Rhode Island Home Equity: Why You’re still way ahead

Why Your Home Equity Still Puts You Way Ahead

If you’ve seen headlines about home prices dipping, it’s easy to wonder what that means for your home’s value. The truth? Even with minor fluctuations, Rhode Island homeowners are still far ahead—thanks to the incredible equity growth of the past several years.

The Connection Between Home Prices and Equity

Home equity moves hand in hand with home prices. When prices rise, equity builds. When they cool slightly, equity growth slows—but rarely reverses.

Here’s what that looks like locally.

After the record-breaking surge in home prices during 2020 and 2021, a cooling period was inevitable. Back then, Rhode Island’s housing inventory reached historic lows, driving intense buyer competition across Barrington, Bristol, Providence, and beyond. Prices soared—and so did equity.

Now, as inventory inches upward and the market rebalances, prices have leveled—but homeowners remain in a very strong position. In my own experience closing 30 transactions so far this year throughout Rhode Island and Southeastern Massachusetts, I’ve seen firsthand how sustained equity gains are empowering homeowners—whether they’re upsizing, downsizing, or relocating.

Putting It into Perspective

According to Zillow, home prices have risen roughly 45% nationwide since March 2020. Here in Rhode Island, the median sale price has increased approximately 40% in that same period, depending on the community.

Even in areas where prices have softened slightly, those changes are minimal—typically in the 2–4% range—and they don’t come close to erasing the substantial equity homeowners have built over the past five years.

In other words, the sky isn’t falling. It’s stabilizing. And after several years of record-breaking appreciation, Rhode Islanders are still sitting on historic equity.

What That Means for You

If you’ve owned your home for even a few years, odds are you’ve built meaningful wealth—equity that can help you make your next move confidently. Whether you’re considering:

• Upsizing to meet growing family needs

• Downsizing to simplify and unlock cash flow

• Investing in another property or renovation project

…your equity gives you options.

And if you’re unsure what your current home is worth, you may be pleasantly surprised. Across my Rhode Island and Southeastern Massachusetts sales this year, homeowners who hadn’t tracked their property value closely were shocked—in a good way—by how much equity they’d gained.

The Market Is Balancing—Not Breaking

As Realtor.com’s Senior Economist Jake Krimmel notes:

“The slight recent declines in aggregate value and total home equity are not cause for concern… large price declines nationally are extremely unlikely in the near term.”

This moderation is a healthy sign—a recalibration after years of unsustainable growth. Homeowners remain in an enviable position, especially in Rhode Island, where limited inventory and steady demand continue to support strong home values.

Bottom Line

Even with some price adjustments, today’s Rhode Island homeowners are still well ahead.

If you’re curious about how much equity you’ve built—or how to leverage it for your next move—let’s connect. With over 30 transactions closed so far this year and an intimate pulse on the Rhode Island and Southeastern Massachusetts markets, I can help you determine your home’s true market position and plan your next steps strategically.

You might be surprised by how much your home is worth—and how far ahead you really are.