Washington-Driven Uncertainty Hits RI Real Estate Market
Washington-Driven Uncertainty Hits RI Real Estate Market
While prices remain steady — the median price of a single-family home was $480,000 according to the Rhode Island Association of Realtors in March — other numbers are showing that the market may see some significant changes, and you only have to look to Washington, D.C. to see the influencing factor.
Rhode Island’s market is being impacted by decisions being made by the Trump administration — ranging from the global tariff fight to cuts to research grants and federal funding for universities.
“There is a lot of uncertainty. It's cooled off a bit of the demand. Not so much where it's crickets and flatlined, but you know, with the interest rates the way they are and the uncertainty in the global economics on a macro level. We're finding you buyers are being more selective,” said Josh Cullion with Mott & Chace Sotheby's International Realty on Wednesday, in an interview on GoLocal LIVE.
Although the number of homes on the market rose 29.2% year over year, the supply of homes remains low, which keeps prices elevated. The median price of homes sold last month rose 9.1% to $480,000 from 12 months earlier.
“Thankfully, we’re seeing more homes hitting the market here in 2025 compared to this time last year. At the same time, pending sales have slowed over the last four months which has led to fewer closings. With our economy shifting and consumer confidence waning, we’re seeing more buyers sitting on the sidelines. This should help us head towards a more balanced housing supply, which currently remains critically low,” said Chris Whitten, President of the Rhode Island Association of Realtors.
X-Factor Driving Price Stability
Cullion said one of the key factors driving price stability is the continuous flow of out-of-state buyers who see Rhode Island as a bargain.
“Rhode Island is still a deal for most buyers coming in from out of state. Relative to where they're from Boston, Tri-state area, or California...you know, the Bostonians look at the price and they're saying, ‘This is all this is. Do you know how much this would be 45 minutes north?’” added Cullion.
About one-quarter of all homes sold in Rhode Island are now sold to out-of-state buyers.
Trump’s Cuts
Cullion said the cuts to higher education, healthcare and research are beginning to be felt here in Rhode Island.
“Two clients, just as immediate examples for the sake of the conversation, who are relocating and changing plans [due to Washington cut]. You know we're going to be listing and selling their home because they're relocating to a different location because of the impact that it's had. I don't want that to be nightmare fuel. That's, you know, those are two lone examples,” said Cullion. “I don't believe myself, call me naive, that it's a title wave happening, but of course it's being impactful.”
“We’ll be watching closely to see how both tariffs and increasing demand for supplies affect development. We need to continue to promote sensible new construction and rehab projects here in Rhode Island amidst our housing crisis. We’ll continue to work together with our city and town officials, our state legislators, and beloved communities to provide the housing our state is in dire need of,” added Whitten.