Rental costs are at an all-time high and are likely to continue rising according to RIHousing’s recently released annual Rent Survey.
The study found that average rent prices in Rhode Island increased from
2015 levels for studio, one-bedroom, two-bedroom, and three-bedroom apartments.
These rents are the highest reported since RIHousing began conducting its Rent
Survey in 2002.
Apartment
Type
|
Average Rent Price (2015)
|
Percentage Increase/Decrease
|
Studio
|
$855
|
+11.1%
|
One-bedroom
|
$986
|
+1.0%
|
Two-bedroom
|
$1,288
|
+4.1%
|
Three-bedroom
|
$1,628
|
+2.1%
|
“Rhode Island is facing a serious housing shortage at almost every
income level,” said Barbara Fields, RIHousing’s Executive Director. “There is
simply not enough housing stock to meet demand, which means that working
families will continue to be burdened by increasing rents.”
While rent prices continue to rise, the median household income for
renter-occupied households is stagnant. Due to the disparity between income and
housing costs, 51% of Rhode Island renters now pay more than 30% of income for
rent (meaning they are housing cost burdened). A household earning $42,000
annually would need to spend no more than $773 per month on housing in order to
avoid being considered cost burdened. According to RIHousing’s Rent Survey
database, just 12% of rental options listed in 2016 were affordable for renters
at or below the median household income for the typical renter.
“This study reinforces what we at RIHousing already know: Rhode Island
needs to continue investing in housing,” said Fields. “The passage of the $50
million Housing Bond is a great start in addressing our state’s housing
shortage, but we must continue to do more.”
