HousingWorks RI (HWRI) at Roger Williams University released the 2024 Housing Fact Book today. It outlines the lack of affordability facing Rhode Islanders when looking to secure or sustain a safe and affordable place to call home.
This year’s Housing Fact Book shows no single municipality in Rhode Island where a household earning the median homeowner income of $107,452 can affordably buy a home. Median single-family home prices continue to rise, and throughout Rhode Island’s municipalities, they have increased a range of 18 percent (Glocester) to 112 percent (Central Falls) since 2018. Moreover, home prices in ten towns—Bristol, Central Falls, Hopkinton, Middletown, Narragansett, Newport, Pawtucket, Portsmouth, Providence, and Woonsocket—rose 50 percent or more.
Renters do not fare much better. According to RIHousing’s 2023 Rental Survey, the average 2-bedroom apartment costs $2,107, and an income of more than $84,000 is required to affordably rent it. This exceeds the state’s median renter income by nearly $40,000.
The housing wage, an estimate of a full-time worker’s hourly wage to afford a modest rental home at HUD’s fair market rent (FMR) without spending more than 30 percent of their income on housing costs, continues to outpace Rhode Island rents. Of the top 20 occupations considered by Rhode Island’s Department of Labor and Training within the “Fastest Growing Occupations, 2020-2030 Projections,” 92 percent (108,828) of these 119,000 jobs do not pay the National Low Income Housing Coalition’s 2024 housing wage for Rhode Island of $33.20/hour. Only two of the top 20 occupations pay enough to affordably rent an average 2-bedroom apartment, which requires an hourly wage of $40.52; and none pay enough to buy the 2023 median single family home, which requires hourly wage $69.08.
Brenda Clement, HWRI’s Executive Director, stated: “While affordability challenges continue to maintain momentum, Rhode Island has taken some key steps in the General Assembly this past year to work to combat this crisis. The 2024 Housing Fact Book highlights state and federal investments including a pilot low-income tax credit program of up to $30M annually for five years, and the approval of a ballot initiative for a $120M bond up for vote this fall to increase the availability of long-term affordable homes and support community revitalization. While these are important steps in the right direction, funding from the federal State Fiscal Recovery Funds (SFRF) program continues to represent the most substantial source of funding for housing in the state. We must continue to increase efforts and do more at every level to ensure Rhode Islanders have a safe, secure, and affordable place to call home.”
Regionally, the 2024 Housing Fact Book examines twenty-year trends in the built environment and households, and found:
- The rate of growth for households outpaced population growth in all seven Census regions of the state. It was double or more in North RI, Southeast RI, South RI, and Central RI;
- Proportional shifts in the number of housing units by building type indicate a continued dominance of detached single-family housing units in five (North RI, East Providence County RI, Providence RI, Southeast RI, and South RI) of the seven regions;
- All regions experienced decreases in the proportion of renters paying less than 30 percent of their income on rent; and increases in renters paying 30-49 percent (i.e., cost burdened);
- All seven Census regions experienced proportional increases in single-person households. Six of seven regions experienced increases in two-person households (Southeast Providence County RI experienced a decrease); and
- Proportional shifts in population across ages show that all seven regions decreased in their proportion of residents aged 0-17, and 35-49, and increased in their proportion of residents aged 50-64, and 65-79. Three regions saw increases in the proportion of residents aged 80 and older.
HousingWorks RI will release the 2024 Housing Fact Book this morning during a breakfast event at the Providence Marriott Downtown.
Other key facts from this year’s book include:
- More than a third of Rhode Island households (143,023) pay more than 30 percent of their income toward housing costs, making them housing cost burdened and leaving less money for households to spend on personal needs and in support of our local economies.
- Rhode Island’s homeownership rates for Black, Hispanic, and Asian households are 9, 14, and 8 percentage points lower than the US rates.
- The state’s median single family home price for 2023 was $425,000, which would require an estimated monthly housing payment of $3,592, and an annual income of $143,687.
- Since the 2000 Decennial Census, the population of Rhode Island adults aged 50 and older has grown by nearly 123,000 people, and now comprises 39 percent of the state’s population compared to 29 percent in 2000.
The 2024 Housing Fact Book can be found electronically at www.housingworksri.org.
Update: Housing Network of Rhode Island Responds to HousingWorks RI Report on Affordability Crisis
“The latest HousingWorks RI Fact Book reveals a stark reality: no Rhode Island community is affordable for buyers earning under $100,000 per year, and renters must earn $75,000 annually to afford the average 2-bedroom rental, which is almost $30,000 more than the median income for renter households,” said Melina lodge, Executive Director of the Housing Network of Rhode Island.
“This crisis demands urgent action and with early voting already underway and Election Day fast approaching, every RI voter can act now by voting “Yes on 3.” “Yes on 3” will approve a $120 million housing bond, which will provide the resources needed to develop affordable homes for all Rhode Islanders. This bond is crucial—not just for building new affordable housing—but also for preserving existing homes and ensuring stability for those at risk of losing their homes.
Rhode Island cannot truly thrive and prosper without its residents having access to safe, decent and affordable homes. The data released in today’s Fact Book shows that we must take comprehensive action now to increase housing affordability, and every RI voter can play a part in that in this election.”