R.I. among most expensive states to live, but cheaper than most of New England

IN ORDER TO AFFORD a two-bedroom apartment that does not burden a household, the minimum per-hour wage must be $19.06 per hour. Yet Rhode Island's is $9.60. / COURTESY NATIONAL LOW INCOME HOUSING COALITION
IN ORDER TO AFFORD a two-bedroom apartment that does not burden a household, the minimum per-hour wage must be $19.06 per hour. Yet Rhode Island's is $9.60. / COURTESY NATIONAL LOW INCOME HOUSING COALITION

PAWTUCKET – Rhode Island rentals have become unaffordable to many working residents, a national report released on Wednesday concluded, with the Ocean State characterized as among the top 20 most-expensive states in the United States.

The report, issued by the National Low Income Housing Coalition, a Washington-based advocacy group, found the fair market rental rate for a Rhode Island two-bedroom unit was $991, an increase from $961 last year.

To afford that unit without being overly burdened, a household would have to earn $3,303 a month, or $39,639 annually. The affordability formula assumes a household pays no more than 30 percent of income on housing, including rent and utilities.

To earn $39,639, a worker employed 40 hours a week for 52 weeks would have to make at least $19.06 an hour. In Rhode Island, the minimum wage, newly increased, is $9.60 an hour.

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The Ocean State has a large proportion of renter households, according to the “Out of Reach” report, about 40 percent of the state’s population.

In other findings, the report found that all of the New England states were among the most unaffordable in the U.S. Rhode Island was ranked at 19th position, slightly more affordable than Massachusetts, (7th); Connecticut, (8th); Vermont, (13th) and New Hampshire (15th). Maine was ranked 25th for affordability.

Hawaii had the highest rental costs in the country, according to the report, while Puerto Rico had the lowest.

In response to the report, housing advocates said the state should invest more in creating new housing.

“Today’s report shows what we already know: We need to invest in and build more housing in Rhode Island,” said Barbara Fields, executive director of Rhode Island Housing.

Jim Ryczek, executive director of the Rhode Island Coalition for the Homeless, said the report verifies that the income gap is real. “The Out of Reach report reminds us why the state programs that support affordable housing and homeless prevention are so critical,” Ryczek said. “Now, more than ever, we need our elected officials to act boldly to assist Rhode Island residents in closing that gap by raising the minimum wage and developing more affordable housing in our state.”

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