Narragansett, Rhode Island, celebrated for its beaches, iconic views, and laid-back coastal lifestyle, has emerged as a sought-after gem within southern New England’s real estate market. Over the past five years, this seaside town has witnessed remarkable changes in its housing landscape—shaped by shifting economic currents, buyer migration, and the lingering effects of the pandemic. This in-depth review explores Narragansett’s real estate market from 2020 to 2025, focusing on home price trends, transaction costs, days on market, and sales volume.
Overview of Narragansett’s Real Estate Market
Narragansett’s real estate market is defined by a mix of classic beach cottages, contemporary homes, and vacation retreats, many set against a backdrop of ocean views and a vibrant local community. The town draws second-home buyers, empty-nesters, young professionals, and investors, allured by its clean surf, thriving university presence, and proximity to Providence and Boston. Over the last five years, demand in Narragansett has surged, especially from out-of-state buyers—many seeking flexible lifestyles and coastal getaways within a reasonable distance of major metropolitan areas.
Home Price Trends: 2020–2025
Rising Values and Competitive Bidding
- From 2020 through 2025, Narragansett’s home prices have experienced strong appreciation, mirroring trends across premier coastal towns. Early uncertainty of 2020 quickly gave way to fierce competition, fueled by the rise of remote work and a growing appreciation for open space and ocean air.
- · In 2020, the median sale price for a single-family home in Narragansett was about $525,000.
- · By 2021, the median price climbed nearly 16% to $610,000, as buyers from the Northeast vied for limited inventory.
- · 2022 continued the upward momentum, with median prices reaching $670,000.
- · In 2023, the town’s allure and constrained listings pushed the median price to $710,000.
- · By summer 2025, Narragansett’s median sale price approached $750,000—a five-year increase of more than 40%.
Drivers of Price Growth
- · Remote work opportunities and a push for outdoor living
- · Limited new construction due to zoning, conservation efforts, and geographic constraints
- · High demand for beachfront and water-view properties
- · Persistent low inventory, especially in neighborhoods near the beach or the pier
Change in Costs: Mortgage Rates, Taxes, and Maintenance
Mortgage Rates
Borrowing costs, like elsewhere, fluctuated sharply. Record-low mortgage rates below 3% in 2020 and 2021 sparked a buying spree. By late 2022 and into 2023, rates moved above 6% as inflation crept in, slowing but not halting price growth. In 2024 and 2025, higher rates made some buyers more cautious, but Narragansett’s desirability kept values elevated.
Property Taxes and Insurance
Property taxes have risen moderately, in tandem with home values, but remain lower than neighboring resort areas like Newport or Cape Cod. Insurance premiums, especially for properties near the coastline or flood zones, rose sharply—some by as much as 25% over five years—reflecting heightened home costs and stricter underwriting by insurers.
Maintenance and Renovation
Maintaining ocean-facing homes came with increasing costs, as supply chain disruptions and inflation drove up the price of building materials and labor. Owners reported annual maintenance and renovation expenses rising by 10–15% since 2020, especially for older cottages and homes requiring storm hardening.
Days on Market: Homes Move Faster Than Ever
Declining Market Times
The average days on market (DOM) for homes in Narragansett dropped dramatically in the early 2020s, a testament to pent-up demand and competitive offers:
- · In 2020, homes typically spent about 50 days on the market.
- · By 2021, DOM fell to just 25–30 days, with bidding wars common for turnkey properties near the beach.
- · 2022 and 2023 saw homes selling in under 20 days on average, with some listings going under contract within a week.
- · As mortgage rates increased in 2024 and 2025, the pace moderated to 30–35 days—still far faster than in the pre-pandemic era.
Multiple Offers and Cash Buyers
Cash offers and rapid closings became common, especially on homes within walking distance of Narragansett Beach, Scarborough, or the Towers. Open houses frequently drew crowds, and many buyers waived contingencies to secure a deal.
Number of Homes Sold: Inventory Sets the Pace
Sales Volume Trends
The total number of homes sold each year in Narragansett reflected both surging demand and tight inventory:
- · In 2020, about 180 single-family homes changed hands.
- · 2021 saw a jump to roughly 230, as new buyers flocked to the market.
- · 2022 sales held strong at 220 homes sold.
- · 2023 experienced a slight decline to 205 sales, as available listings tightened further.
- · By mid-2025, annual sales stabilized near 210 homes, demonstrating continued demand despite higher prices and borrowing costs.
Inventory Constraints
Chronic low inventory capped sales. Narragansett’s strict zoning, environmental protections, and long-term ownership patterns restricted new listings. As a result, even as demand soared, the number of transactions never fully matched buyer demand—helping to sustain high prices and quick sales.
Market Drivers and Demographic Shifts
- · Out-of-State Buyers: Many buyers hailed from Connecticut, New York, and the Boston area, looking for second homes, work-from-home escapes, or long-term investments.
- · Retirees and Empty-Nesters: Narragansett’s relaxed lifestyle, healthcare access, and amenities continued to attract retirees.
- · Investors: The strong short-term rental market and year-round tourism drew investor attention.
- · Local Buyers: Competition for entry-level homes intensified, making affordability a growing challenge for local residents and first-time buyers.
Challenges Facing Narragansett’s Market
Affordability Pressures
Rapid home price growth placed ownership beyond the reach of many local families, spurring demand for rental units and accessory dwelling options.
Preservation vs. Growth
Efforts to preserve Narragansett’s natural beauty and historic character, while vital to the town’s identity, have restricted new construction, further tightening inventory and supporting high prices.
Climate and Insurance
As in other coastal communities, climate-related risks such as flooding, erosion, and severe storms have led to increased insurance costs and buyer scrutiny, especially in vulnerable shoreline neighborhoods.
Looking Forward: The Next Five Years
While rising mortgage rates and economic headwinds may temper future growth, Narragansett’s enduring appeal—its beaches, scenic landscapes, and vibrant community—suggests continued market strength. Striking a balance between preservation, development, and affordability will be key to supporting a sustainable and dynamic housing market.
Conclusion
Between 2020 and 2025, Narragansett, RI, has experienced rapid real estate appreciation, with median home prices rising by more than 40%, days on market falling dramatically, and sales volumes remaining robust despite persistent inventory constraints. The town’s coastal beauty, proximity to urban centers, and lively year-round culture continue to draw buyers from across the region and beyond, cementing Narragansett’s status as one of Rhode Island’s most desirable and competitive housing markets.
