Rhode Island's housing market continued to see rising prices in August, while limited inventory and higher borrowing costs kept sales activity below last year's levels.

The median single-family home price reached $544,000, up 6.7% from August 2025, according to the Rhode Island Association of REALTORS®. At the same time, 741 homes sold, a 3.4% decline from a year earlier.

Inventory Is Improving, But Still Limited

Rhode Island had 2.8 months of single-family inventory in August, well below the 4.9 months of supply nationally. Although more homes are reaching the market, the increase has not been large enough to create a significant improvement in affordability.

Pending sales also declined. The state recorded 821 pending single-family transactions, down 7.2% year over year, suggesting that higher prices and mortgage costs are continuing to keep some buyers on the sidelines.

For buyers who are active in the market, the additional inventory provides more opportunities to compare properties and negotiate. But with fewer than three months of supply, competition remains relatively strong for desirable homes.

Prices Continue to Put Pressure on Buyers

The trend extends beyond single-family homes. The median condominium price reached $407,455, while multifamily properties had a median price of $607,500.

The combination of elevated home prices, mortgage rates and limited supply continues to create an affordability challenge across Rhode Island.

At the same time, the slower pace of sales suggests the market is becoming somewhat more balanced than during the strongest period of the housing boom. Sellers may have to be more realistic about pricing and negotiations, particularly as buyers gain additional choices.

The Bottom Line

Rhode Island's housing market remains firmly constrained by supply. The $544,000 median home price shows that values are continuing to rise, while declining sales indicate that affordability is becoming a bigger factor for buyers. Inventory is improving, but at 2.8 months, the state remains well below the national level and still needs more housing to meaningfully ease market pressure.