T
he Rhode Island housing market is expected to see a significant shift in 2025, with Emilio DiSpirito, License Partner of Engel & Völkers, predicting an uptick in inventory. Currently, there are around 1,100 housing units on the market, up from last year's low of about 750 units. DiSpirito believes this trend will continue, potentially reaching a total of 1,500 units by the end of the year, which would be the highest level in four or five years.

    While higher inventory is typically beneficial for buyers, DiSpirito warns that home prices may still rise due to the market's current shortage. Rhode Island is approximately 1,000 housing units short of what's considered "normal." For prospective buyers, DiSpirito suggests taking advantage of the current situation by purchasing a home between now and February before warmer weather brings more competition.

    Additionally, new developments like the proposed Center of New England project in Coventry, which aims to build over 700 units with at least 15% designated as low or moderate income housing, will eventually provide more options for buyers. However, DiSpirito cautions that if interest rates drop into the low 6s or high 5s, prices may accelerate rapidly, potentially leading to waived inspections and appraisal gaps in order to secure offers.