If you’ve been trying to make sense of the housing market this year, you’re not alone. 2025 has been a year of contradictions. Prices hit new highs even as inventory finally—finally—started to improve. Buyers are catching their breath, but sellers still have the upper hand. It’s progress, just not the kind that makes headlines.
Single-Family Homes: Key Trends
The median sale price for single-family homes climbed through most of 2025, landing at $530,000 by September—a 9.3% jump compared to the same time last year. That makes this yet another record-setting year for Rhode Island real estate, though the pace has cooled from the frenzied growth we saw during and immediately after the pandemic.
What’s different this time around is inventory. At the start of the year, there was only about a 1.5-month supply of homes on the market—essentially nothing. This meant Spring buyers were competing with multiple buyers, offer strategies included appraisal gaps, reduced or waived inspections, and more of the same pain we've experienced during the Spring market of the past few years. But by late summer, we finally caught a break with increased inventor-- it doubled to 2.7–2.8 months. That’s still well below the six months we’d need for a more balanced market, but it’s a welcome change after years of scarcity.
June saw the year’s high point, with a median sale price of $520,000, up 5.3% from 2024. That increase came alongside a 20% boost in listings, proof that some homeowners are finally deciding to make a move. It’s the first time in several years that we’ve seen steady growth in inventory from spring through summer—and that alone changes the feel of this market.
Here’s what that means for you: buyers finally have a bit more breathing room. The bidding wars that defined 2021–2023 are easing in some markets, and there’s space to negotiate again. I've seen that especially during this Fall market. Sellers, though, shouldn’t confuse “more homes” with “too many.” If a property is priced well and presented beautifully, it still moves quickly—especially in that $400,000–$700,000 sweet spot.
Inventory Constraints and Market Dynamics
For the first time in nearly a decade, we saw consistent year-over-year increases in housing supply. Single-family listings rose 20–29%, condos jumped about 30%, and multifamily inventory spiked as much as 60% mid-year.
That sounds like a big win—and it is—but perspective matters. Even at 2.8 months of supply by September, Rhode Island still sits far below the national average. The market may be loosening, but we’re nowhere near balanced.
Homes that are priced correctly are still selling quickly. Overpricing, on the other hand, can be tricky. Buyers are more informed now. They have better tools, more data, and less fear of missing out. If a property doesn't move within the first two weeks we know that the property is over-priced. The mistake is for sellers to be emotionally attached to a price--the market will determine the market value, no amount of wishing or hoping will change that. What we can control is how the property is presented and that comes with preparation. Properties that need work will be the most harshly judged in our current market and that will impact your bottom line.
What About Multifamily Homes?
Multifamily homes told their own story in 2025—and it’s a complicated one. Prices climbed from $550,000 at the start of the year to $618,000 by July, a 12.4% increase year-over-year. That’s impressive growth, especially considering how much the inventory picture shifted over the same period.
Listings in this category rose noticeably throughout the year. The most dramatic change came in June, when the number of multifamily properties on the market jumped 62% year-over-year—the largest surge recorded in recent history. By July, inventory growth eased to 44%, and by August, it settled around 38% higher than the previous year. In other words, the supply expanded but didn’t flood the market. Even with more listings available, there were only about 1.7 to 2.5 months of inventory on the market at any given time—still far short of what’s needed for balance.
What’s driving this? A mix of opportunity and fatigue. Some long-time landlords decided to sell, citing increased costs, tightening regulations, and new state mandates for rental compliance. At the same time, investor and multi-generational buyer demand remained strong, keeping pressure on prices even as supply rose.
That said, this segment has become tougher for first-time buyers hoping to “house hack.” It's just harder to make the numbers work, you really have to be clear about your expectations and goals. Between rising purchase prices, stricter lending standards, and regulatory costs, the math doesn’t pencil out as easily as it once did. For serious investors or owner-occupants, due diligence is everything—understanding your rent roll, upcoming capital expenses, and true operating costs will make or break the deal in this environment.
Condos: The Entry Point Market
Condos were all over the map this year—literally and figuratively. Prices swung from $417,500 in June, dropped to $372,500 in July, and rebounded to $400,000 in August. It’s a reflection of how sensitive this segment is to rates and fees.
For many first-time or relocating buyers, condos are still the best entry point into homeownership in Rhode Island. They’re often more affordable than single-family homes, but “affordable” is relative these days. HOA fees, maintenance costs, and special assessments can make a big difference in the true cost of ownership.
That said, well-kept, well-managed condos—especially in central or coastal areas—remain in high demand. They’re appealing to downsizers who want less upkeep and to out-of-state buyers looking for a manageable piece of the Ocean State.
News That Makes an Impact
Several big developments shaped Rhode Island’s market this year—and they’ll continue to influence what happens next.
The October 1st RI conveyance tax increase, a 63% hike, sent shockwaves through the market. Closings surged 19.5% in September as people rushed to beat the deadline, followed by a 31% drop in the two weeks that followed. It was a stark reminder of how fragile market momentum can be when policy shifts midstream.
Then there was the Federal Reserve’s rate cut in September, which offered a small dose of relief for buyers. Lower rates make monthly payments more manageable, but they also tend to bring more people back into the market. If inventory doesn’t continue to grow, we could see another round of intense competition next spring.
And while other states have started to catch up with housing production, Rhode Island remains behind. We still have one of the lowest new-construction rates in the country. Until we tackle that issue, supply will continue to lag far behind demand.
Lastly, migration patterns are reshaping who’s buying here. Out-of-state buyers made up 23.5% of all transactions in the first half of 2025, and nearly half (45.8%) of all $1 million-plus purchases. Add in the fact that wages have grown less than 30% since 2018 while housing costs have jumped more than 60%, and it’s no wonder local affordability remains a pressing challenge.
A Market Unlike Anywhere Else
It’s worth pointing out that what’s happening in Rhode Island is not what’s happening in much of the country. Across many regions, rising inventory has cooled prices and slowed sales. Some areas are shifting squarely into Buyer’s Market territory.
Not here. Our small size, tight supply, and steady in-migration keep prices elevated and demand strong. That said, we still see the usual seasonal shifts—fall and winter buyers tend to have more leverage than those competing in the spring and summer. Fewer active buyers this time of year can mean more negotiating room and a higher likelihood of accepted offers.
If you’re serious about buying, this is the window to take advantage of before activity ramps back up in early 2026.
Actionable Insights for Buyers and Sellers
For Buyers:
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You’ve got more options, but timing still matters. Inventory may be up, but well-priced homes are still moving fast. If you find a fit, act.
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Condos are often the gateway. They’re accessible, but always factor in monthly fees before deciding affordability.
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Pay attention to rates. Slight rate drops can reignite demand quickly, so preparation is key—get pre-approved and stay ready to move.
For Sellers:
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You still have leverage—but price strategically. Buyers aren’t desperate anymore. They’re discerning.
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Think about timing. If you plan to sell in 2026, keep an eye on policy shifts and seasonal trends to position your home at the right moment. Get in touch with me sooner than later!
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Presentation matters more than ever. Staging, photography, and condition now play a bigger role in achieving top dollar.
A Market to Watch in 2026
2025 was a turning point—not dramatic, but steady. Rhode Island’s market is still competitive, still expensive, but finally showing signs of balance. Inventory is inching upward, prices are holding firm, and buyers are re-entering the market with a bit more confidence.
At the same time, we can’t ignore the affordability problem or the construction gap that continues to define this state. Without new housing stock, prices will remain under pressure, and the “seller’s advantage” will persist into 2026.
But here’s the encouraging part: with more data, better systems, and smarter planning, buyers and sellers can both win in this market. The key is preparation. I'm sure I sound like a broken record but I can't overstate the importance of getting a plan in place!
Smooth, successful real estate transactions don’t just happen—they’re built through planning, communication, and strategy. Whether you’re buying or selling, the more lead time you give yourself (and me!), the better your results. That means understanding your numbers, lining up financing, addressing property prep, and creating a game plan that aligns with your goals.
If you’re thinking about making a move in 2026, now is the time to start those conversations. Let’s sit down, look at your timeline, and create a plan that positions you ahead of the curve. Rhode Island’s market isn’t slowing down anytime soon—but with the right strategy, you can make it work for you.
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