On Wednesday, The Washington Examiner posted an article about a program in Rhode Island to provide affordable housing.
The article reports:
Rhode Island has spent an eye-popping $52.2 million to produce 200 rental units since voters approved a $120 million housing bond in November 2024, a local nonprofit research organization has revealed.
The Rhode Island Public Expenditure Council’s 35-page report reveals the imprudence commonly found in government-financed housing initiatives. The Ocean State subsidized half of each rental unit’s development costs, which RIPEC found were almost 50% higher than in the private sector.
If they were subsidizing half of the development costs, that means that each rental unit cost about $520,000. I just looked up the current value of a house that I once owned in Rhode Island. The house is a three-bedroom ranch with one bathroom. It’s current value is approximately $400,000. These rental units cost more than a house!
The article notes:
“If you think about your normal private market, real estate transaction, there are two sources of capital,” says RIPEC Senior Analyst Dr. Jeff Hamill. “When you buy a house, you make a down payment and take out a mortgage — that’s all there is.”
“But when it comes to financing affordable housing, I have seen projects with up to twenty sources of financing,” Hamill continued. “The average probably has six or seven. Each of these sources might have different rules and requirements.”
The Terner Center for Housing Innovation at the University of California, Berkeley, found that each additional funding source extended a project’s timeline by four months and increased costs by $20,500 per unit.
Worse, government-financed housing projects often require developers to integrate hilltop planners’ irrelevant policy priorities. Labor requirements, climate policy, and community benefits agreements bloat building costs.
The article concludes:
“Chicago’s Affordable Requirements Ordinance, community engagement meetings, and aldermanic prerogative are commonly used to kill or downsize new developments at a time when residents desperately need more housing stock,” he told The Washington Examiner.
Rhode Island does not need another expensive housing bond that enriches bureaucrats, consultants, and favored developers while producing too few homes. It needs a simpler, faster, cheaper housing policy that removes barriers to construction. If lawmakers want more affordable housing, the answer is obvious: Let builders build.
Removing unnecessary regulations would save money for all Americans.

