In the next couple of years, consider investing in real estate in Providence, Rhode Island, as it’s expected to continue experiencing rapid growth. Although it’s still relatively affordable, the housing market in the area has been affected by Brown University.
Due to the lack of houses on the market, state leaders are considering various policies that could help increase the supply of homes. For instance, they could allow accessory dwelling units and tiny houses on single-family lots.
The median home price in Rhode Island has increased significantly over the past few years. According to the State-wide Multiple Listing Service, the median home price in the area has been rising steadily for 66 straight months. However, the increase rate has slowed down recently.
Despite the recent slowdown, home prices are still expected to continue rising. The rise in the median home price is attributed to the high demand for larger homes from out-of-state buyers.
Although home prices are expected to continue rising until the end of 2022, they may eventually fall due to the lack of supply. This year, the lack of inventory caused the housing market to slow down. However, rising mortgage rates and inventory are expected to drive home prices to moderate in the next couple of years.
Although experts predict that home prices will decline in 2023, they aren’t predicting a similar decline in Providence. The lack of supply is expected to continue affecting the market, but many believe that it will eventually be able to bounce back before the pandemic hits.
According to a new forecast released by Zillow, home prices are expected to grow by around 3.1% in 2023. The company also noted that price cuts are contributing to the projected increase. As a result, the Rhode Island real estate market is expected to perform better than it did a year ago.