Warwick, R.I. – September 19, 2025 – Rhode Island’s housing supply continued to grow in August, a promising trend seen in sales statistics released by the Rhode Island Association of Realtors today. According to Realtor data, all single-family homes on the market would be sold in 2.8 months if no new properties were listed. While that period is just half the time that typically indicates a market balanced between buyers and sellers, 2025 could be the first year that shows consistent growth in housing supply with no monthly year over year declines since at least 2015, the year the Association added supply indicators to its monthly recordkeeping.

The median sales price of single-family homes sold last month rose 4% to $510,000, while the number of sales fell 4.6% from August 2024. Pending sales – those under contract but not sold by the end of August – also fell 2.3%, which is typically an indication that sales activity would continue to moderate heading into fall. However, news of the Federal Reserve’s rate cut to its benchmark interest rate could eventually enhance affordability, bringing more prospective buyers back into the market.

In contrast to the single-family home market, condominium sales activity skyrocketed, rising 26.8% in August. Though the median price grew by 21.2% to $400,000, the condominium market has historically offered lower-priced options to those aspiring to get a foothold in homeownership. 

“News of the Fed’s rate cut is certainly promising for buyers here in the Ocean State, particularly with all indications that we could see the rate reduced two more times this year. That should help prospective homebuyers jump off the sidelines and into the market. It may also nudge homeowners clinging to their low mortgage rates to finally make the move to pop their home on the market and find a new home that fits their current needs.  Could this provide a bit more housing inventory?  Yes.  But that also puts more buyers into the buyer pool. At the end of the day, the housing shortage can really only be fixed by substantially increasing supply or reducing demand. If we don’t see consistent growth of our housing inventory here in Rhode Island, we’ll continue to see college grads, young families and empty nesters look elsewhere for more affordable options,” said Chris Whitten, President of the Rhode Island Association of Realtors.

Sales activity showed no change from year to year in the multifamily home market though pending sales dropped 12.7%. Although there were 38.1% more multifamily homes on the market last month than in August 2024, inventory remains inadequate to meet demand, resulting in monthly median prices that have not dropped year over year since December 2014. The August median price of multifamily homes was $580,000, 5.7% higher than 12 months prior.

“Looking ahead, we’re hopeful that reduced rates will help our affordability issues. But more buyers in the market with little change to our housing stock will only mean higher home values. We can’t overlook the elephant in the room, that’s why we will continue to work together with our policymakers on reforms that encourage the creation of new, sensible housing,” said Whitten.