New State-Wide Short-Term Rental Registration Requirements Effective January 30, 2025

Published Sunday, October 20, 2024

Rental properties that are rented for 30 nights or fewer at a time on a hosting platform, which includes real estate brokerage sites, must be registered with the Rhode Island Department of Business Regulation (DBR). A new law S2410Aaa.pdf (rilegislature.gov) will require the following changes to the registration to take effect on January 30, 2025:

▪The property must be registered before it is listed on a hosting platform. The hosting platform remove the listing from its web site within 14 days after notification from DBR if the owner fails to renew the registration.

▪Listings of short-term rental properties on hosting platforms must include the registration number issued by the Department and the expiration date of the registration.

▪The registration must state whether the rental unit is in a single-family home, multi-unit, apartment, condominium, or timeshare.

▪The registration will expire after one year instead of two years.

▪The registration fee will change to $25 per year instead of $50 every two years.

DBR is revising its regulations to comply with the new law. Short-Term Rental Property Registration, 230-RICR-30-20-4.https://rules.sos.ri.gov/Promulgations/part/230-30-20-4.

R.I. Home Prices Still Climbing

Published Thursday, October 17, 2024 9:00 am

by RI REALTORS

Warwick, R.I. – October 17, 2024 – The median price of single-family homes sold in September climbed 6.6% year-over-year, continuing a trend in Rhode Island that began in February 2017. The Rhode Island Association of Realtors reported sales statistics today showing that last month’s median sale price of $485,000 was $30,000 higher than September 2023.

Sales activity has shown signs of slowing down and though that would typically put some downward pressure on prices, they are expected to remain elevated due to the pent-up demand caused by the housing shortage. Inventory continues to creep upward - now at a 2.4-month supply - an improvement from a year ago but still critically low. Closed sales fell by three percent and pending sales, the most common indicator of future sales, also dropped by 2.2%.

“Each month since January 2022, pending sales have fallen compared to the previous year, a sign that housing affordability is not improving in Rhode Island. The median sales price of single-family homes has risen year-over-year every month since January 2017. We desperately need to build more housing,” said Sally Hersey, President of the Rhode Island Association of Realtors.

The condominium market followed the same trends with September’s median sales price up 12.5%, reaching a record high at $427,450. The number of closed sales was down 5.3% from a year earlier.

The slowdown in sales is expected to continue in the months ahead as the number of sales put under contract but not closed by the end of September dropped by 8.4%. Falling sales have helped build inventory. The number of condominiums listed for sale increased 31% year-over-year.

The median sales price of multifamily homes skyrocketed to a record $595,000, 24.6% higher than that of September 2023. Closed sales fell by 12.6% from the previous year, though pending sales showed improvement in activity with an increase of four percent. The number of multifamily homes on the market rose 7.4% from September 2023.

“We haven’t yet seen much of an effect from the Federal Reserve’s September rate cut on Rhode Island’s housing market. Our main problem continues to be supply. The Realtor Association is committed to supporting all viable legislative initiatives that can help in that regard in the 2025 legislative session,” said Hersey.

Sales data is pulled from State-Wide Multiple Listing Service, a subsidiary of the Rhode Island Association of Realtors. The transaction system includes information about all Realtor-assisted sales.

RI BUSINESS

Rhode Islander housing prices continue to soar overall, though condo prices drop slightly

The median price for a single-family home shot up 11.5 percent in October, according to The Rhode Island Association of Realtors

By Omar Mohammed Globe Staff

The newly renovated three-family home at 294 Rhode Island Ave. in Woonsocket, R.I.Carlos Muñoz

PROVIDENCE – First-time homebuyers face many hurdles when it comes to purchasing a home in Rhode Island, including a lack of available, affordable properties and high mortgage rates and housing prices.

But while the the median price for a single-home property shot up 11.5 percent in October from a year ago to $485,000, according to The Rhode Island Association of Realtors, the number of sales and pending transactions in the Ocean State also rose during that time.

Overall, the number of closed deals rose more than 5 percent, and pending transactions increased 7 percent, the organization announced Thursday. But supply continues to be a problem: In October, homes available for sale rose nearly 5 percent — to about two months’ worth of supply, which is way below the five to six month cushion that real estate experts deem healthy for the market.

The multifamily segment of the market also saw prices soaring. The median price went up from $482,500 to $560,000 last month compared to October 2023, realtors said, driving the number of sales up more than 17 percent.

A weekday briefing from veteran Rhode Island reporters, focused on the things that matter most in the Ocean State.

An analysis from the National Association of Realtors suggests that interest in multigenerational homes has increased overall, as young buyers struggle to purchase homes by themselves. The average first-time buyer is 38-years old and earns about $97,000 per year, up from $71,000 two years ago.

“We’re seeing homeowners who are tapping into their equity and 401k and competing for properties with first-time home buyers without those luxuries. Many are cash buyers who are downsizing or buying a second home,” Chris Whitten, president of the Rhode Island Association, said in a statement. “It’s tough for younger buyers to compete with that.”

While programs that assist with down payments have been helpful, the lack of enough affordable homes in the Rhode Island market is proving prohibitive to all homebuyers.

Meanwhile, interest rates for mortgages are still elevated. The 30-year fixed mortgage rate edged closer to the 7 percent mark, according to lender Freddie Mac, the highest it has been since the summer.

“Higher prices and interest rates are still the biggest pain points preventing our younger generations from starting to build equity through home ownership,” added Whitten.

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One silver lining can be found in the condo market.

The median price for a condo in Rhode Island declined from $380,000 to $355,000, fueling a jump of more than 15 percent in sales. But even in that segment, supply remains a challenge.

“At the current rate of sales, all the condominiums available for sale in Rhode Island would be sold in just over two months if no new listings went on the market,” Whitten said.

Scaling construction in the condo market could help, he added, something that the Realtors Association is lobbying for with policymakers.

“More development is the key to help get younger generations into home ownership,” Whitten said.

Follow Omar Mohammed on Bluesky: @shurufu.bsky.social‬

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