June 20, 2019
A Providence Real Estate Pro’s Bold Predictions for Rhode Island and Beyond
Successful real estate investments come down to timing and strategy. But how do you know whether a real estate market is riding a peak or nearing the edge of a cliff? You need to be aware of employment, economic, and demographic data, among other contributing factors.
Here are some bold predictions for what lies ahead in the real estate market in Providence, Rhode Island.
Factors Supporting Real Estate Growth
The good news is that Rhode Island has been experiencing growth in all sectors of the real estate market — industrial, commercial, and residential. The question is: Is this growth sustainable?
Consistent growth requires that certain fundamentals be in place, such as good employment prospects, good infrastructure, and local economic growth prospects.
According to projections in the New England Real Estate Journal from Rhode Island’s own Tom Sweeney, Rhode Island is currently benefiting from a number of these influences, which positions the market well for future growth. The unemployment rate is dropping, and new jobs are being created on a consistent basis.
Sweeney, who is president of Sweeney Real Estate and Appraisal and an accredited member of the Society of Industrial and Office Realtors (SIOR), also noted that new industries are popping up in Rhode Island, which is good for the future of the commercial and residential real estate market. Companies need commercial space to manufacture, store and operate. Employees need housing.
Ortho Rhode Island just broke ground on a major medical and surgery center in Warwick — including a 60,000- and 40,000-square-foot facility — which bodes well for the growth and health of the local economy and sends a signal to other businesses that Rhode Island is a great place to call home.
In addition to strong commercial activities and low vacancies, the state’s housing market was also remarkably strong in 2018.
Location, Location, Location
Real estate located near amenities like shopping, restaurants, and outdoor space are most likely to grow in value. That includes residential and retail properties in communities near Rhode Island’s many beautiful beaches and in the bustling metro region surrounding Providence.
Some Potential Challenges
While Rhode Island is home to many fine educational institutions, graduates don’t tend to stay around. Although there is job growth, much talent leaves the state for other opportunities, negatively impacting population growth.
While it is prudent to acknowledge market challenges, Sweeney believes that the positive economic fundamentals outweigh the challenging population trend. The population decline may create a slight pullback in the market, but it won’t be severe. In the long term, as the population grows, so will the prosperity of the Rhode Island real estate market.
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