The fact that Rhode Island needs to make a deeper financial commitment to low-income housing programs was admirably brought to light last month by a coalition of community activists, clergy and legislators.
By bringing the matter to the forefront, the coalition successfully pressured Gov. Lincoln Almond to reconsider — and then compromise on — his proposal to freeze millions of dollars targeted for a low-income housing program.
The battle, of course, is far from over.
Those fighting for more substantive support of low-income housing face a significant challenge as the 2002 legislative session unfolds and the governor and lawmakers search for ways to minimize as best they can a state budget deficit.
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We hope the low-income housing supporters are successful in their efforts. If we truly want a renaissance of any significance to take hold, it must reach into the urban neighborhoods located in the majority of our cities and towns. Available, affordable housing and widespread home ownership must be a vital part of the movement.
That brings us to another housing concern – one that has yet to capture the public’s interest, but one that represents a very real dilemma in terms of economic development.
It is becoming increasingly difficult for young people to purchase a "starter home" in Rhode Island.
The past couple of years have seen a shift in building – a focus on subdivisions lined with $250,000 to $350,00 homes. Even individuals who have been a part of the workforce for several years are finding the cost of the "American Dream" has escalated out of reach.
According to the most recent U.S. Census Bureau report, 60 percent of the state’s 408,000 housing units were occupied by their owners – well below the national home- ownership rate of 66 percent.
Rhode Island KIDS COUNT notes in a review of U.S. Census figures, that "median family income has not kept pace with the cost of housing in Rhode Island, putting safe, affordable housing out of reach for many families."
KIDS COUNT also says; "Homeownership can strengthen neighborhoods as well as families. Homeowners are less likely to move than renters are. Owners stay in a community up to four times longer than renters do. When neighbors stay in one place longer, they have more time to get to know one another, to establish social networks, and to be involved in the schools, churches and other institutions in their neighborhoods."
One would have to be shortsighted not to recognize why this issue is so critical to the business community. The recession has forced businesses big and small to make themselves more efficient. That means hiring the best available, and maybe, more importantly, retaining and investing in their best employees.
But where is the return on investment if young talent heads south or west, because that’s where they can afford a three-bedroom house with a modest back yard?
Simply put, it is good business for people to own the home in which they live. The KIDS COUNT review is right on the mark. If our young professionals cannot afford to buy homes in Rhode Island, they are bound to look somewhere else. That’s not good for our economy.
