Study: R.I. homes still too costly for many

PROVIDENCE – The median price of a single-family home in Rhode Island has fallen significantly since 2005, dropping from $282,900 to $234,900 by the end of 2008, but the decline has not changed housing affordability, according to HousingWorks RI’s 2009 Fact Book, released today.
To afford the median-valued home in Rhode Island, a family last year needed to earn $71,298, according to the report. But the average private-sector wage in Rhode Island, the report says, was just $38,532. A family earning the median household income of $53,568 could only afford a home in nine of Rhode Island’s 39 municipalities, the report says.
In a statement, HousingWorks RI Executive Director Nellie M. Gorbea said the state’s housing stock is now at a “crucial” point.
“Despite the drop in home prices, many Rhode Island residents are still priced out of the market, whether they are trying to buy a home or rent one,” Gorbea said. “A shortage of affordable homes affects all of us. Without a stable and varied supply of affordable homes, our state is at a great disadvantage to keeping its competitive edge and retaining a skilled work force. Housing construction is key to the creation of new direct and indirect jobs and is an indispensable component to revitalizing the state’s economy.”
The report out today has not much changed HousingWorks’ longstanding opinion that more affordable housing is needed in the Ocean State. When HousingWorks RI released its 2007 Fact Book, for example, the coalition said that a family would need to have an annual income of $78,874 to afford a median-priced home.
While there are now 36,278 housing units that qualify as affordable in Rhode Island – about 8.5 percent of the total housing stock – the state needs an additional 6,283 units to meet the 10 percent threshold mandated by the Low and Moderate Income Act of 2004.
For additional information about HousingWorks RI, a coalition with more than 120 member organizations, visit www.HousingWorksRI.org.