Buying a Home on Block Island (New Shoreham), Rhode Island

Block Island — officially the Town of New Shoreham — is Rhode Island's smallest municipality and its most unusual real estate market. Twelve miles offshore, about 1,000 year-round residents, roughly 40% of the island permanently conserved, and a summer population that multiplies it many times over. Everything about buying here is different from the mainland: the ferry schedule, the construction costs, the insurance, the rental economics and the pace of transactions.

Block Island market snapshot: August 2026

In August 2026, the median single-family home in Block Island sold for $2,300,000, with no single-family closings a year earlier to compare against. That is above the statewide median of $544,000. 1 single-family home closed, averaging 39 days on market against 33 days statewide.

Median sale price	$2,300,000	no August 2025 sales to compare
Homes sold	1	0 in August 2025
Average days on market	39	not reported in August 2025

Block Island recorded only 1 single-family closing in August 2026, so one unusual sale moves the median sharply. Treat this as direction, not a precise value for any specific home.

Source: Rhode Island Association of Realtors / State-Wide MLS, single-family home sales, August 2026 compared with August 2025.

Medians describe the middle of the market, not your house. If you want a number you can actually price against, I am a broker and a Certified Rhode Island Real Estate Appraiser — call 401-288-3600 or start with the home value request form.

What Block Island prices look like right now

In June 2026 Block Island recorded 3 single-family sales at a median of $2,225,000, up 1.7% from $2,188,750 a year earlier, with an average of 392 days on market, per Rhode Island Association of Realtors / State-Wide MLS data. Washington County posted a $702,000 median on 133 sales, up 0.7%; the statewide median reached a record $550,000.

Two figures here deserve emphasis. First, the median is the highest in Rhode Island by a wide margin and has been for years — Block Island is a seven-figure market almost across the board. Second, 392 average days on market is not a typo and not a distress signal; it is how this island trades. Buyers are a small, national, discretionary pool, and properties routinely sit for a year or more before the right person appears. As a broker and certified appraiser, I underwrite island value off land, view, water access, rental history and replacement cost, using a multi-year comparable window because a three-sale month tells you nothing on its own.

Block Island areas, in plain terms

• Old Harbor — the commercial village: ferry landing, hotels, restaurants, Victorian inns and the most walkable property on the island.
• New Harbor / Great Salt Pond — boating center, marinas, moorings; strong demand from sailors.
• Corn Neck Road / north end — Crescent Beach frontage, sunrise-side homes, Sachem Pond and the North Light.
• Southeast Light / Mohegan Bluffs — dramatic clay bluffs and ocean views, top of the market, and the most erosion-sensitive land on the island.
• Center Road and the west side — rolling farmland, stone walls, Rodman's Hollow conservation land, and larger private parcels.

Why buyers choose Block Island

Scarcity. There will never be more Block Island, and roughly 40% of it can never be built on thanks to decades of work by the Block Island Conservancy, the Nature Conservancy and the town. That produces 17 miles of beach, the Greenway trail system, two lighthouses, and a village that has resisted franchise development. New Shoreham runs its own school (K-12) — small by any standard; confirm current programming directly with the school. Access is by Interstate Navigation ferry from Point Judith (about an hour, or 30 minutes on the high-speed), seasonal ferries from Newport and New London, or a short flight from Westerly.

What to check before you buy on Block Island

Water and septic, first and always. There is no municipal sewer for most of the island and water supply is limited; many homes use wells and cisterns. Get an ISDS inspection, understand system capacity relative to bedroom count and rental occupancy, and test water quality and yield. Replacement or upgraded systems on an island cost materially more than on the mainland. Second, insurance and exposure. Flood zone, wind coverage, hurricane deductibles and erosion are central underwriting questions, particularly near Mohegan Bluffs and Crescent Beach. Get real quotes during your inspection period. Third, construction cost and permitting. Every board, appliance and tradesperson arrives by ferry. Assume renovation costs well above mainland pricing, verify contractor availability before you commit to a project, and check both town zoning and CRMC jurisdiction for anything near the shore. Fourth, rental rules and economics. If your plan depends on summer rental income, confirm New Shoreham's current registration, licensing and occupancy requirements in writing, and review actual booking history rather than projections.

Taxes and costs to plan for

New Shoreham's residential tax rate has historically been among the lowest in Rhode Island, but assessments are the highest, so evaluate the actual annual bill. Then add insurance, water and septic maintenance, off-season caretaking, ferry freight, and the reality that maintenance labor is scarce and priced accordingly. Confirm the current rate and assessment before writing an offer. Sellers pay Rhode Island's real estate conveyance tax at closing.

Selling on Block Island

Plan for a long, well-marketed sale to a national buyer pool, not a two-week listing to local traffic. Documented rental income, a clean septic and water file, recent capital improvements and good photography carry disproportionate weight here. With 392 days as the recent average marketing time, pricing at the market rather than above it is the single biggest lever on how long you wait. For an appraiser's opinion of value on your Block Island property, request a home valuation here.

Search Block Island homes for sale

Browse current Block Island and New Shoreham listings below, updated directly from State-Wide MLS. Inventory is small and moves slowly, so save your search and we will notify you when new island properties list. Questions about septic capacity, flood and wind insurance, or rental licensing? Call PRG Premier Group at 401-288-3600.