A new report from the Rhode Island Public Expenditure Council (RIPEC) has found a rather weak return on investment from a $120 million housing bond approved by voters in 2024.
The Rhode Island Current reports that $52.2 million from the bond had been used by April 2026 to fund 200 newly constructed rental units, with each unit carrying an average development cost of $512,377. The state subsidized roughly 51% of those costs.
Based on spending from the 2024 housing bond and projections tied to a similar proposal this year, RIPEC estimated the housing bond will create only 642 new housing units, slightly more than one-quarter (28.5%) of Executive Office of Housing’s 2030 housing goal.
The report observed, “Subsidized projects are frequently used as vehicles for non-housing policy objectives, including green building certifications, labor requirements, and community benefit agreements,” the report states. “While these mandates serve broader public interests, they significantly inflate the hard costs of construction.”
RIPEC added the state would need to spend nearly $6 billion to fill its housing gap of 23,222 affordable rental units.
“This is an inefficient and unsustainable path that requires a strategic shift to ensure a real return for taxpayers and an increase in housing production,” said RIPEC President and CEO Michael DiBiase. “We should not continue to ask taxpayers to fund a model that fails to benefit the vast majority of Rhode Islanders.”
Emily Marshall, spokesperson for the Executive Office of Housing, disputed the report’s conclusions, pointing out that nearly 3,800 housing permits were issued across each of Rhode Island’s municipalities in 2025.
“While formal tracking toward Housing 2030 begins this year, that level of production reflects strong momentum driven by our investments and policy direction,” Marshall said. “Rhode Island’s housing strategy reflects a coordinated, fiscally responsible approach to increasing supply, preserving affordability, and modernizing housing delivery.”
Photo: Morrow Long / Wikimedia Commons
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