Rhode Island's Housing Market Faces a Familiar Squeeze as Sellers Stay Put

Written by:

Steve Marcinuk

Date:

22 May 2026

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The spring market across New England is arriving with less momentum than many hoped. In Rhode Island, inventory remains thin, buyer confidence has softened, and sellers are holding on to assumptions that no longer match current conditions. For agents working the ground level, navigating these crosscurrents has become the job.

Jennifer Petreccia, Broker Associate and Team  Leader at RE/MAX Advantage Group, leads the Petreccia Group, a five-person team serving residential and commercial clients across Rhode Island, southeastern Massachusetts, and parts of Connecticut. With 16 years in the business and a role in agent development at her office, she has a clear view of how the market has cooled – and where the gaps between perception and reality are widest.

Stalled Inventory

Rhode Island’s spring housing market is arriving with far less supply than the season typically brings. The state currently has roughly 1,000 single-family homes on the market – only about 200 more than during the dead of winter. The state is on pace to record fewer total transactions than last year, a year that was already considered tight.

Early in 2026, there was some optimism. Rates had begun to ease, and activity was picking up. Then broader geopolitical uncertainty reversed the mood. “We were feeling really positive in January,” Petreccia says. “We had good momentum. Rates started to come down. And then the war in Iran really kind of halted the way people are moving.”

The underlying issue, though, runs deeper than any single news cycle. Life has simply become more expensive, and for homeowners who can comfortably stay put, doing so is the rational choice.

Rate Lock Effect

That reluctance to move is driven in large part by mortgage math. The so-called lock-in effect – where homeowners with low pandemic-era rates resist listing because trading up means taking on a much higher rate – continues to limit who comes to market. Petreccia sees it regularly among move-up buyers: people who purchased their first home during or before the pandemic, whose needs have since outgrown the property, but who are reluctant to give up a 2.5% or 3% rate.

Her approach with these clients focuses on reframing the conversation around monthly payments rather than rates alone. That often means walking through how existing equity can reduce the size of a new mortgage, or exploring whether consolidating high-interest consumer debt into a home loan actually improves the overall financial picture. As Petreccia puts it, “Although they have a two-and-a-half percent rate on their house, they may have super high credit card debt. So can we consolidate that?”

It is a more involved conversation than a simple rate comparison and requires working closely with lending partners who can model different scenarios. But for many move-up buyers, it is the conversation that finally makes a move feel possible.

Cautious Buyers, Renters

While sellers are staying put, buyers are growing more deliberate. Rising everyday costs are compounding the financial pressure of purchasing a home. “Their money is being spent faster,” Petreccia observes. “Between what it costs to live your everyday life and to get into a home, buyers are much more cautious.”

That said, one segment is finding the calculus relatively clear: renters. For those paying market-rate rent in Rhode Island, the monthly cost of ownership is often comparable – and comes with equity on the other side. Petreccia notes that for some of her renting clients, the move to ownership means paying the same or less each month while building long-term wealth. “They see the value in getting out of their rental situation and moving into something where they’re building their own equity,” she says.

First-time buyers, however, tend to underestimate the upfront costs of purchasing. Petreccia addresses this directly at the initial consultation, walking clients through every out-of-pocket expense before they are deep into the process. She also notes that first-timers often place significant trust in what sellers represent about a property, which makes thorough disclosure review a critical part of her team’s work.

Out-of-State Competition

Competition for Rhode Island homes is not coming only from within the state. Rhode Island’s relative affordability compared to Boston has been drawing Massachusetts buyers across the border for some time, particularly into urban and suburban markets. But the pressure is more pronounced along the coast, where buyers from New York and Connecticut are competing for beachfront and ocean-community properties. “That has really changed the narrative – it’s really changed the way our beachfront properties are selling,” Petreccia says.

The influx of out-of-state capital into coastal inventory adds another layer of competition for local buyers. It pushes pricing in those pockets further from what in-state incomes can support.

Out-of-State Competition

Perhaps the most consistent friction Petreccia encounters is sellers who are pricing and presenting their homes as though it is still 2023. The market has moved. Buyers are better informed, more selective, and less willing to overlook presentation issues or stretch beyond what comparable sales support.

Petreccia says many sellers believe their homes need little preparation, but that assumption is costing them time on the market. “Your house needs to be well presented and priced within the market range, or it is sitting on the market,” she says.

On the buyer side, the misconception runs in the opposite direction. Some buyers believe the current environment gives them significant negotiating leverage. In a market with only 1,000 single-family homes available statewide, that leverage is more limited than many expect.

What’s Next

Beyond her client work, Petreccia is training to become the broker at RE/MAX Advantage Group, working alongside her mother and broker-owner, Carolyn Petreccia, on agent development. It is a role that keeps her close to how the broader agent community is adapting to a market that looks very different from the one in which most agents built their businesses.

For buyers and sellers in Rhode Island right now, the market rewards preparation, realistic pricing, and agents who are willing to have direct conversations. The fundamentals of supply and demand have not changed. There simply is not much supply, and the demand that exists is navigating a more complicated financial environment than it was a few years ago. Until more homeowners feel comfortable listing, that tension is unlikely to ease.

About the Expert: Jennifer Petreccia is a Broker Associate and Team Leader at RE/MAX Advantage Group, leading the Petreccia Group, a five-person team serving Rhode Island, southeastern Massachusetts, and parts of Connecticut. She has 16 years of experience in the business and is training to become the broker of RE/MAX Advantage Group.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.