2025 Rhode Island Real Estate Market Recap + 2026 Housing Forecast
If 2025 felt like the year the housing market slammed on the brakes — but home prices somehow forgot where the brake pedal was — you weren’t imagining it.
Across the country, home sales slowed to near-historic lows. But here in Rhode Island, prices kept moving upward.
So what actually happened in 2025? Why didn’t prices fall? And what does 2026 look like for buyers and sellers in Rhode Island?
Let’s break it down.
What Happened in the U.S. Housing Market in 2025?
Zooming out nationally, 2025 was undeniably slow.
Existing home sales nationwide totaled roughly 4.06 million, essentially flat compared to 2024 and sitting near the lowest levels seen in decades.
That sluggish pace made the market feel frozen — because in many ways, it was.
But here’s the key twist:
Even with fewer sales, home prices didn’t meaningfully decline.
Why Prices Stayed Firm Despite Slow Sales
The missing ingredient was inventory.
The market never saw the surge of available homes that typically brings prices down quickly. Instead, 2025 became the year of:
Fewer homeowners choosing to move
Buyers becoming far more selective
Sellers still anchored to 2021 expectations
Endless debates about mortgage rates
In short, affordability didn’t improve fast enough because supply never caught up to demand.
Rhode Island Real Estate Market Recap: 2025 by the Numbers
Rhode Island plays by its own rules.
We’re a small state, we underbuild housing, and demand stays consistent. That combination tends to put a floor under prices, even in slower markets.
Rhode Island Single-Family Homes (2025)
Total Sales: 7,809 (+1.8% year over year)
Median Sale Price: ~$499,900 (+5.2%)
Average Sale Price: ~$661,790 (+5.5%)
Days on Market: ~33 days (slightly higher than 2024)
Translation:
More homes sold than last year — and prices still rose. This was not a crash. It was normalization with upward pressure.
Rhode Island Condo Market (2025)
Condos were one of the most competitive segments of the year.
Sales: 1,908 (+5.7%)
Median Price: $390,000 (+9.9%)
Average Price: ~$482,564 (+7.4%)
Rising single-family prices pushed many buyers toward condos and “good enough” homes rather than stretching for a long-term dream home.
Rhode Island Multi-Family Market (2025)
Sales: 1,515 (essentially flat)
Median Price: $585,000 (+8.1%)
Multi-family properties remain highly competitive because they serve two purposes at once: housing and investment.
Warwick, RI Housing Market Snapshot (Full-Year 2025)
Zooming in locally, Warwick delivered a strong year.
Single-Family Homes in Warwick:
Sales: 959 (+14%)
Median Price: $430,000 (+4.9%)
Average Price: ~$477,665 (+5.3%)
Home values didn’t decline in Warwick in 2025 — the market simply cooled from its peak pace while prices continued to rise.
What Q4 2025 Told Us About Market Momentum
The final quarter of the year gave us a clean look at where the market is heading.
Rhode Island Single-Family Homes (Q4 2025)
Median Price: $500,000 (+5.3% year over year)
Sales: 1,896 (–3.9%)
Days on Market: ~37 days
Sale-to-List Ratio: ~100%
What this means:
Prices remained up, sales softened slightly, and homes took longer to sell. Negotiation returned — but modestly.
Warwick Q4 Snapshot
Median Price: $425,000 (+3.5%)
Sales: Slightly up
Days on Market: Higher than last year
Buyers had a little more breathing room, but well-priced, well-presented homes still won. In this market, sellers need to be either a “Diamond” or a “Deal.”
2026 National Housing Market Forecast
Forecasts aren’t gospel — but they’re useful for direction.
Consensus Outlook for 2026
Realtor.com projects:
Home prices up ~2.2%
Mortgage rates averaging ~6.3%
Existing home sales up ~1.7% (≈4.13M)
Inventory rising ~9% year over year
Zillow signals a similar modest increase, forecasting around 4.2 million existing home sales.
National Association of Realtors is more bullish, projecting a 14% increase in existing home sales.
Big Picture Takeaway for 2026
Most forecasts cluster around low single-digit price growth.
Inventory should improve, but in many regions — especially supply-constrained states like Rhode Island — it’s still unlikely to create widespread price declines.
What This Means for Buyers and Sellers in Rhode Island
For buyers:
You may see better selection and slightly improved negotiating power, but preparation and strategy still matter.
For sellers:
Pricing correctly is more important than it’s been in years. Buyers are no longer panic-buying everything with a roof. Presentation, condition, and realism now drive results.
For everyone:
National headlines don’t tell the full story. In Rhode Island, real estate trends can change block by block.
Want a Hyper-Local Market Breakdown?
If you want a custom snapshot for your town, neighborhood, or even your street, reach out or drop your city — and we’ll pull the numbers.
Local data beats national noise. Every time.
