Rhode Island Households Most Cost-Burdened in New England

Published on December 16, 2010

For the first time, the U.S. Census Bureau has released 5-year American Community Survey (ACS) estimates and the data confirm a persistent housing affordability crisis for Rhode Islanders. HousingWorks RI's analysis of the data indicates that Rhode Island is the most housing cost-burdened state in New England.

According to federal and state standards, a household should spend no more than 30 percentof its income on housing costs, including utilities; otherwise, families may not have enough income for other basic necessities such as food, clothing, transportation, medical care and education. The 2005-2009 ACS data show that 162,442 households in Rhode Island, or 41.7 percent, are housing cost-burdened.

Rhode Island households paying more than 30 percent of income on housing:

• 49.2 percent of renter households
• 42 percent of households with a mortgage
• 23.1 percent of households without a mortgage

Unlike the annual ACS data released in September, the estimates released this week offer data on each of Rhode Island's 39 cities and towns. (See chart below.)

When comparing municipalities, Central Falls ranks the highest for cost-burdened households with a mortgage. 74.1 percent of mortgaged households in Central Falls are paying more than 30 percent of their income on housing related expenses. New Shoreham ranks second with 57.6 percentof mortgaged households considered cost-burdened. Providence ranks third with 52.3 percent.

Rental costs in Rhode Island's smaller communities are impacting local residents as well. Exeter ranks highest with 62.9 percent of that town's rental households paying more than 30 percent of their income on housing related expenses. Narragansett ranks second with 59.6 percent of rental households considered cost-burdened. North Smithfield ranks third with 58.5 percent.