As a town, Little Compton has done a remarkable job of preserving farmland and open space. After having our first child, Little Compton was high on my wife’s and my list due to its rural character and landscapes. We bought our home here in early 2020 and it’s not news to anyone that the price of buying a home has nearly doubled since then. This has left others in my generation on the outside looking in. If a homebuyer lacks equity in an existing home, buying a home here is nearly impossible. On top of the high prices, Little Compton exclusively requires an additional transfer tax to be paid at closing. This tax further restricts first-time homebuyers.

The median home price in Little Compton was $950,000 in 2023. At the current transfer tax rate, a $950,000 home requires an additional $20,000 cash. $20,000 covers over a year of daycare, buys a low mileage car, or replaces a roof. It withdraws more than 10 percent from the 20 percent down payment on a $950,000 home, resulting in higher mortgage payments and monthly mortgage insurance costs. This tax is a deterrent and no other nearby town requires it. In this respect, we are alone, only Block Island and Nantucket have similar transfer taxes and both have enacted exemptions for primary residences of first-time homebuyers.

Forces beyond Little Compton’s control have raised housing costs and work is underway to reduce these costs. The fact remains that the transfer tax is the only housing cost controlled by Little Compton voters. Voters increased the transfer tax exemption by $150,000 last year. Why was this exemption, enacted during a “housing crisis,” set at a lower percentage of median home price than the prior exemption when it was enacted in 2016? Why doesn’t Little Compton exempt first-time homebuyers?

I’ve read that the Ag Trust is hoping to lease farmland and housing together. A more effective solution would be to emulate the transfer, led by the WLCT, of Berry Hill Farm in Westport. Find receptive property owners, have them subdivide the farmland and housing lot, conserve the farmland, and concurrently deed restrict the value of the existing/new house to be owned by new farmers. People need housing stability, not more renting, in order to grow a family and establish roots.

Little Compton should focus on the number of farmers left in town, not solely emphasize the number of unprotected acres. If Rhode Island has the most expensive farmland per acre, prioritize the above new farmers who apply with viable plans to best utilize the land economically and help establish capable and younger farmers for the long-term. If we need both housing and conservation, continuing to tax to such an extent has to be justified, both financially and demographically.

I am a member of the Little Compton Budget Committee until the next Financial Town Meeting.

Peter Bermudez

Little Compton