Has housing affordability been affected by the high volume of foreclosures in Rhode Island?
CLEMENT: Yes. Rhode Island already had a housing affordability problem, particularly for low-moderate income workers, prior to our real estate boom. Between 2002 and 2007, housing prices grew at a rate six times faster than the average income in the state. For minimum wage workers and lower-income individuals, the gap was even wider. While housing prices have steadily declined since 2007, housing is still unaffordable to many Rhode Islanders. Homes lost to foreclosure (2,777 in 2008 alone) now sit vacant. More than half of the foreclosures in our state have been in multi-family buildings, resulting in the displacement of both the homeowner and tenants. Continued displacement of tenants and increasing rates in unemployment will keep demand for affordable housing, particularly rental units, high. PBN: Will it get worse or better from here? CLEMENT: As our state’s economy continues to struggle, we expect foreclosures to rise. A recent study by the Pew Charitable Trust estimates that one i
