New Hampshire’s economy has demonstrated resiliency as we rebound from the COVID-19 pandemic, boasting the fastest-growing economy among New England states and surpassing the overall growth rate across the United States. This success can be attributed to the people and workforce throughout the state, as evidenced by the unemployment rate sitting at 2%[1], which is below the national average. Our goal is to ensure that the people of New Hampshire have access to quality housing at affordable prices, thereby strengthening our growing population.
In the June 2024 Granite State Poll, conducted by the University of New Hampshire Survey Center, 36% of respondents identified housing as the state’s most pressing issue[2]. Current housing inventory has remained under two months of supply for sale since 2019. This metric indicates that only two months' worth of homes are available for buyers, whereas a healthy housing market typically has six months of inventory. This shortage creates a mismatch between what people need and desire and what is available.
New Hampshire’s rental market continues to present opportunities for owners, developers, investors, and city officials to collaborate on expanding housing options for this growing economy and population. Based on estimated population growth, there is an immediate need for 23,500 units statewide, with nearly 60,000 units required between now and 2030. Vacancy rates across the state remain very low, at 0.8%, creating an opportunity for developers and investors to make an immediate impact in markets that will benefit from their investments.
Over the past five years, rent has increased by 36% throughout the Granite State[3]. Low inventory has intensified competition for renters seeking affordable, quality housing options. High construction costs have constrained developers aiming to provide more housing to address this competition. However, the New Hampshire 2024 Rental Cost Survey indicates that average monthly utility costs have decreased by 12.7%, suggesting that the cost to build and operate properties is lowering.
As we approach the end of 2024, we remain optimistic about our ability to deliver more housing for the people of New Hampshire. We believe there is a significant opportunity for investors to capitalize on the demand for housing while contributing to a rapidly growing economy.
[1] Ruderman, J., McCann, H., Moran, K., & Frost, B. (2024). 2024-2025 Biennial Housing Plan. New Hampshire Housing. September 11, 2024, https://www.nhhfa.org/
[2] McCann, H., Galanis, A., Moran, K., & LaFond, E. (2024). New Hampshire 2024 Residential Rental Cost Survey Report. New Hampshire Housing. September 11, 2024, https://www.nhhfa.org/publications-data/publications-reports/
[3] McCann, H., Galanis, A., Moran, K., & LaFond, E. (2024). New Hampshire 2024 Residential Rental Cost Survey Report. New Hampshire Housing. September 11, 2024, https://www.nhhfa.org/publications-data/publications-reports/
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