Rhode Island Faces Severe Housing Crisis and Supply Shortage

News Summary

Rhode Island is struggling with a significant housing crisis, ranking lowest in the nation for housing supply. Governor Dan McKee has proposed plans for 15,000 new homes by 2030, but many developments face delays. The National Low Income Housing Coalition reports critical shortages of affordable units, and rising rental prices further exacerbate the problem. Local government actions are complicating the situation, leading to increased homelessness and economic challenges for the state’s vulnerable populations.

Rhode Island is currently grappling with a severe housing crisis, as a recent national housing report card reveals that the state ranks lowest in the country. According to data from Realtor.com, Rhode Island suffers from a significant housing supply gap, which is largely attributed to limited land availability. However, the report also suggests that the second-smallest state, Delaware, performs better, indicating that the lack of land may not be the sole issue confronting Rhode Island.

The report is particularly telling as it illustrates a stark divide, with states that received A and B grades primarily located in the South and Midwest. In contrast, six out of seven states that were marked with F grades can be found in the West and Northeast regions. Improved situations are evident in states like South Carolina, Iowa, and Texas, which have been awarded grades of A or A- for their housing efforts.

In response to this alarming crisis, Governor Dan McKee has laid out an ambitious plan aimed at constructing 15,000 new homes by 2030. However, his efforts come in the face of a challenging reelection bid in 2026, amidst low approval ratings. Despite these commitments, many critical housing developments under Governor McKee’s leadership, such as the Fane Tower project and the Superman building proposal, have faced significant delays and obstacles, remaining unaddressed.

The National Low Income Housing Coalition underscores the severity of the housing situation, reporting that Rhode Island has only 47 affordable rental units available for every 100 extremely low-income individuals. The definition of extremely low income in the state is categorized as 30% or less of the area median income. This further emphasizes the urgent need for additional units, with estimates indicating the state requires an extra 25,000 income-restricted housing units to adequately meet the demand of extremely low-income households.

The housing crisis has intensified due to the ongoing impacts of the COVID-19 pandemic, contributing to a drop in available affordable units from 51 per 100 last year to the current figure of 47. This decline highlights stagnant numbers in available income-restricted units, which have not increased since the pandemic commenced, even as demand continues to rise.

The affordability problem is also underscored by rental prices in the state’s capital, Providence, where the average rent stands at approximately $2,154. To avoid being cost-burdened—defined as spending more than 30% of income on housing—families would need to earn about $84,280 annually. In stark contrast, renters earning minimum wage can only afford around $780 per month without incurring significant financial strain.

Compounding the issue, local government actions are also at play. For instance, the mayor of Johnston is actively trying to block the construction of an income-restricted housing complex, leading to a variety of legal challenges. In another troubling example, Brown University has two deteriorating multi-family homes situated in Providence that have remained vacant for 20 to 30 years, despite the university’s considerable financial resources.

The lack of affordable housing has emerged as a critical concern within Rhode Island, with significant implications for rising rates of homelessness. Additionally, Providence residents face an impending 8% hike in property taxes, while non-profit organizations, including Brown University, will not be subject to these tax increases.

With demand for affordable housing greatly exceeding supply, and compounded by economic challenges, Rhode Island’s housing crisis poses a significant threat to its most vulnerable populations. Efforts to rectify this situation are crucial, but current developments suggest substantial hurdles remain ahead.

Deeper Dive: News & Info About This Topic

• Providence Journal: Why Rhode Island’s Pool of Affordable Apartments is Drying Up
• GoLocalProv: Brown is Hoarding Houses While Providence Has a Housing Crisis
• WPRI: Out-of-State Residents Now Buying Nearly 1 in 4 Homes Sold in Rhode Island
• Brown Daily Herald: RI House Speaker Shekarchi Unveils 2025 Housing Bill Package
• Turn to 10: Governor McKee to Unveil Statewide Housing Plan Housing 2030
• Wikipedia: Housing Crisis
• Google Search: Rhode Island Housing Crisis
• Google Scholar: Rhode Island Housing Affordability
• Encyclopedia Britannica: Housing Policy
• Google News: Rhode Island Housing