R.I. 18th in country for high housing rental costs

RHODE ISLAND has the 18th highest rental costs in the country, according to a new report from the National Low Income Housing Coalition. / COURTESY NATIONAL LOW INCOME HOUSING COALITION
RHODE ISLAND has the 18th highest rental costs in the country, according to a new report from the National Low Income Housing Coalition. / COURTESY NATIONAL LOW INCOME HOUSING COALITION

PAWTUCKET – Incomes have not kept pace with rental costs, leaving affordable rental housing out of reach for many Rhode Islanders, according to a new national report.

The report, “Out of Reach,” from the Washington, D.C.-based National Low Income Housing Coalition, ranked Rhode Island 18th nationwide for high rental costs.

All of the New England states were in the top 25 for unaffordability, with Massachusetts ranking the highest at sixth, followed by Connecticut at eighth; Vermont, 13th; New Hampshire, 14th; and Maine, 23rd.

In Rhode Island, fair market rent for a two-bedroom apartment is $961 (up from $928 in 2014). In order to afford this level of rent and utilities, without paying more than 30 percent of income on housing, a household must earn $3,204 monthly or $38,452 annually, the report said.

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Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a housing wage of $18.49 per hour (up from $17.86 in 2014), the report said.

In Rhode Island, a minimum wage worker earns an hourly wage of $9. To afford the fair market rent for a two-bedroom apartment, a minimum wage earner must work 82 hours per week, 52 weeks per year. Or, a household must include 2.1 minimum wage earners working 40 hours per week year-round in order to make the two bedroom fair market rent affordable, according to the report.

In Rhode Island, 39 percent of Rhode Islanders are renting with a total of 159,244 renter households. The estimated average wage for a renter is $12.48.

Jim Ryczek, executive director of the Rhode Island Coalition for the Homeless stated, “This report verifies what we see day to day here in our state, that a gap remains between the incomes that people make and the cost of their housing. The Out of Reach report reminds us why the state programs that support affordable housing and homeless prevention are so critical. Now, more than ever, we need our elected officials to act boldly to assist Rhode Island residents in closing that gap, by either raising the minimum wage or lowering and subsidizing the cost of housing.”

The report stated that there is no state in the country where a minimum wage worker working full time can afford a one-bedroom apartment at the fair market rent.

Nationally, the challenges renters face are lagging wages, inconsistent job growth and the rising cost of living. And, as home ownership rates have reached historic lows, the rental market has tightened, driving up rental costs.

“Finding a decent, affordable rental is a challenge for all renters, but the poorest households are the most likely to be locked out the market entirely,” the report stated.

This year at the Statehouse, affordable housing advocates in Rhode Island are promoting several pieces of legislation (S306 and H5514) to fund Opening Doors RI, the state’s plan to end homelessness.

“Housing is the cornerstone to our state’s economic growth and investing in affordable housing production will help keep our state on the path to economic recovery,” explained Melina Lodge, Director of Programs for the Housing Network of RI, the state’s association of Community Development Corporations. “The Housing Network, and its sixteen affordable housing developers, look forward to working with the General Assembly and governor to make sure that the pieces of the affordable housing puzzle are in place and fully funded.”

Hawaii had the highest rental costs in the country. Arkansas and Kentucky had among the lowest.

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