Inventory crisis in RI Real Estate: Understanding Causes, Exploring Solutions – Emilio DiSpirito

By Emilio DiSpirito, Realtor and co-owner of Engel & Völkers East Greenwich and Engel & Völkers Barrington East Bay 

Let’s delve into the current housing inventory crisis in the vibrant Rhode Island market. In recent times, the state has been experiencing historically low levels of available housing stock, posing challenges for prospective buyers and real estate professionals alike. In this article, we will discuss three key reasons behind this phenomenon and offer a range of solutions to address the inventory crisis.

Reason 1: Population Growth Outpaces Construction:

Rhode Island has witnessed a steady increase in population, driven by factors such as a strong economy, educational opportunities, affordable housing for a Boston workforce and a desirable quality of life. However, the pace of new construction has not kept up with this rapid growth. As a result, the demand for housing exceeds the supply, leading to a significant decrease in available inventory.

Solution 1: Encouraging New Construction:

To alleviate the inventory crisis, it is crucial to stimulate new construction in Rhode Island. This can be achieved through incentives such as tax breaks, streamlined permit processes, and partnerships between developers and local governments. Additionally, working closely with builders and contractors to identify potential areas for development and promoting mixed-use projects can help increase the housing stock.

Reason 2: Limited Land Availability and Zoning Restrictions:

Rhode Island is a small state with limited available land for new construction. Zoning restrictions, aimed at preserving the state’s unique character and natural resources, can also impede the development of new housing. These factors contribute to the scarcity of available properties.

Solution 2: Redevelopment and Adaptive Reuse:

Given the constraints on available land, focusing on redevelopment and adaptive reuse of existing properties can be an effective solution. Encouraging the conversion of underutilized commercial spaces, vacant buildings, and brownfield sites into residential units can help expand the housing inventory. Furthermore, municipalities can consider revisiting zoning regulations to allow for more flexible land use, without compromising the state’s cultural and environmental heritage.

Reason 3: Aging Population and Lack of Downsizing Options:

Rhode Island, like many other regions, faces the challenge of an aging population. Many older homeowners prefer to age in place, leading to a limited number of larger homes becoming available for younger buyers. This lack of downsizing options further exacerbates the inventory crisis.

Solution 3: Encouraging Multigenerational Housing and Downsizing Incentives:

Promoting multigenerational housing options, such as accessory dwelling units (ADUs) or shared living arrangements, can help address the housing needs of both older and younger residents. Additionally, offering downsizing incentives, such as property tax breaks or financial assistance programs, can encourage older homeowners to move to more suitable housing options and free up larger homes for younger families.

In conclusion, the inventory crisis in Rhode Island’s real estate market demands proactive measures and collaborative efforts from various stakeholders. By encouraging new construction, exploring redevelopment opportunities, and promoting multigenerational housing and downsizing incentives, we can gradually alleviate the shortage of housing inventory. Together, we can foster a balanced and thriving real estate market that meets the needs of Rhode Island’s diverse population.

Editor’s Note: Of all the housing bills that passed this year, the “ADU” legislation did not. Speaker of the House Shekarchi has said he hopes to make that a priority “in January”.

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To read more articles in RINewsToday by Emilio, go to: https://rinewstoday.com/emilio-dispirito/

Phone: 401-359-2338 – Email: [email protected]

Instagram: @EVRhodeIsland – Website: EastGreenwich.EVRealEstate.com

Emilio DiSpirito

If you would have asked me what I wanted to be growing up, little Emilio would have told you “an archeologist” or “an architect” despite the fact that at age 8 I had my first lemonade stand, landscaping business and was recording my first “news show” on my boombox!  Well, I never was much good at trigonometry and did could not see myself traveling for months and possibly years at a time, so becoming an architect or archaeologist clearly did not happen!

Fast forward 26 years later and I’m running a team of the finest residential real estate professionals, own a media company and host my very own radio news show about real estate!

For 7 years straight it seemed that I had put in more hours than the day had to give on my real estate business. 7 days a week, 14 to 16 hour days, without a break! Why? My friends and family did not understand the sheer magnitude of moving parts and services we offer to our clients during a transaction! One slip up or one missed call could mean make or break for someone’s dream home or even a lost deposit!

Running a team of like-minded, highly qualified and capable professionals has allowed me to offer a very streamlined, simplified and efficient approach to the sales process for our clients and allowed me to earn personal time again with my family while not missing a beat for my clients!

When I’m not working, I’m with family and friends, riding my mountain bike, eating at local restaurants, enjoying live entertainment, hiking, skiing or reading!