Affordable housing is scarce in RI. What income do you need to live in these towns? (2024)

Nearly nowhere is affordable – and Rhode Island trails the rest of the nation in building new housing.

Amy RussoThe Providence Journal

New data is out on Rhode Island's housing crisis. Spoiler alert: It's not getting much better.

On Friday, HousingWorksRI, a research hub at Roger Williams University, unveiled its annual fact book, offering a slew of stats on how the housing market played out in 2021.

While affordability remains limited, construction has barely increased. In 2021, there were 469,161 homes available, up from 468,171 the previous year – an increase of fewer than 1,000.

Building permits were similarly stagnant. In 2021, there were 1,495 permits for new housing, up from 1,420 the previous year – an increase of just 75.

Census data shows that in 2021, Rhode Island came last in its number of residential building permits, while states with similar-size populations, such as Delaware and Montana, saw 8,545 and 6,981 such permits, respectively.

Within New England, Rhode Island's lack of housing construction per capita has been an evident trend for years – one The Providence Journal has explored in depth.

Want to sell your house?Rhode Island real estate agents share what you need to know

The paucity of new construction has been particularly apparent in multifamily homes.

According to HousingWorksRI Director Brenda Clement, the Department of Housing and Urban Development "has reported thatRhode Island is the only New England state where multifamily construction declined in each quarter year-over-year" from the fourth quarter of 2021 through the second quarter of this year.

“We must continue to work together across the state with all our municipalities to implement the framework that will enable a diversity of housing options for our residents – through infrastructure and revised land use regulations," Clement said.

HousingWorksRI measures affordability using the state's median household income. Anyone spending more than 30% of their income on housing is considered cost-burdened. According to HousingWorksRI's data, unless you make more than $70,000, there is not a single city or town in Rhode Island where you would find an affordable home. That income threshold has risen slightly from the previous year.

More data:Providence County, Rhode Island Real Estate Market Report

Pawtucket, Central Falls and Woonsocket ranked as the most affordable communities, though homeowners would need to earn upwards of $77,000 to live there comfortably. The least affordable communities were Block Island, Jamestown and East Greenwich, where owners would need to make from $180,000 to upwards of $300,000 to find affordable property.

Renters have it only slightly easier. Burrillville, Bristol and Woonsocket ranked as the most affordable areas. Renters there would need to make anywhere from $37,000 to $48,000 to be comfortable.

Least affordable for renters were Cumberland, Warren and East Providence, though there was insufficient data for many other areas that didn’t make the list.

Members of Rhode Island's congressional delegation who spoke at an event announcing the data's release warned of the dire situation. Sen. Sheldon Whitehouse emphasized that "there's a lot more at stake than just housing," emphasizing housing's connection to issues such as recovery from addiction and re-entry into society after prison.

That last issue is long established. In 2015, the Rappaport Institute for Greater Boston at Harvard’s Kennedy School released a study of 122 formerly incarcerated men and women attempting to find housing in the Boston area.

“Securing stable housing consistently ranked among the biggest concerns for those just released from prison,” the study read. “Six months out of prison, 35% were staying in temporary or marginal housing, and this percentage grew to 43% by 12 months out of prison.”

In Rhode Island, some progress has been made when it comes to funding of affordable housing. Gov. Dan McKee, who also spoke at Friday's event, touted his administration's recent allocation of $250 million to affordable housing. But advocates for the homeless, who've protested at the State House, have argued that a more rapid fix is needed than waiting for construction. (According to the Rhode Island Coalition to End Homelessness, "there is an average wait of over one month for individuals and families seeking shelter.")

"I see it at the State House," said Secretary of State Nellie Gorbea, referring to "individuals who have now set up shelter in tents in front of the State House."

“We have to act now," said Sen. Jack Reed, "because it’s getting worse, not better”

Affordable housing is scarce in RI. What income do you need to live in these towns? (2024)

FAQs

What is the income limit for affordable housing in RI? ›

2023 Income Limits
Number of PersonsModerately Low IncomeExtremely Low Income
Providence-Fall River, RI-MA
One$57,350$21,500
Two$65,550$24,600
Three$73,750$27,650
27 more rows

What is the housing affordability in Rhode Island? ›

For a minimum wage-earner working full time, an affordable apartment would cost no more than $468 a month. For a median-income household in RI, an affordable home would be no more than $1,421 a month.

What income is considered poverty in RI? ›

1-person household: $377 a month (limit of $15,060/year) 2-person household: $511 a month (limit of $20,440/year)

What is the most affordable area in Rhode Island? ›

What is the cheapest place to live in Rhode Island? The cheapest place to live in Rhode Island is Central Falls. It offers affordable healthcare, which is 6.9% lower than the national average.

What is the income limit for rent relief in RI? ›

Eligible households must be at or below 80% of Area Median Income (AMI), which translates to approximately $69,200 annual income for a family of four in most parts of the State. Income Limits are available online at www.RentReliefRI.com.

Who qualifies for affordable housing in us? ›

Eligibility criteria for the Housing Choice Voucher is determined by income level. Very low-income families (income at or below 50 percent of area median income) and a few specific categories of families with incomes up to 80 percent of area median income are eligible to apply.

How much of my income should go to housing? ›

Deciding how much you should pay for rent isn't always a straightforward calculation. Going above the recommended threshold of 30% of your gross monthly income can make it harder to cover other expenses and meet savings goals.

Is there a shortage of housing in Rhode Island? ›

Across Rhode Island, there is a shortage of rental homes affordable and available to extremely low income households (ELI), whose incomes are at or below the poverty guideline or 30% of their area median income (AMI).

Why is rent so high in RI? ›

State officials estimate more than 97% of multifamily housing units were occupied last year. And an overcrowded rental market pushes up prices. HousingWorks RI estimates nearly half of all Rhode Island renters pay more than the 30% of their monthly income that experts recommend should go toward housing costs.

How much do you need to make to live comfortably in RI? ›

$29,400 is the 25th percentile. Salaries below this are outliers. $40,200 is the 75th percentile.

What household income is considered poor? ›

Federal Poverty Level (FPL)
Family size2023 income numbers2024 income numbers
For individuals$14,580$15,060
For a family of 2$19,720$20,440
For a family of 3$24,860$25,820
For a family of 4$30,000$31,200
5 more rows

What is the maximum income to qualify for Medicaid in RI? ›

Who is eligible for Rhode Island Medical Assistance (Medicaid)?
Household Size*Maximum Income Level (Per Year)
1$20,030
2$27,186
3$34,341
4$41,496
4 more rows

What is the safest town to live in Rhode Island? ›

BRISTOL, R.I. (WPRI) — Bristol has once again been recognized as the safest town in Rhode Island, according to Safewise. The annual Safest Cities report revealed that Bristol's violent crime rate is 0.5 incidents per 1,000 residents, while its property crime rate is 3.2 per 1,000.

What town has the lowest property taxes in Rhode Island? ›

The average property tax rate in Rhode Island for 2022 is 16.93 with the highest being Providence at 24.56 and the lowest being Little Compton at 6.04.

Is it cheaper to live in RI or MA? ›

1. Cost of Living: Rhode Island typically offers a slightly more affordable cost of living compared to Massachusetts, making it an attractive choice for those on a budget. Housing prices in MA, especially around major cities like Boston, tend to be higher.

What is the guaranteed income program in RI? ›

Providence Guaranteed Income is a philanthropically funded pilot program that will provide monthly, recurring cash payments given directly to individuals. It is unconditional, with no strings attached and no work or education requirements.

What is the income limit for Healthsource RI? ›

You may qualify for CSR plans if you earn less than $36,450 for an individual or $75,000 for a family of four.

What is 10 affordable housing in Rhode Island? ›

The Rhode Island Comprehensive Housing Production and Rehabilitation Act of 2004 and Rhode Island Low and Moderate Income Housing Act (Rhode Island General Laws 45-53) general requires that 10% of each municipalities' housing stock be "affordable".

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