Housing affordability is getting worse in Rhode Island

DATA COLLECTED BY HousingWorks RI at Roger Williams University shows that homeowners are spending more of their income on housing costs than in years past. / COURTESY HOUSINGWORKS RI
DATA COLLECTED BY HousingWorks RI at Roger Williams University shows that homeowners are spending more of their income on housing costs than in years past. / COURTESY HOUSINGWORKS RI

PROVIDENCE – Rhode Island housing has become significantly less affordable to many state residents over the past year, due to rising real estate values and other factors, according to the 2018 Housing Fact Book.

Released Friday, the Fact Book illustrates why so many residents of the Ocean State are cost-burdened. Both renters and those seeking to purchase homes have lost ground in affordability between 2016 and 2017.

More than 145,000 state households, or 35 percent, are considered cost-burdened in that they spend more than 30 percent of their income on housing expenses.

Only one city – Central Falls – had a median sale price for a single-family home in 2017 that could be comfortably affordable for a family with a budget under $50,000.

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And renters have been affected as well. Only four communities – Central Falls, Burrillville, Woonsocket and Pawtucket – have a median rental for a two-bedroom apartment that is affordable for households earning $30,000 or less.

Higher incomes have also been impacted. Homebuyers with incomes of $70,000 – well-above the state’s median – are now restricted to seven cities or towns.

The measure of affordability identified in the report is a homeowner who spends no more than 30 percent of their income on housing, including utilities.

Released by HousingWorks RI at Roger Williams University, the report indicates Rhode Island had the fastest home-sale price growth in New England in 2017, at 7 percent. The Ocean State was the only state in New England that exceeded the national growth rate of 6.3 percent.

Stephen Antoni, the HousingWorks RI advisory board chairman, said rising prices may be good news for owners, but many more middle-income buyers are stretching resources to get into the market.

“We are simply not building enough,” he said. “We need more types of housing – the ‘missing middle’ if you will – to meet the needs of today’s Rhode Island households, especially those new to the market and older households wishing to downsize.”

Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.

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