
HousingWorksRI last week released a report showing that affordable housing remains out of reach for Rhode Islanders in 30 of the state’s 39 communities. The relatively high cost of living here forces tough decisions for those on the bottom rungs of income levels.
Kate Brewster, executive director of the Poverty Institute at Rhode Island College, recently took some time to discuss the impact of housing costs on residents.
PBN: HousingWorksRI released a report last week that showed housing affordability has remained largely unchanged. Can you talk about where housing costs fit in with other expenses?
BREWSTER: For families with young children, housing and childcare represent the most significant expenses in a household budget, according to a study we publish that looks at cost of living in Rhode Island. In fact, housing accounts for close to one-quarter of monthly costs. These costs are followed by food, transportation and health care, but the latter assumes employers pay at least 70 percent of the cost of employer-based insurance, which is not always case.
There is government assistance available to help some low-income families pay for childcare, health care and food. There is virtually no assistance available, however, to help pay for the high cost of housing in the Rhode Island.
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PBN: If people are feeling squeezed in this economy, where does housing fall on the priority list? Are people giving up other things – medicine, vacations, etc. – to keep a roof over their head?
BREWSTER: People will sacrifice a lot to keep a roof over their head, including forgoing health insurance and medication, formal childcare, and utilities. When possible, people will also seek relief through community-based organizations. The spike in the number of people visiting food pantries and meal sites is an indication of this. The Rhode Island Community Food Bank reported that last year, record numbers of Rhode Islanders sought help at food pantries, an increase of more than 45 percent from two years earlier. This increase has put a strain on community safety net programs that help families make ends meet.
We also know that an average of 200 families lose their health insurance every month through the RIte Care program for failing to pay their premiums. These are often families facing very difficult choices about what bills to pay that month, and are perhaps choosing housing and food over health insurance.
PBN: What happens when people cannot make the rent or the mortgage? Where do they go?
BREWSTER: Rhode Island Housing is the first place families should call when they are experiencing difficulties paying their mortgage. Its Help Center has counselors available to provide advice and education on a range of housing issues, from preparing for home ownership to preventing foreclosure. Rhode Island Housing also administers the Hardest Hit Fund, which provides help for homeowners who are struggling to pay their mortgage and at risk of foreclosure.
Rhode Island Housing also has information about subsidized housing in the state, but there are long waiting lists for families.
The Community Action Programs located throughout the state administer the Road Home program, which provides emergency funds for rent, security deposits and mortgage payments for households experiencing a temporary emergency housing crisis.
Finally, for those faced with eviction, Rhode Island Legal Services may be able to provide assistance or representation, and the Rhode Island Coalition for the Homeless is a resource for families who are homeless or may become homeless, offering information about shelters and other housing assistance.
PBN: What is the affect of this on family dynamics? The broader economy?
BREWSTER: Stable, affordable housing is a key to family security. When a family loses their home or apartment, this instability can be jarring on multiple levels, from the children’s education to the parents’ ability to get to work. Foreclosures and evictions also impact the surrounding community, as neighborhoods lose families who support local business and are active in their communities.
On the broader scale, the lack of affordable housing is a double whammy for families and for our economy. Families who contribute a disproportionate amount of income towards housing are forced to sacrifice other necessities and spend less on goods and services, which in turn hurts the local economy.
Lack of affordable housing is a significant impediment to growing jobs in our state. According to business location experts, companies looking to locate (or re-locate) a business consider the availability of affordable housing as a factor in their decision. It can be a driving force as to whether their workers will be willing to move with the job or whether a company will be able to attract new talent.
PBN: What about geographically? Is housing an issue more in certain parts of the state?
BREWSTER: The HousingWorks Factbook makes it clear that affordable housing is an issue in every corner of the state. A median-priced home was affordable to families earning the median-income in less than one quarter of the cities and towns in the Ocean State. And several of those cities and towns had the highest foreclosure rates in the state.