand what it is worth in today’s market, you deserve a conversation based on real data and honest guidance, no pressure, human to human. Reach out to me at to take that first step.
