How Rhode Island Boosted Housing Production by 150% in Response to Crisis Shortage

Rhode Island is touting a 150% increase in housing production over the past five years, citing “reforms and significant state investment" as key drivers of the effort to address the state's dire housing shortage.

State agencies issued 3,778 permits for home construction in 2025, the highest number of units approved in one year since the late 1980s. That's up 40% from 2024 and 150% from 2021, according to a report from the state's Executive Office of Housing.

Gov. Dan McKee cited "consistent, meaningful progress year after year" to produce more housing. The Democrat previously told Realtor.com® that he wanted to speed up building and permitting reforms. He also says he wants to “seek solutions that will allow a more accurate account of permits issued across the state to better track building progress.

"We're seeing the results of our efforts with the General Assembly to work with cities and towns, remove barriers to development, and make historic investments in housing,” he said.

The state of 1.1 million people has established a goal of permitting an additional 15,000 new housing units by 2030.

51st of 51

The Realtor.com State-by-State Housing Report Card gave the smallest state an F in 2025. Rhode Island was ranked last among all states and the District of Columbia for homebulding and affordability. Realtor.com data showed the state had a median listing price of $537,521 and a median household income of $80,791.

A University of Rhode Island poll found 93% in the state think housing costs are a problem. While that poll found repair and revitalization of existing housing popular, residents were divided on new housing. Almost 4 in 5 Rhode Islanders support state-level efforts to increase housing.

But the survey found that while 42% support more single-family, market-rate homes in their own neighborhoods, only 21% supported public housing and 17% supported homeless shelters.

“Across the board, we see comfort with public solutions, particularly when it comes to the state directly increasing housing stock," Ashlea Rundlett, University of Rhode Island associate professor, said of the findings. "However, they’re less supportive of changing zoning rules to allow for more housing to be built."

The state's housing stock now stands at about 486,000 units, with an occupancy rate of 90.87%, according to the five-year estimates from the U.S. Census Bureau in 2024's American Community Survey. Among those are 292,000 single-family homes, 107,000 multiplexes, and about 94,000 multifamily units.

Rhode Island's housing stock is among the oldest in the country, with the median housing unit over 60 years old. The state launched a $6 million fund to help residents repair their homes, as a quarter have elevated levels of radon and carry a higher risk of carbon monoxide exposure.

And what homes there are don't move fast. Rhode Island Realtors data shows just 911 home listings in the entire state in February. And just 349 have sold.

Ocean State strategy

The state's new goal takes into account projected new household formation—between 9,300 and 13,000 new households created in the state in the next four years—and expected loss of housing units.

Rhode Island cited aggressive use of state bond funding to invest in housing production and support. In 20 years, voters have passed five bond funds raising $310 million. The most recent of which was a $120 million fund in 2024. And McKee proposed another $120 million bond fund in his 2027 proposed budget.

The state also used $219 million in federal appropriations under the American Rescue Plan to preserve housing units. And a new $30 million Low Income Housing Tax Credit, matching one at the federal level, is funded through 2028.

A Housing Incentives for Municipalities Program, administered out of the state's RIHousing Agency, made $5 million available to help cities promote housing production.

So the upward trend in new housing permits is a "coordinated, long-term strategy," said Secretary of Housing Deborah Goddard.

But the state's efforts aren't without criticism. House Republicans, including Minority Leader Mike Chippendale, have called out inefficiencies in RIHousing. They argued the agency needs more belt-tightening to more effectively accomplish its mission.