What’s Changing in the Rhode Island Housing Market? Here’s What Buyers and Sellers Need to Know

The Rhode Island real estate market started 2025 with a noticeable shift compared to last year. While inventory remains tight, prices continue to rise across most property types, and market conditions are evolving in ways that both buyers and sellers should understand.

At Slocum Home Team, we’ve analyzed the latest data from Statewide MLS, comparing January 2025 with January 2024 to help you make informed real estate decisions. Let’s break it down.

1. Rhode Island Single-Family Market Overview: Prices Keep Climbing

The single-family home (SFM) market in Rhode Island saw higher prices and a small rebound in new listings and sales compared to last year.

📊 Key Statewide Stats for January 2025 vs. January 2024:
✔️ New Listings: 725 (⬆️ 5.99%) – More sellers are coming to market, but inventory remains historically low.
✔️ Total Sales: 463 (⬆️ 4.99%) – More buyers were able to close deals, despite affordability challenges.
✔️ Average Sale Price: $658,582 (⬆️ 8.04%) – A steady increase in home values statewide.
✔️ Median Sale Price: $465,000 (⬆️ 5.44%) – More than double the median price from a decade ago!
✔️ Average Price Per Sq. Ft.: $385 (⬆️ 8.15%) – Buyers are paying more per square foot than ever.
✔️ Average Days on Market: 39 days (⬇️ 2.5%) – Homes are selling slightly faster than last year.

💡 Takeaway for Sellers: Home values remain strong, and demand is still present, but accurate pricing is critical to attract buyers quickly.

💡 Takeaway for Buyers: Prices are still rising, so waiting may not be in your favor. With more listings coming on, competition could heat up again this spring.

2. Kent County Market Trends: Modest Growth with a Big Jump in Price Per Sq. Ft.

📍 Kent County (includes Warwick, Coventry, East Greenwich, and surrounding areas)

🔹 New Listings: 149 (⬇️ 6.88%) – Fewer sellers listed their homes, keeping inventory tight.
🔹 Total Sales: 101 (⬆️ 2.02%) – A small uptick in transactions compared to last year.
🔹 Average Sale Price: $462,237 (⬆️ 6.08%) – Home values remain on an upward trend.
🔹 Median Sale Price: $400,000 (⬆️ 1.29%) – A modest increase in the median price.
🔹 Average Price Per Sq. Ft.: $324 (⬆️ 13.29%) – The largest year-over-year jump in the county!
🔹 Average Days on Market: 34 days (⬆️ 3.03%) – Homes are taking slightly longer to sell.

💡 Key Insight:
Kent County remains a desirable area for buyers, and with prices per square foot increasing, buyers are paying more for less space than in previous years.

3. Warwick Market: More Listings, More Sales, Slight Price Correction

📍 Warwick, RI – One of the largest markets in Rhode Island saw more activity but a slight dip in prices.

🔹 New Listings: 84 (⬆️ 18.31%) – A notable increase in seller activity.
🔹 Total Sales: 55 (⬆️ 10.00%) – More buyers were able to close on homes.
🔹 Average Sale Price: $424,674 (⬇️ 2.23%) – A rare price decrease after years of growth.
🔹 Median Sale Price: $390,000 (⬇️ 4.88%) – The first dip in median price in recent years.
🔹 Average Price Per Sq. Ft.: $317 (⬆️ 7.46%) – Buyers are still paying more per square foot.
🔹 Average Days on Market: 29 days (⬇️ 12.12%) – Homes are selling faster than last year.

💡 What’s Happening in Warwick?
This is the first decline in home prices in Warwick in over a decade, which could signal buyer resistance to higher prices or changing demand. However, with homes selling faster, sellers who price correctly are still moving their properties quickly.

4. Rhode Island Multi-Family Market: Prices Are Soaring

Multi-family properties continue to be a hot investment, with prices seeing the biggest year-over-year jump of any segment.

🏢 Multi-Family Homes (MFM) – January 2025 vs. January 2024:
✔️ New Listings: 216 (⬆️ 46.94%) – A huge increase in seller activity.
✔️ Total Sales: 104 (⬇️ 0.95%) – Slightly fewer sales despite strong demand.
✔️ Average Sale Price: $585,884 (⬆️ 9.35%) – Investors are paying more than ever.
✔️ Median Sale Price: $550,000 (⬆️ 15.79%) – A massive jump in the middle of the market!
✔️ Average Price Per Sq. Ft.: $215 (⬆️ 7.50%) – Buyers are paying more per square foot.
✔️ Average Days on Market: 40 days (⬆️ 60.00%) – Properties are taking longer to sell.

💡 Investor Insight:
With interest rates still elevated, some investors are holding off on purchases, leading to longer days on market. However, prices are still climbing, and the long-term outlook remains strong.

5. Rhode Island Condo Market: Huge Price Surge

Condos saw a major price increase, making them an increasingly expensive option.

🏢 Rhode Island Condo Market – January 2025 vs. January 2024:
✔️ New Listings: 193 (⬆️ 22.93%) – More sellers are entering the market.
✔️ Total Sales: 120 (⬆️ 34.83%) – Strong buyer activity in this segment.
✔️ Average Sale Price: $503,071 (⬆️ 34.11%) – One of the biggest price jumps in recent years!
✔️ Median Sale Price: $403,000 (⬆️ 24.00%) – Buyers are paying a premium for condos.
✔️ Average Price Per Sq. Ft.: $361 (⬆️ 19.93%) – Per-square-foot prices continue to rise.
✔️ Average Days on Market: 47 days (⬆️ 46.88%) – Taking longer to sell than last year.

💡 What This Means for Buyers & Sellers:
🏡 Condos are appreciating fast, making them a strong investment, but higher prices could push some buyers toward single-family homes.

Final Takeaways: The Rhode Island Market Is Still Strong, But Changing

🔹 For Sellers: Prices are still rising overall, but buyers are getting pickier. Accurate pricing and great marketing are essential.
🔹 For Buyers: Inventory is improving slightly, but home prices aren’t coming down much. Waiting could mean paying more later.
🔹 For Investors: Multi-family properties remain a solid long-term investment, even as higher interest rates slow sales.

🏡 Thinking of buying or selling? Let’s talk!