With 2023 winding down, I’ve been getting a lot of questions from our clients about what to expect in the Rhode Island rental market for 2024. It’s a topic that’s got everyone talking, especially given the recent twists and turns in rental prices. So, before we dive headfirst into what the 2024 Rhode Island rental market predictions and see what the future holds, let’s first take a stroll down memory lane and see how this year has been for the rental game.
2023 Rhode Island Rental Market Recap
According to apartmentlist.com, Providence has been nothing short of a rocket ship in the rental world, boasting the fastest year-over-year rental growth in the country at a jaw-dropping 5.8%. Now, that’s no fluke. I did my homework, and both realtor.com and Zillow confirm this trend. It’s all part of a pattern I’ve been witnessing for the past few years – Rhode Island is where it’s at.
What’s drawing folks in, you might ask? Well, it’s simple: affordability and proximity. Rhode Island offers the best of both worlds. You can enjoy the Rhode Island lifestyle without the hefty Boston-sized rent rates. And with more out-of-staters making the move, it’s adding fuel to Rhode Island’s already skyrocketing population. When demand soars, and the supply remains static, landlords find themselves in a favorable position, giving them the upper hand in setting rental prices. This trend has been evident since the onset of the COVID-19 pandemic in mid-2020, and it has persisted throughout this year, driving rental prices upwards.
Eleven months into the year, we’ve witnessed an impressive surge in rents in Providence, clocking in at a remarkable 7.4% growth rate. To put this into perspective, it’s a faster rate of growth compared to what the city was experiencing at this point last year. From January to November 2022, rents had increased by a respectable 3.9%. This significant acceleration in rental price growth reflects the sustained demand and attractiveness of the Rhode Island rental market.
According to the data, it’s clear that Providence has been on an upward trajectory in terms of rental prices, and the momentum doesn’t seem to be slowing down. This robust performance is a testament to the city’s allure, driven by its affordability, accessibility to neighboring urban hubs, and the influx of newcomers. It’s this kind of data that underscores the optimism and anticipation for what the rental market in Rhode Island holds in the upcoming year.
As we continue our journey into 2024, let’s explore what this thriving market might have in store for both renters and landlords.
Rhode Island Rental Market Prediction: Looking Ahead to 2024
Now, let’s fast forward to 2024, the year of a national election. You might be wondering what politics has to do with rental prices. As a matter of fact, elections tend to bring some perks. We usually see lower gas prices and reduced costs for goods and construction materials. That could mean one thing – more construction projects developing all over Rhode Island.
Take a drive around Providence and nearby areas, and you’ll see multi-families and apartment complexes sprouting up like mushrooms. With many of these set to finish in 2024, we’re looking at a supply surge. Whether demand will follow suit is anyone’s guess, but one thing’s certain – renters will have more choices. For those coming from out of state options will be avaialble. The same scenario applies for locals eyeing a move to a new 2-bedroom unit. They will have more choices.
Market Softening and Pricing Adjustments
However, it’s important to note that we have observed some softening in the market in recent months. Does this signify a crisis with declining prices? It’s more about keeping our finger on the market’s pulse and adjusting accordingly.
At Stonelink, we have always emphasized the importance of securing long-term, stable tenants who pay market-appropriate rents. When supply increases, those who initially signed leases at the peak of the market may find more affordable options. This can happen when it’s time to renew or move. Adapting your pricing strategy in a timely manner is key to success in the ever-changing Rhode Island rental market.
Stonelink’s Commitment to Clients
Remember, we’re here for you, our clients, every step of the way. We provide our clients with the best possible guidance, whether it’s about rental increases or listing vacancies. Regardless of how 2024 unfolds, one thing is clear: our commitment to our client’s success remains unwavering. In 2022, we listed and rented 332 rentals. In 2023, we’ve already rented 340 units through November. As we look ahead to 2024, we have no intention of slowing down. Let’s work together to make 2024 a resounding success in the world of real estate investment and property management.
Let’s work together to make this new year a resounding success in the world of real estate investment and property management. Wishing you all a prosperous 2024!
Frank is a licensed leasing manager at Stonelink with over a decade of experience in the real estate and property management industry. His in-depth knowledge of the Rhode Island rental market and commitment to client success make him a valuable resource for investors and landlords to navigate the ever-evolving landscape of the Rhode Island rental market for success.