Special Legislative Commission to Study Housing Affordability: 2-12-2026 [Source] Translate

The meeting began with a roll call confirming the presence of members, including Aiden Brown, Bob Marshall, Emily Friedman, and Jeffrey Hamel. The first presentation was by New Bridges for Haitian Success, represented by founder Bernard George and project director William Bentley. Bernard discussed the organization's mission to assist Haitian immigrants with challenges such as language barriers, cultural adjustment, and trauma, providing services like basic needs assistance, advocacy, and a comprehensive adult education program focused on literacy and workforce development. William Bentley highlighted the issue of overcrowded housing faced by many single adults in their programs, emphasizing their focus on working adults who are underemployed rather than the unhoused population. They aim to create a transitional housing program that integrates various services but currently lack funding to purchase a building. They are examining successful models from other states to develop a mixed-use facility that includes transitional housing. Commission members asked about coordination with other organizations and the challenges faced by the Haitian community, particularly regarding language acquisition. Bentley clarified their focus on helping individuals build skills and achieve self-sufficiency. The meeting then transitioned to a presentation by the Rhode Island Association of Realtors, led by Mike Pereira and Trevor Chase. They provided an overview of the real estate market, discussing changes since COVID-19 and the current state of the market. The Rhode Island Association of Realtors has approximately 6,000 members and manages a subsidiary, Statewide MLS. Mike highlighted a 7.7% increase in sales from 2024 to 2025 and the economic impact of real estate transactions in Rhode Island, estimating an average economic contribution of $148,300 per sale. The real estate sector contributed 18.8% to the state's gross product in 2024. Mike recapped the housing market, noting year-over-year sales increases for single-family homes (1.3%) and condominiums (5.8%), while multifamily sales decreased by 0.5%. The median sales price rose by 5.3% to just under $500,000, with condominiums increasing by 9.9% and multifamilies by 8.2%. He explained the concept of "month's supply," indicating that Rhode Island has only 1.7 months of inventory, contributing to rising prices due to high competition. Sales activity showed a 38% drop in sales for homes priced below $500,000, while sales for properties over $1 million rose by 18%. A significant increase in out-of-state buyers was noted, with 23% of homebuyers in Rhode Island coming from outside the state. The discussion covered the rise in cash purchases, which increased from 16.8% in 2019 to 24.7% in 2025, and institutional buyers accounted for 23% of residential sales. Interest rates were identified as a major factor affecting the market, with a significant "lock-in effect" preventing current homeowners with low rates from selling. The percentage of first-time homebuyers reached an all-time low at 21%, with the median age of first-time buyers now at 40. Challenges faced by potential buyers, particularly first-time buyers, were discussed, emphasizing the competitive nature of the market. Key points included a decline in buyers with children under 18, challenges for homebuyers due to inadequate household income, low housing starts, and increased competition. Sellers are hesitant to give up low interest rates, leading to a "lock-in effect," and face challenges such as a shortage of affordable replacement properties. The capital gains tax was highlighted as a significant concern, with discussions around its proposed revision to align with inflation since its last update in 1997. The recent increase in the conveyance tax raised costs for sellers, causing a rush to sell before the increase took effect. Proposed additional conveyance taxes by municipalities could further increase costs for sellers. The impact of short-term rental taxes and new regulations, such as lead laws and electrical inspections, were discussed, with concerns that these could hinder housing affordability and development. The conversation touched on the implications of rent control and its potential adverse effects on housing supply, emphasizing the need for balance in legislation. The new Accessory Dwelling Unit (ADU) law was noted as a positive step towards increasing housing options, with hopes for further encouragement of ADU creation. The meeting underscored the complexities of the housing market in Rhode Island, highlighting the interplay between taxes, regulations, and market dynamics. The discussion centered around addressing the housing crisis, particularly through the promotion of ADUs to provide more housing options, especially for senior citizens. Participants noted the confusion surrounding the implementation of laws related to ADUs and acknowledged pending legislation aimed at clarifying these issues. There was a consensus that streamlining the process for ADUs could help alleviate housing shortages. Concerns were raised about institutional investors purchasing single-family homes, reducing the available housing stock for potential homeowners. The impact of rent control in Providence was discussed, with participants expressing concerns about its long-term effects on the housing market. The need for more affordable housing units was emphasized, with suggestions to repurpose vacant properties and increase the construction of new units. The conversation also touched on addressing racial and ethnic disparities in homeownership and the need for data to inform policy decisions. Participants acknowledged the complexity of the housing issue, noting that while increasing supply is essential, it may not provide immediate relief for those struggling with high rents. Short-term solutions, such as rental assistance programs, were suggested as necessary to bridge the gap until more housing becomes available. The meeting highlighted the multifaceted nature of the housing crisis and the need for a comprehensive approach to address it effectively. The meeting focused on addressing short-term rental assistance needs in Rhode Island, emphasizing supply and demand issues and potential zoning changes. A participant suggested that immediate rental assistance could help alleviate the current crisis. Dave Caldwell inquired whether the National Association of Realtors (NAR) could provide data on effective rental assistance methods for Rhode Island, and it was agreed that questions could be submitted to NAR for a formal response. The group acknowledged NAR as a valuable resource for the legislature. The meeting concluded with appreciation for the efforts of the Speaker and the Chairman regarding a beneficial housing package. The next meeting is scheduled for the second Tuesday in March, with a joint hearing planned for April with the Climate Change Commission to discuss housing and resiliency in relation to sustainability. The meeting was adjourned with thanks to all participants.