WARWICK, R.I. – 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, 7681 single-family homes sold in the Ocean State in 2024, a 3.3% increase from 2023. Stunted by rising prices however, sales continue to fall far behind 2019 when 11,013 homes sold. In the five years since then, the median price climbed 66.7%. Last year alone, the 2024 median price of $475,000 represented an 11.8% increase from 2023.

Chris Whitten, President of the Rhode Island Association of Realtors explained that demand from out-of-state buyers remains elevated. “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 into the Ocean State.”

Last year, nearly one in four residential sales involved out-of-state buyers. For sales of $1 million and over, the figure rose to 42%.

The multifamily home market also saw gains in sales and median price. Closed transactions rose 3.2% from the prior year and investors interested in the hot rental market helped push the median price up 15.1% to $541,000, the largest annual increase of all residential housing types last year. First-time buyers and families also sought multifamily properties as a path to home ownership.

Rhode Island’s condominium sector experienced a 7% increase in sales, though the median price of sales dropped slightly to $355,000 from $357,000 in 2023.

“It’s clear our housing market remains extremely out of balance and the cost of owning a home here in Rhode Island has reached unprecedented heights. 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. Sadly, the outcome of many of these bills are making the process more difficult to obtain the American Dream and detrimental to fixing our home affordability crisis,” said Whitten.

Based on data as of third quarter last year, each Rhode Island home sale pushed $148,000 back into Rhode Island’s economy through industry related income, expenditures related to home purchases and new home construction. The real estate industry accounted for $14.9 billion or 18.8% of the gross state product according to a report generated by the National Association of Realtors.

“In addition to the enormous personal toll a lack of housing takes on our citizens, it doesn’t make sense to do anything that makes the process harder and creates less affordability for one of the state’s biggest economic drivers,” said Whitten.

Source: Rhode Island
Association of REALTORS^®