PROVIDENCE, R.I. (WPRI) — Most Rhode Islanders are paying more than they can afford when it comes to rent, according to a new report released by Realtor.com.
The August report ranks Providence-Warwick 9th out of the nation’s top 50 metro areas when it comes to residents’ rental burdens.
The U.S. Department of Housing and Urban Development recommends households spend no more than 30% of their income on housing, including utilities.
Rhode Islanders living in the Providence metro area are putting nearly 32% of their income toward paying rent.
The report states that the maximum amount a Rhode Island resident should be spending monthly on rent is $1,916. The median rent for an apartment in the Providence metro area, according to the report, is $2,035.
Affordability appears to have worsened primarily in coastal communities, according to the report, with the nine most expensive metro areas being situated oceanside.
Boston-Cambridge-Newton ranks 5th when it comes to residents’ rental burdens, with the median monthly price being $3,040, according to the report. The median monthly price is 5% more than what’s suggested for residents to be spending on housing.
Miami-Fort Lauderdale sits atop the list, with residents paying nearly 47% of their income on rent.
One silver lining for renters is that August was the first month in more than a year that rent growth slowed to a single-digit rate, with the reported increase being only 9.8%.
“It is the first time we have seen rents decline since last November, perhaps a sign that more typical seasonal cooling is returning to the rental market,” the report states.
On top of that, the median overall asking rent in the 50 largest metros declined to $1,771, as compared to last month’s peak of $1,879.
Despite this, the report states that affordability challenges persist in part because inflation continue to outpace wage growth.
The most affordable metro area is Oklahoma City, where the median rent is $973. That price is 42% lower than its estimated monthly maximum.