2026 RHODE ISLAND REAL ESTATE MARKET PREDICTIONS

As we move into 2026, the Rhode Island housing market is expected to remain competitive, resilient, and locally driven - even as the national market settles into a more balanced phase. Here’s what buyers, sellers, and homeowners should know about what’s ahead.

Rhode Island Home Prices Are Expected to Hold Strong

Rhode Island continues to experience steady home value growth due to limited inventory and consistent demand. According to Zillow, the average home value in Rhode Island is approximately $480,000, with prices showing modest year-over-year increases heading into 2026. Zillow forecasts suggest appreciation will continue at a more sustainable pace rather than the dramatic spikes seen earlier in the decade.

Inventory Remains Tight Across the State

Housing supply remains one of the biggest challenges in Rhode Island. Data from the Rhode Island Association of Realtors shows the state is operating with roughly two months of housing inventory, well below the five to six months typically considered a balanced market.This ongoing shortage continues to support home values and fuels competition, particularly in well-located and move-in-ready homes.

Providence and Coastal Markets Continue to Lead Demand

Providence has gained national attention for its housing demand and affordability relative to other Northeast metro areas. Several regional housing reports have identified Providence as one of the more competitive mid-size markets heading into 2026 due to strong buyer interest, employment stability, and limited supply.At the same time, coastal Rhode Island markets, including Newport County and South County, continue to attract lifestyle-driven buyers, second-home purchasers, and long-term residents.

Mortgage Rates Are Expected to Stabilize

According to the National Association of Realtors, mortgage rates are expected to remain relatively stable in 2026, hovering in the low-to-mid 6% range. While higher than historic lows, this level of predictability helps buyers plan and encourages more sellers to list as rate volatility eases.

The Bottom Line

The Rhode Island real estate market in 2026 is not expected to experience dramatic swings, but rather continued strength driven by low inventory, steady demand, and localized market dynamics. Buyers and sellers who understand their specific town, pricing trends, and timing strategies will be best positioned to succeed.