GoLocal Prov: Providence Ranked One of the Most Expensive Places to Rent, Adverse Effect on Long-Term Wealth
Tuesday, July 30, 2019
GoLocalProv Business Team
The implications of growing the American “renter economy” are playing out in Providence.
A new study ranks Providence poorly for rental affordability -- and the implications are significant for Rhode Islanders trying to build wealth.
“One reason this is such an important decision financially is that rental prices have soared over the years, jumping 2.7% in the past year alone. And with demand for affordable housing exceeding supply, more than one-quarter of all renters - 11 million people in total - spend more than 50 percent of their income on housing. They are classified as 'severely cost-burdened' by federal housing agencies as a result," according to WalletHub.
Providence's Apartment Complex
Rhode Island's policy has been to invest heavily in apartments -- higher-priced apartments like the recently opened River House which received more than $10 million in Rebuild incentives, tax breaks from the state and a tax stabilization agreement from the City of Providence. River House is just one of a number of high profile apartment projects to receive millions in incentives and carry rents at $1,500 to $3,000 a month.
Courtesy of GoLocal Prov