Builders Patch | HousingCount: Rhode Island affordable housing data and latest news
Rhode Island
Summary
Rhode Island state is facing challenges to housing affordability. For every 100 low-income renter households, there are 67 units available that are affordable to them. The median household income in the state is $41,277 whereas the median rent in the state is $929. Currently, the state is short over 14,517 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.
| 37.7% | share of renter households |
| 42.1% | share of low-income households |
| 44.4% | share of rent-burdened households |
Renter population data
| Households | % share |
|---|---|
| Renter households | 160,918 |
| Homeowner households | 265,851 |
| Total households | 426,769 |
| Low-income renter households |
Renter households by income group
| Households | % share |
|---|---|
| Extremely low-income (≤30% AMI) | 23,485 |
| Very low-income (31-50% AMI) | 20,713 |
| Low-income (51-80% AMI) | 23,539 |
| All low-income households (<80% AMI) | 67,737 |
Rent-burdened households
| Share of income spent on rent | Households | % share |
|---|---|---|
| Moderately rent-burdened | 37,497 | 23.3% |
| 30.0–34.9% | 14,964 | 9.3% |
| 35.0–39.9% | 9,936 | 6.2% |
| 40.0-49.9% | 12,597 | 7.8% |
| Severely rent-burdened | 33,975 | 21.1% |
| ≥50.0% | 33,975 | 21.1% |
| All rent-burdened households | 71,472 | 44.4% |
Affordable housing shortage
| Median household income | Amount ($) |
|---|---|
| in 2010 | 29,864 |
| in 2021 | 41,277 |
| Increase (2010–2021) | 38.2% |
| Median rent | Amount ($) |
|---|---|
| in 2010 | 749 |
| in 2021 | 929 |
| Increase (2010–2021) | 24.0% |
| Supply, demand & shortage | Units |
|---|---|
| Supply (current stock) | 29,681 |
| Demand (total units needed) | 44,198 |
| Shortage | 14,517 |
Finance institutions
Rhode Island Housing
Rhode Island Housing
44 Washington Street
Providence, RI 02903-1721
List of loan programs
- Acquisition and Revitalization Program
- Construction & Bridge Financing
- Development Mortgages
- HOME Program & Housing Trust Fund
- LeadSafe Homes Loans
- Low-Income Housing Tax Credits (LIHTCs)
- Preservation Loans
- Rental Housing Production Program
- Thresholds Program
- Section 811
QAP document (Qualified Allocation Plan)
The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.
Housing news
How Fed Rate Cuts Impact the Housing Market
The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.
Key Takeaways:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.
While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.