It’s no secret that home prices have been rising ever higher across housing-starved Rhode Island.
But a PBN analysis of median single-family home sales shows that the gains over the past five years vary widely.
In some communities, such as Exeter, 29%, and Scituate, 30%, the multiyear gains have been solid but well below the state’s median sale price jump of 49%, to $425,000.
And as this week’s cover story reports, numerous communities – including the capital city – have seen gains of more than 70%.
This is great for sellers and those who bought at much lower levels, but there’s a dark side: Homeownership has become increasingly unattainable in many communities for residents unable to compete with more wealthy, out-of-state buyers.
Further squeezing supply – and driving up prices – is a growing percentage of corporate homeownership turning single-family housing into profitable rentals.
Rhode Island’s rate of single-family sales to corporate buyers doubled over five years in 2022, according to the Washington, D.C.-based Private Equity Stakeholder Project.
Central Falls, which has a small amount of single family housing, is buying property to renovate or to build new homes on to make available to first-time homebuyers through a lottery system. It’s a laudable program but too small to move the needle without more funding.
A $120 million housing bond on the November ballot could, however, make a big difference. Boosting affordable housing helps ensure a stable, local workforce, something even the wealthiest communities in the state depend on.