Rhode Island Housing Inventory Falls To Record Lows

PROVIDENCE, RI — Rhode Island's real estate market remains extremely tight for buyers, with not enough houses on the market to meet demand. In February, overall sales fell, while inventory plunged to historic lows.

Low inventory has been a problem in Rhode Island since the start of the coronavirus pandemic, with available homes well below the levels of a healthy market. Last month, there were just 789 homes for sale in the state, the least available since record keeping begin in 1998, according to the Rhode Island Association of Realtors. That's 30 percent fewer available homes than February 2021, and nearly 68 percent less than in 2020.

February also saw another month of sliding sales, the 34th consecutive month of decline. With fewer homes placed under contract over the course of the month, as well, the association expected the trend to continue into the coming months.

With the supply of available homes so tight, the average price continued to climb over the past month, as well, rising by 15 percent to $368,000 for a single-family home.

Agueda Del Borgo, the association's president, said that more housing is badly needed in the Ocean State.

"More people will face housing affordability issues as inventory continues to deplete and interest rates rise," Del Borgo said. "We desperately need more housing in Rhode Island, particularly for low- and middle-income earners, so that our businesses can attract and retain workers."

Under the current conditions, the supply of single-family homes for sale in Rhode Island would be depleted in less than a month, far less than the ideal timeline of six months.