One Type of New Housing in RI Continues to Flounder

One Type of New Housing in RI Continues to Flounder

The median price of a single-family home continues to average about $500,000, pricing most Rhode Islanders out of the market.

There have been an endless number of legislative initiatives proposed and passed by the Rhode Island General Assembly, with mixed results.

Despite the expenditure of hundreds of millions in taxpayer dollars — federal COVID money and state bond issues, Rhode Island’s effort to develop more housing has been inadequate at best, and the state still sits as building the fewest new units per capita.

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One of the initiatives intended to spur more housing was a streamlined process for approving accessory dwelling units (ADUs).

A State of Rhode Island report released last week shows that the number of ADUs actually built and issued certificates of occupancy (COs) remains nearly dormant—less than 90 in 2025.

 

Little Progress, Providence Going in the Wrong Direction

Just 82 COs were issued statewide in all of 2025.

The report revealed that the number of COs for ADUs decreased in Providence in 2025 compared to 2024.

In 2024, Providence issued 10 COs for ADUs, but that number fell to just 5 in 2025.

Across the state, the total number of COs increased only marginally— from 73 in 2024 to 82 in 2025.

The only significant good news was that the number of ADUs seeking approval increased from 149 in 2024 to 262 in 2025, but few were converted to completion.

 

Too Costly

Stephen Antoni, a broker for Mott & Chace Sotheby’s International, cites the high cost of soft costs. Referencing the National Association of Realtors’ data, the cost of building a property can be as high as $90,000 for regulatory fees for zoning, engineering, and permits — all of this before a single nail is pounded into a piece of lumber.



 

One Rhode Island company has tried to create a streamlined process - READ HERE.

 

Massachusetts Continues to Push

Massachusetts Governor Maura Healey announced last month that cities and towns have permitted or approved 1,224 ADUs to date in 217 communities — “an early snapshot of progress as communities implement the new statewide standard and homeowners begin moving projects forward.”

Healey recently announced several new initiatives to build on this progress and accelerate the production of ADUs to help lower costs statewide. 

“ADUs are one of the most practical ways to add homes and lower costs. They allow older adults to age near their loved ones and young adults to live independently while starting their careers,” said Healey. “This first-year data shows homeowners are already starting to take advantage of our new law, and we’re going to keep making it easier and cheaper to build ADUs so we can bring down housing costs for everyone.” 

“It's great to see so many people across Massachusetts signing up to build ADUs,” said Lieutenant Governor Kim Driscoll. “By setting clear rules statewide and backing them up with real support, we’re giving families more options while helping cities and towns grow housing.”  

“The first-year data shows the Affordable Homes Act is working as intended by making ADUs simpler to permit across Massachusetts,” said Housing and Livable Communities Secretary Ed Augustus. “Now we’re capitalizing on that momentum with designs, technical assistance and affordable financing to accelerate ADU production and help relieve our housing shortage.”