Homeownership out of reach for many N. Smithfield residents

Homeownership out of reach for many N. Smithfield residents

NORTH SMITHFIELD – When it comes to purchasing a home, the annual income needed to afford a median-priced single-family home in North Smithfield outpaces the area’s median income by nearly $10,000, putting homeownership out of reach for many residents, according to a report released last month.

The 2020 HousingWorks RI Fact Book ranked North Smithfield 20th on its list of most affordable Rhode Island communities to buy a house in.

According to the report, the median cost of a single-family home in North Smithfield was $322,500 in 2019, up from $256,189 in 2014. That means someone would need to earn a household income of $90,594 to affordably purchase a median-priced home.

The median household income in North Smithfield is $81,649.

North Smithfield ranked higher up the list in terms of rental affordability, landing 10th on the list of most affordable communities to rent in Rhode Island. The average monthly rent payment for a two-bedroom apartment in North Smithfield was $1,516 in 2019, up from $1,313 in 2014. That means someone would need to earn a household income of $60,640 to affordably rent an average-priced two-bedroom apartment.

According to the report, only one community, Central Falls, would accommodate a potential homeowner who makes the state’s median household income of $63,296. The annual income needed to afford a median-priced home in Central Falls was $49,338 in 2019. In every other community, including Providence, Pawtucket and Woonsocket, which ranked next on the list, the income needed for a median-priced home is above $63,296.

The report also identified the number of residents in each community considered “cost-burdened,” which means they spend more than 30 percent of their income on housing and utilities. In North Smithfield, 1,375 households, including 56 percent of renters and 23 percent of homeowners, are cost-burdened.

About 8.2 percent of the units in North Smithfield are considered affordable, with another 92 units required to hit the state’s goal of 10 percent affordable housing in each community.

By contrast, Woonsocket had the highest percentage of affordable housing units out of any community in Rhode Island, with 15.8 percent of units in Woonsocket considered affordable.

Eighty percent of North Smithfield residents own their own home, according to the report.

The most affordable community to rent in Rhode Island is Burrillville, with an income of $36,240 needed to affordably rent an average-priced two-bedroom apartment. The second- and third-most affordable communities to rent were Smithfield and Woonsocket.

According to the report, housing access remains a challenge across Rhode Island, with overall affordability low compared with median statewide incomes. The COVID-19 crisis, it said, has worsened the issue, devastating some communities and revealing disparities in housing and economic security.

Comments

You forgot to mention in your story..........the SKY HIGH taxes and the OUT of CONTROL SPENDING spree this town has ! I can only imagine what the car tax is going to be ! SPEND ! SPEND ! SPEND ! and TAX ! TAX ! TAX ! That's all the Town does !!!!!