Rhode Island Housing Market: Home Prices & Trends

Overview

Supply

Rhode Island Housing Market Overview

Rhode Island’s housing market is experiencing a strong surge, with home prices increasing by 9.6% year-over-year as of January 2025. The median home price in Rhode Island is now $504,600, reflecting the ongoing demand in the market. Along with price growth, the number of homes sold also rose by 8.0% YoY, showing a healthy level of market activity. In January alone, 702 homes were sold, much more than the 650 sold in January 2025.

To understand the pace of the market, we can look at the median days on the market. Homes in Rhode Island are now spending an average of 38 days on the market, 3 days longer than last year. This slight increase suggests that while the market is still highly active, buyers may take more time than in previous years to make decisions. Rising prices, increased sales, and steady demand are now shaping Rhode Island’s housing market trajectory.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: You get less negotiation power as the median days on the market are just 38 days. Moreover, home prices are up 9.6%, making it harder to find cheap houses for sale in Rhode Island. So whether you’re looking for a condo in Providence or a single-family home in Warwick, you must watch out for competition among buyers. You can buy a house if the competition is low and home prices drop.
If You're a Seller: If You’re a Seller: You have strong negotiation power, as the median days on the market are just 38 days. Moreover, home prices are up by 9.6%, making it an ideal time to sell.

Rhode Island Housing Supply

Rhode Island's housing supply is growing moderately, with a 3.6% increase in homes for sale YoY in January 2025. Currently, there are 2,189 homes available for sale in the state. The number of newly listed homes has also risen by 3.8%, with 802 new listings in January. The market leans towards sellers, with only 2 months of supply. Fewer months of supply indicate a seller’s market, meaning demand is outpacing inventory.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: The number of homes for sale is increasing only modestly, leading to more competition. Inventory has grown by 3.6% but still falls short of meeting demand, benefiting sellers. With just a 2-month supply, the market strongly favors sellers. You will encounter intense competition and fewer options and may need to move quickly to secure a home.
If You're a Seller: You have a strong advantage in the market with only 2 months of supply as demand continues to outpace inventory. With rising prices and low inventory, it’s a seller's market, meaning you’re more likely to receive multiple offers. However, you need to act fast, as the supply may increase, which could slightly reduce the competitive edge. Focus on staging and effectively marketing your home to attract the best offers.

Rhode Island Housing Demand

The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.

In January 2025, 40.3% of homes in Rhode Island sold above the list price, showing strong competition despite a slight dip from last year. Price drops increased to 16.8%, up from 15.0% last year. Still, homes are selling close to asking price, with a 99.5% sale-to-list ratio.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: The current Rhode Island housing market has a few metrics that favor you. 16.8% of homes with price drops suggest there might be more opportunities for you to negotiate. However, 40.3% of homes still sell above the list price, indicating strong competition. Be prepared for a competitive market, but keep an eye on potential price reductions.
If You're a Seller:You'll make a good profit if you sell now. With a 99.5% sale-to-list price ratio and high demand, the negotiation power still lies with you, although there’s a slight decrease in the premium over the list price. The 40.3% of homes selling above list price shows strong buyer competition, though the increase in price drops (16.8%) suggests some flexibility in pricing. If you list your home now, you'll likely experience strong demand.

Is it a Buyer's or Seller's Market in Rhode Island?

Strong
Buyer

Buyer

Balanced

Seller

Strong
Seller

Buyer’s Market

Seller’s Market

Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.

Is it a Buyer's or Seller's Market in Rhode Island?

As of January 2025, home sellers in Rhode Island have the advantage due to rising prices and limited supply. Home prices have increased by 9.6%, and there are only 2 months of supply, signaling demand continues to outpace inventory. The 40.3% of homes selling above list price suggests that buyers compete for available properties, giving sellers leverage.

The median days on the market, currently 38, still favor sellers, although this is a slight increase from last year. The 99.5% sale-to-list price ratio shows that homes in RI sell very close to their asking price, indicating seller dominance. While the 3.6% rise in new listings may provide some additional options for buyers, the current market trends, including high demand and limited supply, firmly position real estate in RI as a strong seller’s market.

Rhode Island Housing Market Insights

The Rhode Island housing market is highly competitive compared to the nationwide market. Home prices in Rhode Island are rising faster, with a 9.6% year-over-year increase. The median home price in Rhode Island ($504,600) is higher than the national median price of $418,489, reflecting the state’s strong demand for housing.

Rhode Island’s housing supply trend indicates limited options for buyers. Currently, there are 2,189 homes for sale, and the average months of supply is just 2 months. This tight inventory favors sellers, especially as homes sell faster and at closer-to-list prices. Some housing markets in Rhode Island, like coastal areas, experience heightened competition, where homes sell quickly and often above list price. However, predictions for 2025 suggest a balanced market may emerge as new listings increase. Overall, Rhode Island’s housing market favors home sellers. If you're buying, be ready for competition and higher home prices.

Nationwide Migration Trends

According to the latest US census data, Rhode Island has a balanced migration pattern. Almost an equal number of new residents moved in and out of the state. Most new homebuyers arrive from Massachusetts and Florida. Cities like Providence and Newport County welcomed a major chunk of new residents.

People move to Rhode Island for its coastal beauty, vibrant arts scene, excellent education, and historical charm. The state also offers a thriving job market and a high quality of life, blending urban and suburban living.

Frequently Asked Questions

How have home prices changed in Rhode Island over the past year?

Rhode Island’s median home prices have continued to rise over the past year, driven by strong demand and limited inventory. The median house price in Rhode Island has increased by 9.6%, with many areas seeing steady price growth. To know your home’s worth, use our free home value estimator.

Are Rhode Island property values dropping?

No, home prices in Rhode Island aren't dropping broadly, but there are slight shifts in local trends. Statewide prices rose 9.6% YoY in January 2025. While some homes are selling above the list price, the number of areas with price drops (16.8% of homes) is also increasing. Experts predict steady growth, though the increased homes in Rhode Island for sale may moderate prices in overvalued areas.

What’s the average home price in Rhode Island?

The average home price in Rhode Island varies depending on location, size, and market conditions. It typically ranges from $457,000 for condos to $506,400 for single-family homes.

What are the real estate market predictions for Rhode Island in 2025?

The Rhode Island housing market is expected to remain competitive in 2025, with continued price growth, though at a slower pace. The demand for homes may stay strong due to limited supply and rising population, but higher mortgage rates could temper sales and reduce buyer affordability. This would lead to a more balanced market by the end of the year.

Is now a good time to buy or sell a home in Rhode Island?

You must check for real estate trends in RI regarding housing prices and inventory. Sellers can benefit from high demand and rising prices. However, if the mortgage rates are stable and there are more than 6 months of supply, that’s the best time to buy a house in Rhode Island.

How does Rhode Island’s housing market compare to the national market?

Rhode Island housing surpasses national performance through substantial price gains and competition. Limited supply and high demand in Rhode Island drive market prices above national averages.

What are the steps to buy an RI home?

The steps to purchasing a house in Rhode Island must start with a clear budget and mortgage pre-approval. Buyers should then search for houses for sale in Rhode Island, submit offers, secure loans, and complete the closing process.

How can I list RI houses for sale?

You can list your home for sale with a Flat Fee MLS Rhode Island listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀

What is the average mortgage rate for buyers in Rhode Island?

The average mortgage rate for buyers in the Rhode Island real estate market fluctuates between 6.25% and 6.90%. It depends on the market and the borrower's credit score. Always check current rates with lenders.

What is the cost of living in Rhode Island?

The cost of living in Rhode Island is 10.5% higher than the national average. The average housing cost is 114.6. You can check any region’s cost of living using our free Rhode Island cost of living calculator.