NEW: 2014 HousingWorks RI Fact Book Shows Housing Costs, Foreclosures Up
GoLocalProv News Team
NEW: 2014 HousingWorks RI Fact Book Shows Housing Costs, Foreclosures Up
“Rhode Island’s housing market has changed dramatically during the last decade. From the surging home prices in 2003 to when the bubble burst in 2007 to the lingering effects of the foreclosure crisis today, we wanted to see what this has meant for housing affordability for Rhode Islanders at different income levels,” said Nicole Lagace, Director of HWRI. “Documented throughout our analysis are persistent housing cost burdens for homeowners and renters alike, despite marked highs and lows in home and rent prices over the last decade.”
The release marks the 10th annual Housing Fact Book released by HousingWorks, which is now a program in the Division of University Outreach and Engagement at Roger Williams University. The analysis looks back at trends in housing affordability in the state since 2000.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTMethodology
HWRI divided Rhode Island homeowner households into five equally sized income groups, and isolated the changes in household income and spending on housing costs for the lowest income, middle income and highest income homeowners.
“We found that spending on housing outpaced incomes for homeowners at all income levels from 2000 to 2012,” said Jessica Cigna, Research and Policy Director for HWRI. “But more troubling was that Rhode Island’s lowest and middle income homeowners saw a decline in their incomes. It’s no surprise then to see that since 2000 the percent of cost burdened households has grown by 14 percent for the lowest income homeowners, and by 53 percent for middle income homeowners.”
In addition, HWRI measured the decreased purchasing power of cost burdened homeowner and renter households from the three lowest income groups in Rhode Island, and found that high housing cost burdens decrease the purchasing power of over 130,000 RI households by $927 million annually.
“Imagine if that money was diversified through the state’s economy rather than being tied up in high housing costs. What would that mean for local businesses,” said Lagace. “Certainly, the decreased purchasing power that results from housing cost burdens must be considered as we discuss ways to strengthen the middle class and grow the state’s economy.”
Foreclosures
The Fact Book showed Q2 foreclosures up 5 percent in the first half of 2014 compared to the prior year. For just at the second quarter, foreclosure deed filings declined from 412 in 2013 to 377 in 2014.
Twenty-one communities had an increase in foreclosure deed filings in the first half of 2014 when compared to 2013. Thirteen communities and the East Side of Providence reported decreases, and 5 Five communities saw no change at all.
The Most Affordable Communities for Renters
Barrington
Rank: 1
Median Resident Income: $98,612
Average Two Bedroom Rent: $1,154
Percent of Income Spent on Rent: 14%
East Greenwich
Rank: 2
Median Resident Income: $96,591
Average Two Bedroom Rent: $1,335
Percent of Income Spent on Rent: 17%
North Smithfield
Rank: 3
Median Resident Income: $79,005
Average Two Bedroom Rent: $1,151
Percent of Income Spent on Rent: 17%
Cumberland
Rank: 4
Median Resident Income: $72,689
Average Two Bedroom Rent: $1,107
Percent of Income Spent on Rent: 18%
Lincoln
Rank: 5
Median Resident Income: $74,136
Average Two Bedroom Rent: $1,133
Percent of Income Spent on Rent: 18%
North Kingstown
Rank: 6
Median Resident Income: $78,369
Average Two Bedroom Rent: $1,271
Percent of Income Spent on Rent: 19%
Burrillville
Rank: 7
Median Resident Income: $68,898
Average Two Bedroom Rent: $1,138
Percent of Income Spent on Rent: 20%
Coventry
Rank: 8
Median Resident Income: $67,016
Average Two Bedroom Rent: $1,128
Percent of Income Spent on Rent: 20%
South Kingstown
Rank: 9
Median Resident Income: $74,147
Average Two Bedroom Rent: $1,274
Percent of Income Spent on Rent: 21%
Bristol
Rank: 10
Median Resident Income: $64,405
Average Two Bedroom Rent: $1,135
Percent of Income Spent on Rent: 21%
Portsmouth
Rank: 11
Median Resident Income: $76,500
Average Two Bedroom Rent: $1,391
Percent of Income Spent on Rent: 22%
Charlestown
Rank: 12
Median Resident Income: $69,271
Average Two Bedroom Rent: $1,271
Percent of Income Spent on Rent: 22%
Middletown
Rank: 13
Median Resident Income: $71,901
Average Two Bedroom Rent: $1,322
Percent of Income Spent on Rent: 22%
Westerly
Rank: 14
Median Resident Income: $60,432
Average Two Bedroom Rent: $1,123
Percent of Income Spent on Rent: 22%
Tiverton
Rank: 15
Median Resident Income: $63,767
Average Two Bedroom Rent: $1,216
Percent of Income Spent on Rent: 23%
Narragansett
Rank: 16
Median Resident Income: $64,031
Average Two Bedroom Rent: $1,235
Percent of Income Spent on Rent: 23%
Cranston
Rank: 17
Median Resident Income: $58,442
Average Two Bedroom Rent: $1,157
Percent of Income Spent on Rent: 24%
Warren
Rank: 18
Median Resident Income: $53,284
Average Two Bedroom Rent: $1,057
Percent of Income Spent on Rent: 24%
West Warwick
Rank: 19
Median Resident Income: $50,006
Average Two Bedroom Rent: $1,096
Percent of Income Spent on Rent: 26%
Warwick
Rank: 20
Median Resident Income: $59,973
Average Two Bedroom Rent: $1,315
Percent of Income Spent on Rent: 26%
Johnston
Rank: 21
Median Resident Income: $54,880
Average Two Bedroom Rent: $1,213
Percent of Income Spent on Rent: 27%
North Providence
Rank: 22
Median Resident Income: $50,211
Average Two Bedroom Rent: $1,114
Percent of Income Spent on Rent: 27%
Newport
Rank: 23
Median Resident Income: $58,080
Average Two Bedroom Rent: $1,371
Percent of Income Spent on Rent: 28%
East Providence
Rank: 24
Median Resident Income: $49,408
Average Two Bedroom Rent: $1,197
Percent of Income Spent on Rent: 29%
Pawtucket
Rank: 25
Median Resident Income: $39,628
Average Two Bedroom Rent: $1,026
Percent of Income Spent on Rent: 31%
Woonsocket
Rank: 26
Median Resident Income: $39,329
Average Two Bedroom Rent: $1,021
Percent of Income Spent on Rent: 31%
Central Falls
Rank: 27
Median Resident Income: $32,759
Average Two Bedroom Rent: $863
Percent of Income Spent on Rent: 32%
Providence
Rank: 28
Median Resident Income: $38,922
Average Two Bedroom Rent: $1,126
Percent of Income Spent on Rent: 35%
Statewide Average
Median Resident Income: $55,975
Average Two Bedroom Rent: $1,176
Percent of Income Spent on Rent: 25%
