One in four working families in Rhode Island spends more than half of its income on housing - above national average

Published on February 24, 2011

A national study released today by the Washington-based Center for Housing Policy shows Rhode Island as one of the most severely cost-burdened housing markets in the country. The report, titled Housing Landscape 2011, provides an in-depth look at housing affordability trends for working households between 2008 and 2009 focusing on the effects of employment, income and housing costs.

In Rhode Island, the report shows that a disproportionate number of working families are spending more than 50 percent of their incomes on housing costs, including mortgage or rent payments, insurance, and utilities. 

Key findings:

• In 2009 there were 162,539 working households in Rhode Island. 41,109 of those working households, or 25 percent, were cost-burdened – 6,632 more than the prior year.
• Rhode Island ranks seventh in the country with the most number of households severely cost-burdened by housing expenses.
• Rhode Island is the most severely cost-burdened housing market in New England, followed by Connecticut with 23 percent of working households considered cost-burdened, Massachusetts with 22 percent, New Hampshire with 20 percent, Vermont with 19 percent, and Maine with 18 percent.

“For a working family to afford basic necessities like food and healthcare, it should not spend more than 30 percent of its income on housing,” said HousingWorks RI executive director Nellie M. Gorbea. “These findings remind us that decreasing home prices have not solved the housing crisis in the Ocean State and affordable housing programs, like Building Homes Rhode Island and the Neighborhood Opportunities Program, are more relevant than ever.”

Nationwide, about 10.5 million or 23 percent of working households experienced a severe housing cost burden in 2009, an increase of nearly 600,000 households from the prior year. This increase occurred despite a drop of 1.1 million in the overall number of working households. California and Florida top the list with 33 percent of households severely cost-burdened. Hawaii, New Jersey, Nevada, and New York precede Rhode Island.

This report’s analyses are based on U.S. Census Bureau’s 2009 American Community Survey sample microdata, which provides household income, hours worked per week, and housing costs for different geographies.

 About the Center for Housing Policy
The Center for Housing Policy, the National Housing Conference’s (NHC) research affiliate, specializes in developing solutions through research. In partnership with NHC and its members, the Center works to broaden understanding of the nation’s housing challenges and to examine the impact of policies and programs developed to address these needs.