Warwick, R.I. – October 20, 2025 – After falling year over year in July and August, sales activity of single-family homes jumped in September, rising 19.5% from September 2024. At the same time, the median sales price climbed 9.3% to $530,000.

Other segments of the market also experienced a rise in closed transactions last month. Condominium sales were up 23.6% and multifamily home sales rose 20.8%. Unlike the single-family home market, both sectors saw a slight decrease in median price. The median price of condominiums fell 2.3% to $417,450, and the multifamily home median saw a drop of .8%, falling from $595,000 in September 2024 to $590,000 last month.

The Rhode Island Association of Realtors, which releases the sales data of all Realtor-assisted sales each month, cited multiple factors in the hike in sales activity. A strong stock market, increased home equity and lower mortgage rates continued to help encourage sales, but an increase in the sales conveyance tax which was enacted on October 1^st, was likely the primary factor according to the association. The Realtor Association shared that data shows a 31% drop in sales in the two weeks following the October 1 deadline compared to the same time last year.

“The Rhode Island Association of Realtors warned of the harm a 63% increase in the sales conveyance tax on real estate would do to our housing crisis here in the Ocean State, where single-family home prices have skyrocketed higher than any other state. We understand the dire state of Rhode Island’s budget was why the tax increase happened, but balancing the budget on the backs of our already struggling housing market doesn’t help,” said Rhode Island Association of Realtors 2025 President, Chris Whitten. “Real estate is such a big driver of our economy here in Rhode Island. Increased taxes reduce sales, and fewer sales mean less money flowing into the economy in terms of all the products and services related to moving to a new home. When an industry brings in nearly 20 percent of the gross state product, unintended consequences need to be factored in to tax decisions. We will continue to be at the forefront of all conversations that affect Rhode Islander’s affordability, housing inventory and ability to obtain generational wealth.

According to the RI Housing Fact Book, a report released Friday by Housing Works RI at Roger Williams University, wages have grown by less than 30 percent but housing costs in the Ocean State have increased by over 60 percent since 2018.  “More recently, Rhode Island’s single-family home prices have jumped higher and faster than anywhere else in the country, and rental increases are currently the steepest in New England,” the report stated.