Rising Housing Costs in Rhode Island
Explore the housing affordability crisis in Rhode Island with rising house prices, increasing rents, widespread cost burdens, and a shortage of multifamily homes. Learn about the challenges faced by residents and the efforts of organizations like HousingWorks RI to address these issues.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Rhode Island Rhode Island 2017 Housing 2017 Housing Affordability Affordability Brenda Clement, Director, HousingWorks RI at RWU Prepared for Americorps Training, October 1, 2018
About HousingWorks RI at RWU Founded in 2004, integrated into Roger Williams University in 2014 Conduct research and analyze data related to housing affordability in Rhode Island Connect the dots between housing affordability and economic development, outcomes in health and education 2
House Prices Are Rising Again RI Median SF/MF Sale Prices, 2016-2018-Q2 $300,000 $280,000 $275,000 $255,000 $252,250 $239,900 $250,000 $240,000 $225,000 $225,000 $200,000 $209,000 $175,000 $182,500 $150,000 $125,000 $100,000 2016 2017 2018-Q1 2018-Q2 SF Sale Price MF Sale Price Single Family home price increased 17% from Year End 2016 to Q2-2018 Multifamily home price increased 32% in the same period $280K SF home price is affordable to an income of $83,758 the state s median household income is $58,387 3
As Are Rents Statewide Average 2-Bedroom Rent, 2012-2017 $1,450 $1,400 $1,385 $1,350 $1,288 $1,300 $1,250 $1,238 $1,176 $1,172 $1,200 $1,150 $1,154 $1,100 $1,050 $1,000 2012 2013 2014 2015 2016 2017 Rents have increased 18% since 2012, and 8% from 2016 to 2017 The 2017 2-bedroom rent of $1,385 is affordable to an income of $55,400 the state s median renter income is $31,519 4
Cost Burdens Are Widespread Regional Owner & Renter Cost Burdens 0% 10% 20% 30% 40% 50% 60% Northwest Northeast Providence SE Providence County Southeast South Central Owner Cost Burden Renter Cost Burden In total, across all income categories, more than 145,000 Rhode Island households, or 35%, spend more than 30 percent of their income on housing costs. 5
Not Building Enough Multifamily Homes Rhode Island SF/MF Units Authorized by Building Permits, 2007-2017 1600 1400 1200 1000 800 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 SF MF HWRI s Projecting Future Housing Needs Report, commissioned by RIHousing, projected the need for at least 32,000 Multifamily homes (units) and nearly 5,000 SF homes by 2025. In 2017, Rhode Island municipalities authorized permits for only 172 multifamily homes (units) and 981 single-family homes. 6
And Our Housing Stock Is Old 306,171 104,431 75% of Rhode Island s housing stock was built prior to 1980. Tied for third with Massachusetts as having the oldest housing stock in the country. All houses built before 1978 are likely to contain some lead-based paint. 7
Who Needs Housing They Can Afford? Michelle Deborah & Al $18,900 Annual Income: $28,484 Annual Income: Charlestown Home City: Cranston Home City: 28 Age: 68 / 70 Ages: Medical Secretary Occupation: Retired Occupation: Veteran Luis & Jennifer The Ortiz Family Annual Income:$39,360 Home City: Barrington Ages: 26 / 26 $78,600 Annual Income: Pawtucket Home City: 36 / 33 Ages: Retail Manager / Stay at home parent Occupations: Social Worker / Bank Teller Occupations: 8
Policy Recommendations 1. Increase investment in the development and preservation of homes affordable to working Rhode Islanders and those with special housing needs. 2. Make it easier to build the homes that are needed. 3. Make existing housing more affordable. 4. Develop a long-term strategy for meeting the State s housing needs. 11
LEARN MORE! LEARN MORE! On the web www.HousingWorksRI.org Facebook.com/HousingWorksRI Twitter @hwri Email info@housingworksri.org Telephone 401.276.4806 12
