Characterizing housing affordability in “crisis,” RI Housing Works at Roger Williams University found only four communities in Rhode Island meeting the state “goal” of achieving 10 percent of its housing stock as Low- and Moderate-Income Housing.
That 10 percent figure, established in 1991, is well below actual needs, according to the 2024 HousingWorks RI’s 20th annual Housing Factbook. “…In actuality local housing needs have turned out to be far higher: statewide 26 percent of owner households and 48 percent of renter households today are cost burdened.” Cost burdened is defined as paying more than one third of a household’s income on housing costs.
The Factbook comes out just ahead of an election that includes a $120 million housing bond issue, the fourth in the last several years. It found a third of Rhode Island households – 143,023 – cost burdened, and the state’s housing stock the third oldest nationally.
Home prices in Newport, Middletown, and Portsmouth have risen more than 50 percent since 2018
Locally, only Newport meets the 10 percent threshold, the highest in the state at 15.64 percent. The only other communities reaching the 10 percent threshold are Central Falls, Woonsocket, and Providence.
While Newport meets the threshold, home ownership remains elusive for many in the city. The median (the midpoint between the highest and lowest prices) house price in Newport, according to the Factbook, is $893,000, meaning to afford a house at that price it would take an annual income of $284,479, with monthly housing payments of $7,112.
Newport numbers are skewed because of the high-priced mansions in the city.
Based on 2023 median single family home prices there is no community in Rhode Island where someone earning the state’s median household income of $81,370 could afford to purchase a home, according to the report. Based on the 2023 average two-bedroom apartment rent, there’s only one community, Burrillville, that renters could afford, based on the median renter income of $45,560.
The number of R.I. communities where a household earning under $100K can afford a home is zero
HousingWorks attributes deteriorating conditions to the U.S. foreclosure crisis of 2008 and the global pandemic of 2020.
Over the next several days we’ll look at various aspects of the HousingWorks report. Today, we’ll look at findings in the communities around Newport.
- Newport
- Median home price – $893,000, an increase of 63 percent over the last five years. Average two-bedroom apartment rental has increased slightly over the five years, from $1,914 to $1,923.
- Median household income is $81,330, far below the $284,479 annual income needed to purchase a median priced home in Newport.
- Some 15.64 percent of housing exceeds the 10 percent state goal. However, 4,930 of the city’s 10,645 households fall below the Department of Housing and Urban Development’s 80 percent area median income.
- Jamestown
- Median home price – $1,015,000, an increase of 28 percent over the last five years.
- Median household income is $131,875, far below the $311,610 annual income needed to purchase a median priced home in Jamestown.
- Some 4.42 percent of housing exceeds the 10 percent state goal, while 490 of the town’s 2,499 households fall below the Department of Housing and Urban Development’s 80 percent area median income.
- Little Compton
- Median home price – $950,000 an increase of 35 percent over the last five years.
- Median household income is $136,389, far below the $282,446 annual income needed to purchase a median priced home in Little Compton.
- Some 0,53 percent of housing exceeds the 10 percent state goal, while 405 of the town’s 1,560 households fall below the Department of Housing and Urban Development’s 80 percent area median income.
- Middletown
- Median home price – $722,500 an increase of 56 percent over the last five years. Average two-bedroom apartment rental has increased 13 percent over the five years, from $1,922 to $2,179.
- Median household income is $97,555, far below the $238,168 annual income needed to purchase a median priced home in Middletown.
- Some 4.80 percent of housing exceeds the 10 percent state goal, while 3,020 of the town’s 6,977 households fall below the Department of Housing and Urban Development’s 80 percent area median income.
- Portsmouth
- Median home price – $697,000 an increase of 51 percent over the last five years. Average two-bedroom apartment rental has decreased 4 percent over the five years, from $2,169 to $2,082.
- Median household income is $107,101, far below the $227,419 annual income needed to purchase a median priced home in Portsmouth.
- Some 2.66 percent of housing exceeds the 10 percent state goal, while 2,530 of the town’s 7,323 households fall below the Department of Housing and Urban Development’s 80 percent area median income.
- Tiverton
- Median home price – $450,000 an increase of 30 percent over the last five years. Average two-bedroom apartment rental has increased 9 percent over the five years, from $1,865 to $2,036.
- Median household income is $92,444, far below the $152,669 annual income needed to purchase a median priced home in Tiverton.
- Some 4.26 percent of housing exceeds the 10 percent state goal, while 2,180 of the town’s 6,782 households fall below the Department of Housing and Urban Development’s 80 percent area median income.