Rhode Island, like other states across the country, is facing a housing affordability crisis
State lawmakers are now on their sixth bill to strengthen efforts to improve housing affordability. In this case, the package includes renovating residential and co-housing.
Like California, Florida, and Texas, the nation’s smallest state has faced a housing shortage as new homes are built.
To shorten construction times, those states passed laws that replaced local governments, cut red tape, and changed zoning to make it easier for builders to develop low-income homes.
Rhode Island House Speaker Joseph Shekarchi shepherded the past five packages as the state sought to address housing affordability challenges.
“Our advocacy is working,” Shekarchi said at a news conference last week in Providence. “Rhode Island is becoming a model for housing policy in other states. We have passed more than 60 new laws with real results.”
He cited a 70% increase in building permits by 2023, the largest number since the Great Recession. He also noted that construction takes time.
“We’re still trying to play games every year where Rhode Island has finally died in the country of new housing starts,” he added.
Rhode Island’s housing crisis
Rhode Island’s relentless underconstruction created a severe housing shortage and pushed vacancy rates and inventory to historic lows. Prices and rents have risen as more people compete for fewer homes. Families are now facing intense competition for all honor listings.
The median single-family home price is around $500,000, more than most local income can support. Many long-term residents cannot compete with high-income or cash-strapped buyers. Home ownership feels out of reach for ordinary Rhode Islanders.
Renters face similar pressures, as the average two-bedroom apartment requires an income of around $60,000. The average renter’s income hovers around $48,000. Many households pay more than 30% of their income just to stay at home.
Accelerating home buying options
State Rep. June Speakman, chairwoman of the House Housing Committee, introduced legislation late Friday to reauthorize single-room occupancy and condominiums.
The law is linked to a template the Institute for Justice began lobbying countries to introduce in December. Speakman’s bill marks the first of the nonprofit law firm’s “Restoring Choices in Work Models Act.”
“We’re going to make better use of vacant lots and buildings,” Speakman said
His law, titled the ROOM Act, defines shared accommodation, dormitories and shared accommodation agreements. It would require municipalities to allow co-occupancy in single-family, multi-family, commercial and mixed-use areas where residential uses are permitted.
The bill would prevent discretionary review and limit zoning laws that regulate density figures, mass standards and designs, parking — especially near transit — and occupancy restrictions based on personal characteristics.
The law can prevent conflicting zoning and certain code requirements while maintaining landlord and tenant protections. Set Jan. 1, 2027, the local compliance deadline and allows lawsuits, with the city paying attorneys’ fees if it loses.
A comprehensive list of mortgages that deal with housing affordability
Rhode Island lawmakers have a comprehensive bill aimed at opening up more housing in existing communities. They talked about how lots could be subdivided, how much parking cities would need, how small apartments could be designed, and how governments could repurpose vacant land and buildings.
One bill would allow property owners in water and sewer areas to build new housing zones under the proposed ordinance, opening up more lots for single-family homes. Another would include the amount of parking cities would need for multi-family projects near transit, supporting more homes than more asphalt.
A separate proposal would amend the building code to allow developers to use a single staircase in residential buildings up to four stories and 16 units, while meeting all fire safety standards. Lawmakers are pushing ahead with a move to allow vacant government buildings to become affordable housing, making it easier for cities and towns to convert vacant municipal buildings, including schools, into new housing.
The law mirrors what other states are doing with regard to parking requirements near transit. Illinois, for example, took a similar step last year, joining states like California and Colorado.
The flexible rules for single-storey construction of small apartment buildings are in line with a growing national trend.
Can this method be successful?
The federal debate on how to tackle housing affordability comes as councilors in the capital are considering a 4% annual rent increase. Rhode Island’s package would give the state more tools to free up zoning, reduce procedural delays, and revitalize low-cost housing types, such as SROs and co-housing. Judges do not know how well the laws of other states work.
In most cases, local governments have their own procedures for complying with new state housing laws. They also resisted changes that limited local control. Rhode Island is not immune to jurisdictional objections, although, for now, it appears to be easier than many other states.
