PROVIDENCE, R.I. (WPRI) — As housing affordability becomes one of Rhode Island's most crucial demands, the Rhode Island Public Expenditure Council (RIPEC) released a 54-page report analyzing the effectiveness of the state’s recent investments in affordable housing and outlining strategies to address the crisis. In recent years, Rhode Island has experienced a sharp increase in housing prices, with nearly one-third of households statewide classified as "cost-burdened," spending more than 30% of their income on rent, mortgage, and utilities, according to RIPEC. The report attributes the housing crisis to decades of low production and limited state investment, leading to a shortage of available housing and rising costs. Key findings In 2022, the General Assembly made an investment of $332.3 million in federal State Fiscal Recovery Funds (SFRF) for housing, primarily aimed at affordable housing development. RIPEC found that the state heavily prioritized units for very low-income and low-income households, with more than 70% reserved for those earning at or below 60% of the area median income. "Housing affordability is one of the most pressing public policy challenges facing Rhode Island and tackling it will continue to require the full attention of policymakers," RIPEC President and CEO Michael DiBiase said in a press release. TARGET 12: In RI, worsening shortage of homes sends prices soaring However, the report revealed that mixed-income developments were not prioritized. Most projects were either entirely affordable or entirely middle-income; of those that were mixed-income, more than two-thirds offered less than 25% of units for middle-income or market-rate households. Additionally, project costs were high, with more than half exceeding $400,000 per unit, and three projects surpassing $500,000. A summary analysis of the total investment in SFRF development showed the state allocated $273.3 million to 43 developments, affecting 2,369 units. "While we did produce a lot of units, we should do better in terms of our return on investment," DiBiase told 12 News. ‘We need more production’: 1,000+ housing units planned for Warwick in coming years Recommendations Based on its findings, RIPEC recommends the state expand investments to include more middle-income and market-rate housing. The report emphasizes that Rhode Island requires greater investment in housing through a dedicated revenue source and should explore mechanisms to improve the returns on housing funds. "State policymakers have made historic investments of federal dollars, expanded state programs, and advanced state policy," DiBiase added. "However, our findings suggest that to eliminate the wide gap in affordable housing in the Ocean State, we need both significant additional state resources and substantial improvement on the state’s return on investment." READ ALSO: Providence woman works 350 hours to build first home RIPEC also argues for the state to simplify its housing programs and develop initiatives to address the housing shortage. In November, Rhode Islanders will have the opportunity to approve a $120 million bond for housing through Question 3 on the general election ballot, with $100 million earmarked for the construction and preservation of affordable housing. RIPEC projects that these funds could facilitate the creation of nearly 600 new affordable and middle-income housing units. "If this bond does pass, we would hope that we would explore some other approaches," DiBiase said. "For example, rental assistance, direct subsidies, property acquisition and or some, some of the new things that are being done in other places around the country." Read RIPEC's full report here. RIPEC: Housing Policy in Rhode Island Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Daily Roundup SIGN UP NOW