News Summary

Rhode Island is experiencing a severe housing crisis as recent data reveals rising rental prices that median earners can no longer afford. With nearly half of renters classified as severely cost burdened, the state grapples with an alarming shortage of rental units and rising single-family home prices. The situation demands immediate action from local leaders and state officials to address the growing challenges of affordable housing.

Providence

Rhode Island’s housing crisis is escalating, as a recent report reveals alarming trends in rental affordability for median earners in the state. For the first time, no community in Rhode Island is affordable for households earning under $100,000 annually, and this year marks a significant turning point—the median renter can no longer afford a two-bedroom apartment anywhere in the state.

To affordably rent the average-priced two-bedroom apartment in Rhode Island, a household needs an annual income of $60,320. However, current data shows that the average renter in Rhode Island earns only $48,434 in 2024, highlighting a detrimental gap between income levels and housing costs. This discrepancy has led to over one-third of Rhode Island households, totaling 142,920, being classified as “cost burdened,” meaning they spend more than a third of their income on housing costs. Among these, 44 percent are categorized as “severely cost burdened,” paying over 50 percent of their income on housing.

The rental market in Rhode Island is currently exceedingly tight, with a vacancy rate at a low 2.6%. This figure is significantly below the healthy rental market rate of 5-8%, indicating a substantial shortage of available rental units. In the Providence metropolitan area, the rental vacancy rate is slightly better at 3.2%, yet still fails to alleviate the housing crunch.

In response to the growing housing crisis, state officials have begun implementing laws aimed at encouraging home construction. These measures include easing zoning restrictions and streamlining the permit process to facilitate new developments. However, local leaders retain significant authority over housing construction, affecting decisions about what, where, and how homes are built. Some towns, like Johnston, are actively contesting large multifamily developments in court, which further complicates the housing situation across the state.

The focus on single-family homes is contributing to inefficient land use in Rhode Island and hinder the state’s efforts to meet affordable housing targets. Since the inception of the 1991 Low and Moderate Income Housing law, only eight out of numerous municipalities have managed to meet the state’s 10% affordable housing target for 2025. An update to the housing law now includes homes with Section 8 vouchers and mobile homes in the definition of affordable housing, which may increase the number of municipalities meeting this target.

The report from HousingWorks RI shows a staggering increase in single-family home prices in Rhode Island—rising faster and higher than anywhere else in the country. Housing costs in the state have risen over 60% since 2018, while wages have only grown by less than 30%. The state’s median single-family home price reached $475,000 in 2024, necessitating an annual income of approximately $158,263 to afford such a home.

Furthermore, rental price increases in both Rhode Island and Connecticut are the highest in the New England region at 4%. The state is experiencing slow new housing construction, ranking among the slowest states for new housing development. A poll conducted by the University of Rhode Island indicates that 93% of residents view housing costs as a significant problem, with a quarter of them having struggled with rent or mortgage payments over the past three years. Additionally, Rhode Island faces an extensive waiting list for affordable housing, with individuals waiting several years for assistance.

As the housing crisis deepens in Rhode Island, the state has no immediate solutions in sight. The pursuit of affordable living conditions for residents remains critical, highlighting the need for collaborative efforts between state officials, local leaders, and community organizations to address these pressing issues in housing availability and affordability.

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Additional Resources

• WPRI: RI Housing Costs Rise Fastest in New England
• Boston Globe: RI Home Prices Fact Book 2025
• GoLocalProv: Brown is Hoarding Houses While Providence Has a Housing Crisis
• Brown Daily Herald: New 176-Unit Permanent Supportive Housing Complex Opens in Providence
• Turn to 10: Voucher Wait Lists Grow in Rhode Island Housing Crisis
• Wikipedia: Housing Crisis
• Google Search: Rhode Island housing crisis
• Google Scholar: Rhode Island housing
• Encyclopedia Britannica: Housing Policy
• Google News: Rhode Island housing

Author: STAFF HERE PROVIDENCE WRITER

The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.