The State of the Rhode Island Housing Market

At the start of 2026, Rhode Island’s housing market has shown signs of a slower beginning. But the story behind the numbers is more nuanced than it may appear at first glance.

In January, 429 single-family homes sold across the state, marking the slowest start to the year since 2011—roughly a 7 percent decline, compared to January of last year. Yet from my vantage point —working daily with buyers and sellers across Newport County and coastal Rhode Island — the slowdown has less to do with waning demand and far more to do with a persistent shortage of available homes.

Inventory remains exceptionally tight, with just 1.7 months of supply statewide, well below the five to six months typically considered a balanced market. When housing supply remains this constrained, competition among buyers naturally intensifies, and prices continue to trend upward. In fact, Rhode Island’s median single-family home price reached a 7.3 percent increase year over year. This dynamic extends across other sectors of the market as well. Condominium sales declined roughly 14 percent year over year, yet the median condo price climbed more than 12 percent. Multifamily properties, long a favored investment class throughout Rhode Island, saw sales dip by nearly 6 percent while the median price rose as well.

At the same time, the broader economics of homeownership are shifting. The median age of first-time homebuyers reached 40 in 2025, up from 30 just 15 years ago, illustrating how rising costs have pushed homeownership further into adulthood. Meanwhile, the average size of new homes has declined by roughly 11 percent over the past decade, while the price per square foot has increased by approximately 74 percent discouraging homeowners from selling what they already have, and buyers who expect more for their money.

Despite these challenges, buyer demand remains very real. What has changed is the current mindset. Clients are still highly motivated, but they are also more deliberate and price-conscious. When a property is properly priced and thoughtfully marketed, it continues to move quickly. Conversely, homes that are overpriced or poorly presented are spending more time on the market and experiencing price adjustments. In today’s market, strategy matters more than ever.

Seasonality has also played a role in the slower start to the year.. Harsher winter weather this winter—something we all experienced—tends to delay new listings, as sellers wait for more favorable conditions. As we move into the spring season, I expect additional inventory to come online, which should provide buyers with more opportunities.

So How Are Buyers Winning in Today’s Market?

In a supply-constrained market, the buyers who succeed are rarely the ones who simply offer the most money. More often, they are the ones who come to the table well-prepared, highly strategic, and easy for a seller to work with.

Here are several strategies that are proving most effective right now:

1. Secure Full Loan Underwriting Early

A standard pre-approval is no longer enough in competitive situations. Buyers who complete full underwriting before making offers present themselves almost like cash buyers, providing sellers with greater certainty.

2. Move With Confidence, Not Emotion

Well-priced homes continue to sell quickly. Successful buyers are ready to act when the right opportunity arises but they do so with a clear strategy rather than reacting purely on emotion.

3. Compete on Terms, Not Just Price

While price is important, deal structure can often determine the winning offer. Flexible closing timelines, larger deposits, limited contingencies, and seller rent-back options can significantly strengthen a buyer’s position.

4. Find Opportunity Where Others Don’t

Some of the most compelling investments today are properties that may need cosmetic updates, have lingered slightly longer on the market, or sit just outside the most competitive neighborhoods.

5. Work With an Advisor Who Knows the Market Intimately

In a low-inventory environment, many opportunities surface before they ever reach the public market. Relationships, local knowledge, and access to off-market opportunities can provide buyers with a meaningful advantage.

6. Focus on Long-Term Ownership

The greatest mistake buyers make is waiting endlessly for the “perfect moment” to purchase. Historically, buyers who secure the right property and hold it long-term—particularly in such supply-constrained markets as coastal Rhode Island—tend to be the ones who benefit most.

From my experience working with clients throughout Newport and the surrounding coastal communities, the buyers who succeed today are not those trying to perfectly time the market. Rather, they are the individuals who approach the process with preparation, patience, and a well-considered strategy. And as long as demand for Rhode Island’s coastal lifestyle remains as strong as it is today, those qualities will continue to define success in this market.