WARWICK, R.I. – March 6, 2025 – The Rhode Island Association of Realtors applauds the 12-bill housing package put forth by House Speaker K. Joseph Shekarchi last week and urges other policymakers to follow his lead in addressing the current housing crisis. The 6000-member organization also calls on cities and towns to collaborate with the state and other stakeholders in making the Speaker’s proposal a reality and further asks legislators to oppose bills that would add extra housing costs for homeowners and buyers. The plea was backed by data that highlight the economic strength of the housing industry.
According to a report released by the National Association of Realtors, Rhode Island’s real estate industry accounted for approximately $14.9 billion or 18.8% of the gross state product in 2024. NAR estimated the economic impact of a typical home sale in each state based on data from the third quarter of 2024 sourced from the U.S. Census, National Association of Home Builders, Macroeconomic Advisors, the Bureau of Economic Analysis and NAR.
The report highlights the total economic impact of real estate related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance. According to the data, a typical home sale results in expenditures of $148,300 that boost Rhode Island's economy.
“Our housing supply has been on a downward slide since 2015. As a result, prices have escalated to the point where far too many Rhode Islanders have been shut out of home ownership. There are only two solutions to the problem: sensibly build supply as Speaker Shekarchi is proposing or reduce demand. Economically, it doesn’t make sense to reduce demand in an industry that puts thousands of dollars back into the economy each year,” said Chris Whitten, President of the Rhode Island Association of Realtors.
The Association also cautions that some legislative proposals regarding existing homes are imperiling housing affordability. In this legislative session, the General Assembly is debating a hike in transfer taxes on home sales, mandates on lead and radon and new taxes on home rentals, among others. “While there may be good intentions behind many of the bills being discussed at the State House, it’s important that we continue to be involved in the conversations with our legislators to help them understand the unintended consequences that could likely arise if passed as presented. We look forward to working closely with our policymakers by providing industry insight to help them identify any negative ramifications each bill could have on the little housing inventory we do have.
"We also welcome the opportunity to help Speaker Shekarchi gain passage of his housing package this year. As Realtors, we see firsthand how our housing crisis is affecting the ability to obtain the American Dream and gain generational wealth here in Rhode Island. We commend Speaker Shekarchi for all his housing efforts and look forward to making great strides this session,” commented Whitten.