Why INVENTORY is the Real Story in the RI Housing

No really, lets talk about inventory

If you’ve been wondering why home prices in Rhode Island continue to climb, here’s the short answer: inventory.

I’ve been working on a deep-dive property analysis for a home seller and came across a data point that I just had to share, because it perfectly illustrates what’s really driving our local real estate market. And I think that it helps to see that while things may be cooling on a national level, what we’re experiencing here on a local level just isn’t the same.

Let’s talk numbers for a moment and look at the data for Single Family homes for sale in Rhode Island:

May 2015: 6,516 active listings
May 2020: 3,478 active listings
May 2025: 1,547 active listings

Let that sink in. In ten years, we’ve seen inventory drop by nearly 80%. That’s not a small shift, that’s a market-altering plunge. And fewer homes for sale means more competition, higher prices, and increased pressure on both buyers and renters. Which is why I submitted an offer today that is $50k over the list price, has a $20k appraisal gap and Waived Mortgage Commitment and it still may not be strong enough to beat out the competition!

Why Legislators Keep Missing the Mark

Right now, several legislative proposals are making the rounds, claiming to solve Rhode Island’s housing crisis.

Some legislators are pushing for a hefty tax on “house flippers,” promoting it as a way to make housing more affordable.
→ WRONG. This would discourage buyers from purchasing and improving distressed properties, often homes that wouldn’t even qualify for financing in their current condition. And most buyers in our market don’t have the means (time, money, experience) to take on a distressed property. While it’s easy to scoff at “flippers” they’re a necessary part of a healthy market. And no one is going to take on the risk of a distressed property without an incentive (profit!).
Other supporters are advocating for rent control and “just cause eviction” policies, framing them as tenant protections.
→ WRONG AGAIN. These measures would reduce private investment in rental housing, drive landlords out of the market, and shrink rental availability, ultimately driving rents higher, not lower. Take a look at what’s happened in NYC with the “rent controlled” or “rent stabilized”--there are upwards of one million properties that fall into these two categories and it’s about to turn into an absolute disaster. Without the ability to raise rent to keep up with property taxes, insurance, and inflation properties can fall into disrepair. Without the ability to remove problem tenants a property owner effectively loses their rights.

I could go on. There’s a laundry list of reactionary ideas being introduced that ignore the actual problem and, in many cases, will make it worse. To stay on top of what’s happening with proposals in RI please follow (and join) Rhode Island Coalition of Housing Providers.

The core issue? We simply don’t have enough housing and RI ranks dead last when it comes to new construction permits.

What This Means If You’re a Seller

If you’re thinking about selling your home, this low-inventory market works in your favor. We’re on track for Rhode Island’s median sale price to exceed $500,000 by the end of the spring market. And despite what national headlines suggest, home values here remain strong, and they’re still rising.

That upward momentum ties directly to the lack of available housing. Until more homes come to market, prices will continue to climb.

What This Means If You’re a Buyer

I know the current market can feel frustrating--I’ve been navigating these waters since 2014 and they’ve been choppy since 2020! But here’s the thing: if your monthly payments are affordable at today’s interest rates, you’re still making a smart investment.

Home prices in Rhode Island will continue to rise, that’s just the bottom line. And with rent prices increasing, because landlords can’t keep absorbing rising costs, owning a home often offers more financial predictability and long-term stability. Don’t get me started on where my property taxes are at my Providence three family on Messer Street!

Bottom Line

This market isn’t broken because investors are flipping houses or because landlords are raising rents. It’s broken because we’ve failed to build enough homes, and we keep pointing fingers instead of implementing real solutions.

Whether you're buying, selling, or trying to make sense of the shifting landscape, I'm here to help you navigate it all.

Have questions about your home’s value or thinking about buying this year? Let’s talk.