Is the cost curve finally starting to bend on the soaring cost of housing in Rhode Island?
Answering that question will take more time, though the Rhode Island Association of Realtors reports that year-over-year prices fell in May, for the first time since January 2017.
The $500,000 median price for a single-family home remains $75,000 higher than what it was even three years ago. That poses an obstacle for many would-be buyers to home ownership.
The Realtors nonetheless reported a 2.5% drop in year–over-year prices from May 2025.
Closed sales fell by 19.8% from the previous year. Inventory rose by 2.5%.
These changes come after the state has spent more than $600 million to develop more housing, although questions remain about the return on the state’s approach.
“We’re seeing homes stay on the market a little longer and less sales activity than we did a year ago,” Michael Pereira, president of the Realtors’ association, said in a statement. “Inflation and economic concerns are weighing on people, and it appears that more prospective buyers are taking a wait-and-see approach.”
That has meant more supply on the Rhode Island market.
“As a result, active buyers are gaining a little more negotiating power,” Perreira said. “Keep in mind, the number of homes for sale is still extremely low so we’re not anticipating a drastic reversal in the market, but the increased supply is a good sign.”
Rhode Island has proved attractive to out of town buyers since median home prices here are less than in Connecticut and Massachusetts. But after a decades-long slump in housing starts, Rhode Island home prices have crept closer to those in neighboring states.
