Rhode Island is getting more expensive for renters, new report shows

A little more than one third of Rhode Islanders live in rentals. Of those renters, the average hourly wage is $19.24, according to the report, enough to affordably rent at just $1,001 a month while working one full-time job. To afford a market-rate two-bedroom at the average wage would require a roughly 70-hour workweek, about one more hour than in the 2025 report. Renting a standard one-bedroom would require around 57 hours of work per week.

At the states’ $16 minimum wage, renters could affordably rent at $832 with one job. To rent at market rate would require 2.1 full-time minimum-wage jobs and an 85-hour workweek, which was the same as last year’s report. Renting a market-rate one-bedroom at minimum wage would require 1.7 full-time jobs and 68 hours of work, just one hour less than in 2025.

While Rhode Island’s national ranking in renter affordability was worse than in 2025, the state performed better this year than in the 2024 report. That report ranked it one spot more unaffordable at 12th, despite 2026 requiring about $1,500 more annually to rent a two-bedroom than 2024.

Rhode Island better than NH, worse than Maine

The most-expensive rental markets in Rhode Island have stayed consistent. Aquidneck Island took first again, requiring a salary of $44.50 an hour to rent a two-bedroom affordably in Newport, Middletown and Portsmouth, while the Providence metropolitan area required $33.25.

Throughout New England, every state ranked worse than in 2025. Massachusetts dropped one spot to a third-worst-in-the-nation $48.59 an hour needed to rent a two-bedroom home, amounting to a 130-hour workweek and 3.2 full-time jobs at minimum wage. New Hampshire ranked No. 8 — down from No. 12 last year — while Connecticut was two spots lower than in 2025 at No. 9. Vermont moved down three ranks to No. 18, and Maine was the region’s most affordable at No. 19, despite being ranked 26th last year.

While Rhode Island ranked relatively well in New England, its comparatively affordable costs could attract more higher-wage earners, according to a news release for the report. That increased demand could cause higher prices and a wider divide between wages and housing costs.

“We must do more to bridge this gap and ensure safe, affordable, and secure housing doesn’t remain out of reach for Ocean State residents,” Brenda Clement, executive Director of HousingWorks RI at Roger Williams University, said in a statement.

‘We have the resources’

Rhode Island’s minimum wage will increase to $17 in 2027, the fifth $1 raise in as many years. But NLIHC’s report shows those annual increases haven’t been enough to keep up with rising housing costs in 2026, as minimum-wage workers still need to work the same 85 hours a week to afford a two-bedroom unit as they did last year.

A 2025 report from HousingWorks RI found only seven of the state’s 39 municipalities have met the statewide goal of 10% of houses being affordable in each city or town. That shortage and rising costs have made affordability and housing prominent issues in this year’s election cycle.

Democratic gubernatorial candidate Helena Buonanno Foulkes revealed her housing plan in March. Her “Rhode Home Program” would tax the state’s millionaires and use the revenue to build 20,000 affordable housing units over the next eight years. Gov. Dan McKee, who is running for re-election, announced $9.5 million in June to build and maintain affordable rentals through the Housing 2030 Public Developer Program.

In Providence, Mayor Brett Smiley and the city council have butted heads over rent controls, with the mayor opposing rent stabilization. He accused the council of “political gamesmanship” for blocking a $1 million relief fund for renters experiencing financial hardship. Councilmembers argue the fund doesn’t effectively enforce tenant protections.

But NLIHC’s report suggests housing affordability is best solved federally, not just at a state level.

The report advocates against cuts to the U.S. Department of Housing and Urban Development (HUD) and calls for increased funding for the department, which provides capital for state and local housing projects. Rhode Island is among a coalition of states suing HUD for changing its rules to limit grants for permanent housing projects for homeless individuals.

Insufficient HUD funding and more expensive energy and materials — partially attributed to the Trump administration’s tariffs — have made affordable housing projects unviable for developers, the report reads. It suggests that increasing federal subsidies and support for those projects is paramount to tackling the affordable housing crisis.

“We have the resources to invest in expanding housing solutions that provide stable homes for the lowest-income people in our country. We just need the political will to do so,” Renee M. Willis, NLIHC president and CEO Renee M. Willis, said in a statement.

SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX.