February 2026 Multifamily Market Report – Coastal Connecticut & Southern Rhode Island
The Seaport Multifamily Brief™ | Powered by CoStar Data and Seaport Due Diligence
We’ve officially launched The Seaport Multifamily Brief™, a biweekly research publication covering multifamily investment trends across Coastal Connecticut and Southern Rhode Island. This inaugural issue blends CoStar Search Analytics (February 2026) with Seaport Due Diligence and underwriting analysis to provide institutional-grade market intelligence.
Washington County, RI – Market Snapshot
According to CoStar Search Analytics (February 16, 2026):
- Vacancy: 2.5%
- Rent Growth: -0.7% YoY
- Market Cap Rate: 7.1%
- Inventory: 4,007 units
- Units Under Construction: 0
- 12-Month Absorption: 8 units
Source: CoStar Search Analytics – Washington County Multifamily Report, February 2026.
Transaction Intelligence – What Capital Is Actually Doing
Market reports tell us direction. Closed sales tell us conviction. Two recent coastal trades illustrate current investor psychology:
1 Harmony Street – Stonington Borough, CT
- Closed: $1,250,000
- Original Ask: $1,495,000
- Units: 4
- Days on Market: 140
- Buyer Profile: Cash
Takeaway: Premium micro-location, but pricing discipline required. This traded closer to a hospitality-adjacent hybrid than a purely stabilized 4-family.
104 Second Street – Newport, RI
- Closed: $2,799,000
- Original Ask: $3,399,000
- Units: 2
- Buyer Profile: Cash
Takeaway: Trophy coastal product continues to attract capital, often independent of cap rate metrics.
What This Means for Multifamily Investors
We are not in a distressed market. We are in a normalization market. The pandemic rent spike was the exception — not the rule. This is a Yield Discipline Phase.
Investors today must underwrite:
- Real vacancy
- Conservative rent growth
- Insurance and operating cost pressure
- Interest rate sensitivity
Seaport Coastal MF Stability Index™
Washington County Score: 74 / 100 – Stable with Softening Momentum
The Seaport Signal™
Limited supply remains supportive, but slowing absorption is the variable to monitor in 2026. Investors who rely solely on historical rent growth may misprice risk. Disciplined underwriting will outperform optimism.
Market data referenced above is sourced from CoStar Search Analytics (February 2026 editions). Interpretation, underwriting analysis, and Stability Index scoring are proprietary to Seaport Commercial.
View the full Seaport Multifamily Brief™ (Issue #1) on SeaportRE.com
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