Warwick, R.I. – August 21, 2025 -- Rhode Island’s single-family home market showed some stabilization in July as the supply of homes for sale continued to grow. Data released by the Rhode Island Association of Realtors highlighted a slight .3% drop in sales activity of single-family homes and a two percent gain in the median price year-over-year to $505,000. The July numbers also indicated a slow but steady gain in the supply of homes for sale.

“It’s great to see an uptick of homes hitting the market here in the Ocean State.  Summertime is historically when we see the most homes for sale, but it’s encouraging to see we’re heading in the right direction,” said Chris Whitten, president of the Rhode Island Association of Realtors. “We typically measure the housing market by the number of months it would take for the total supply of homes on the market to be sold at the current rate of sales. In July, Rhode Island had a 2.7-month supply compared to the 1.5-month supply seen at the beginning of the year.  Don’t be fooled, we are still in a seller’s market with home sellers mostly in the driver’s seat.  But for the moment, buyers are enjoying a few more options with a little less competition.”

A five- to six-month supply is considered to be a housing market balanced between supply and demand. Rhode Island’s housing supply had diminished to less than a one-month supply in the early months of 2022.

In other sectors of the market, trends varied. There were 12.9% fewer condominium sales than in July 2024 and median condo price also dropped to $372,500, a 5.7% decline.

While sales of multifamily homes also dropped, falling 11.3% from 12 months earlier, the median price of July sales rose to $618,000, a 12.4% annual gain and the first time the median price of any residential property type in Rhode Island topped $600,000.

Both sectors had an increase in listings in July. The Realtor data showed a 29.3% increase in condominiums listed on the market for sale, resulting in a 2.9-month supply. Multifamily home inventory made even stronger gains, growing by 44.2% year-over-year. However, strong sales activity left only a 1.7-month supply on the market, the cause of the sector’s elevated price gains.

“Investor demand is driving up the prices of multifamily properties. What was once a great investment for first-time buyers is now a hot commodity in a competitive market. As a result, some buyers may end up living in a desired property, but unfortunately, as a tenant, rather than an owner. It’s critically important that we continue to have the conversations and make the adjustments necessary to create enough housing to temper the demand that is currently shutting too many Rhode Islanders out of the market,” said Whitten.