Providence, RI Historical (Un)Appreciation

[Fan Bi]

* Data from: http://www.riliving.com/PressReleases/SalesStatsArchive.asp

If you bought a multi-family in 1988, you were flat if you sold in 2013. You'd really hope you'd seen some good rental income in the meantime!

Would love to hear from folks as to why the next 25 years might be similar or different to the past 25.

[Jason Li]

I think 2013 was still a bad time for the RI real estate market. It was still in recovery mode. The median MF sales in providence in 2018 is now 225k. Are we at the peak? I dont know.  

I think as outside investors continue to chase higher yields, they will look at RI as a potential investment and continue to keep the prices up. But as housing becomes less affordable, rent increases will stabilize and therefore prices will too.  

I think investors will continue to see low returns with low cap rates and higher interest rates with little movement in market prices.