Latest news with #RhodeIslandAssociationofRealtors
Yahoo
2 days ago
- Business
- Yahoo
Real estate pushback to the 'Taylor Swift tax' begins. Will the charge hit everyday cottages?
Star entertainer Taylor Swift would owe Rhode Island around $136,000 in new taxes on her Watch Hill mansion if a new charge to high-end vacation homes proposed in the House version of the state budget passes. And Rhode Island real estate professionals, who successfully defeated a similar tax plan a decade ago, are mobilizing to kill the tax hike again and argue that even if Swift can afford it, she and others in her position shouldn't have to pay. "We're screaming from the top of Jerimoth Hill. ... Do not hurt our housing market right here more than you are," Chris Whitten, president of the Rhode Island Association of Realtors, told The Providence Journal in a June 12 phone interview. "Because who knows what the slippery slope leads to? Let's heal. How about we heal our housing crisis we have here in Rhode Island, which is the worst in the nation by many of the stats that we see." The "Taylor Swift tax," if it passes, would apply to second (or third or fourth) homes with assessed values of more than $1 million, and its proceeds would fund the state's low-income tax credits that help finance affordable housing developments. How much it will raise is murky. Because the tax wouldn't go into effect until July 2026, House budget writers did not have to estimate its financial impact on the 12 months starting this July 1. But real estate brokers and agents, who are even more ticked off about a proposed 61% increase in the conveyance tax on home sales, say soaring property values means the tax on expensive properties will hit more than just pop stars. "Think about that family that has had this Narragansett Beach house in their family for four generations, and the family collectively uses it various weeks throughout the summer, and in the winter it just stays vacant," Whitten said. "They're going to be whacked with this." The Taylor Swift tax, officially called the "non-owner-occupied tax," applies to all residential properties assessed at more than $1 million that do not serve as a primary dwelling. To qualify as a primary residence, an owner has to live there more than half the year, or 183 days. The non-owner-occupied tax rate of $2.50 cents per $500 of value only applies to assessed value above $1 million, so even homes worth exactly $1 million would pay nothing. Properties that are rented − either in traditional long-term leases or short-term through online platforms − would be exempt from the tax as long as, again, they are occupied at least 183 days a year. Beyond the revenue benefit of the tax, House supporters of it point out the potential added benefit of creating an incentive for property owners to make more productive use of their luxury pads. Swift could avoid the tax if, instead of spending a few summer weekends here, she becomes a bona fide 183-day-per-year Rhode Islander. Alternatively, she could rent out the 1904-built, seven-bed, nine-bath estate during the cold winter months. Either option would likely pump some welcome economic activity into Watch Hill during the offseason when the enclave can resemble a ghost town. "You'll have to ask her," House Speaker K. Joseph Shekarchi said June 12 when asked if he hoped the tax would encourage Swift to move here full time. "I welcome any and all people who spend more time around Rhode Island. It's a beautiful state, and I love it dearly." Since then-Gov. Gina Raimondo first proposed a tax on luxury vacation "cottages" shortly after her inauguration in 2015, the politics around investment properties, out-of-state buyers and waterfront homes that sit vacant most of the year had not reached the boiling point where it is now. In the last decade, local governments have passed all kinds of ordinances restricting short-term rentals and lawmakers have considered numerous measures to encourage full-time owner-occupants but have largely maintained the status quo. A preamble to the new tax in the budget rails against absentee property owners, calls owning a property you don't live in a "privilege" and suggests that more moves to push homes into year-round occupancy could be ahead. "Non-owner occupied properties sometimes place a greater demand on essential state, city or town services such as police and fire protection than do occupied properties comparably assessed," the budget article says. "The residents of non-owner occupied properties are not vested with a motive to maintain such properties." And, it goes on, "some properties are deliberately left vacant by their owners in the hope that real estate values will increase, thereby enabling the owners to sell these properties at a substantial profit without making any of the necessary repairs or improvements to the property." Is some of that criticism of the high-end market fair? Whitten: "It's tough when people try to paint a broad picture, and it's a much more intricate situation. Just like landlord tenants, everybody's fighting at the State House, but we as Realtors are in the middle on that. We see both sides." The tax rate in Raimondo's 2015 Taylor Swift tax proposal was half that of the current plan, at $2.50 per every $1,000 of value instead of $2.50 per $500 of value. It was estimated to generate $11.8 million in new revenue, but was not included in the House budget that year. This article originally appeared on The Providence Journal: Real estate pushback to RI's proposed 'Taylor Swift tax' begins
Yahoo
23-04-2025
- Business
- Yahoo
McKee to announce plan to add more housing in Rhode Island
PROVIDENCE, R.I. (WPRI) — Gov. Dan McKee is set to unveil his long-term plan to add more housing in Rhode Island on Wednesday. The state has dealt with a housing crisis for years, and 'Housing 2030' will be the first statewide housing plan since 2006. According to McKee's office, the draft plan lays out actionable strategies to increase production of affordable, accessible, and diverse housing options in the state. The plan puts out a long-term vision to address the state's housing challenges and meet the needs of communities. Earlier this year, the Rhode Island Department of Housing announced its goal to create 15,000 new housing units by 2030. Could RI create 15,000 new housing units by 2030? Data from the Rhode Island Association of Realtors showed a drop in home sales of 4% from March 2024 to 2025. The number of homes on the market rose 29.2% over the year, but the supply of homes remains low, therefore keeping prices high. The draft plan will be announced at 1:30 p.m. at the State House. Input from the community is encouraged and will play a role in shaping the final plan and the state's housing strategy moving forward. Download the and apps to get breaking news and weather alerts. Watch or with the new . Follow us on social media: Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
11-03-2025
- Business
- Yahoo
Providence once again is ranked among the hottest housing markets in the country. What to know.
PROVIDENCE – No matter who does the study, Rhode Island is considered one of the hottest housing markets in the country. According to February hottest housing markets report, the Providence metro area was the 11th hottest market in the country, down two slots from where it was in January, and a lot cooler than it was in 2024, topping the charts. What the market looks like: The conditions that people are buying houses under are a lot closer to what they were when their parents, or their parents' parents, might have bought. Interest rates, between 6% and 7%, are the highest they've been in 20 years but low compared with historic highs of the 1980s, when they were topping out at nearly 17% for the highest average. What the report found: The median listing price for homes in the Providence metro area (covering all of Rhode Island and into some of Massachusetts, including the South Coast) is at $535,000, up slightly from its January report at $521,000. For reports, a hot market means "high buyer demand and quick home sales." Time on the market: One of the main metrics for both is days on the market. Per the report, homes in the Providence metro area are staying on the market a median of 39 days. In the hottest market – Hartford, Connecticut – the median price was $434,000 and the median days on the market was 38. "The West and the South have seen the biggest annual increase in inventory compared with the other regions, with for-sale home options increasing 37.4% and 29.9% year over year, respectively," Hannah Jones wrote. "More homes on the market means a slower market pace and less buyer attention per property, cooling the two metrics that measure hotness." While puts out its hotness report for the Providence metro area, the Rhode Island Association of Realtors puts out its own monthly reports on house sales, using its data from the Multiple Listing Service, or MLS, system. Here's what single-family home sales looked like in January: Median price: $465,000 ($470,000 in December 2024) Days on market: 39 (34 in December 2024) Listings: 929 (979 in December 2024) Properties sold: 429 (693 in December 2024) Supply and demand: The shortage of home listings continues to drive up the median price of homes as buyers compete for limited inventory. That pool of buyers is smaller than it has been in years because of interest rates between 6% and 7% and the skyrocketing price of houses. The number of listings in Rhode Island remains woefully slim, with the R.I. Realtor Association reporting that those 929 listings represented 1.5 months worth of inventory. That means if no new homes came on the market, the rate of sales stayed the same and no new houses were listed, the whole state would be out of houses to sell in 1.5 months. What's that cost? The monthly mortgage payment, excluding everything but the mortgage itself, for a $400,000 mortgage at 6.75% is $2,594. For a $450,000 mortgage, it is $2,919. In much of the country, the main markets are the condo and single family, but in Rhode Island, especially in the state's urban centers, multifamily housing is a big component of the housing being sold. More time on the market: Multifamily homes in January spent 40 days on the market, compared with 27 in December and 26 in October and November. Staying pricey: The median price was $550,000, up $5,000 from December but right in line with past months. While that is expensive, assuming two units per multifamily building, that's $275,000 a unit, compared with the single-family home price of $465,000. Assuming a triple decker (which comes with its own set of lead-paint liabilities), that price drops to $183,333 per unit. What's that cost? The monthly mortgage payment, excluding everything but the mortgage itself, for a $400,000 mortgage at 6.75% is $2,594. For a $450,000 mortgage, it is $2,919. Supply and demand: The number of listings was lower than last summer, at 210, but around the average for the post-pandemic market. Pre-pandemic, the number of listings hovered between 386 and 486. Condos are up in price but below the highest median price they've hit, and they are spending longer on the market, slightly increasing the number of listings in January: Median price: $403,000 Days on the market: 47 Listings: 301 Sold: 120 Thanks to our subscribers, who help make this coverage possible. If you are not a subscriber, please consider supporting quality local journalism with a Providence Journal subscription. . Follow Wheeler Cowperthwaite on X, @WheelerReporter, or reach him by email at wcowperthwaite@ This article originally appeared on The Providence Journal: says Providence has one of the hottest real estate markets
