News & Trending Real Estate News

Every City in This State Is Now Unaffordable for Average Buyers and Renters

In one state, rising prices and limited supply have pushed every city and town out of reach for the typical household.

By Kristin Hitchcock

Edited by Calista Headrick

Updated Feb. 15, 2026

Add Us On Google

If you live in Rhode Island, you probably don't need a study to tell you that housing has gotten painfully expensive. You feel it when your rent jumps again, when a modest house sells in a weekend, and when you try to run the numbers and realize they barely make sense.

Still, the newest 2025 housing data is sobering: there is no city or town left in Rhode Island that the typical household can comfortably afford. If you're trying to protect your home budget, this is the kind of reality that quietly forces some big, uncomfortable decisions.

Here's what the data says, why it matters, and what it means for real people trying to build a life in the Ocean State.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

What "no affordable cities" actually means in real life

When researchers say Rhode Island has "no affordable cities," they're not being dramatic. They're using a very practical definition: housing is considered affordable if it doesn't take more than about 30% of your income.

In 2025, not a single Rhode Island town met that standard for both buying and renting for the median household. In plain English, that means the typical family is expected to stretch their budget uncomfortably or take on financial risk just to have a stable place to live.

Who really has the cheapest auto insurance in your area? Check your zip code here.

How big is the gap between paychecks and prices?

To afford the median-priced home in Rhode Island without being financially stressed, a household would need an income close to $130,000 per year. The actual median household income in the state is much lower.

Renters aren't much better off. A typical two-bedroom apartment now requires an income well above what the median renter actually earns. In some places, like Block Island, the income needed to buy a home is so high it might as well be a different universe for most working families.

Why has Rhode Island become so unaffordable?

This didn't happen overnight, and it didn't happen for just one reason.

Rhode Island's housing inventory is far smaller than it was just a few years ago. When more people are chasing fewer homes, prices climb. Zoning rules and a slow approval process make it more difficult to build new homes, especially more affordable ones. Even when demand is high, supply can't respond quickly.

Many people are earning more than they did a few years ago, but housing costs have risen much faster. This has caused a slow, grinding squeeze.

What this feels like for real families

On paper, this is called a "housing affordability crisis." In real life, it looks more like families staying in apartments that are too small because moving costs too much, young adults giving up on buying, and people commuting farther and farther.

More households are now officially "cost-burdened," meaning housing eats up so much of their income that everything else gets tighter: saving, traveling, handling emergencies, and planning ahead.

Are people starting to leave?

Some already are. When housing stops feeling merely "expensive" and starts feeling structurally impossible, people begin looking at other states and other cities where the math still works. That doesn't mean Rhode Island is emptying out.

But it does mean it's becoming a much harder place for first-time buyers, middle-income workers, young families, and retirees to stay long-term.

Is there any realistic path to improvement?

There are signs that policymakers understand the problem, but fixing it is slow and complicated.

Most experts agree the state needs more housing, period, especially smaller homes, multifamily buildings, and entry-level options. Some recent laws aim to loosen regulations and allow more types of housing, but the results of these laws will take years to pan out. Even then, affordability likely won't return to what it once was.

Grow Your $$: 11 brilliant ways to build wealth after 40

What should individuals do?

There's no perfect solution, but there are some practical moves the average, potential homebuyer could take.

Be honest about how much housing is really costing you in trade-offs. Consider what your money could buy in a different region or state, even if moving feels emotional.

After all, housing isn't just a lifestyle choice. It's a financial foundation. Where you live shapes how much you can save and how much financial risk you're carrying.

Bottom line

Rhode Island's housing market has crossed a difficult line: there is no longer a single city or town where the typical household can comfortably afford to buy or rent without stretching its budget. When everyday homes require far more income than most people earn, it turns housing from a stepping stone into a long-term financial weight that reshapes where families can live and how they plan their futures.

Nearly half of Rhode Island renters are now considered "cost-burdened," meaning they spend more than 30% of their income on housing. In a market like this, even small choices about where and how you live can become some of the most important smart homeowner moves you'll make for your long-term financial stability.

More from FinanceBuzz: