Studies of communities across the United States show that by amending zoning codes and eliminating barriers to build housing, rental costs and rates of homelessness decrease. Pew Charitable Trust (Courtesy photo)
Rob Dapice was delighted to learn that housing was on the minds of most lawmakers in the State House last session. The results, though, not so much.
Last session, the legislature formed the first-ever special committee on housing and filed dozens of bills that looked to amend zoning ordinances, repeal regulatory hurdles and provide protections for tenants.
At the end of the session, though, only a handful prevailed.
“We had a very encouraging level of activity with respect to housing,” he said. “The results of the legislative session were rather disappointing.”
Most New Hampshire voters agree – housing is top of mind. In polling prior to the election, housing was identified as the number one issue for Granite Staters. Other studies show that 75 percent of people believe their communities needs more affordable housing.
Translating this sentiment into results, though, is where the challenge lies. Across the country, concerted efforts to build more housing can serve as a road map for New Hampshire, which would deliver direct effects on availability, costs and homelessness, according to studies from the Pew Research Center.
Lessons learned
Tysons, Virginia has little in common with Concord, New Hampshire.
The town outside of Washington D.C, 500 miles away from the Granite State’s capital city, has nearly half the population and double the median income. Median home prices are over $600,000 and rent is nearly double, as well.
While rent has continued to skyrocket in New Hampshire – increasing over 30 percent in the last several years, which is on par with national trends – the same can’t be said for the Virginia community.
From 2017 to 2023, Tysons’ has seen an increase of one percent for rental prices. While communities in the United States increased their housing stock by 3 percent during this time, Tyson saw a 23 percent growth in homes.
As a result, rental costs remained virtually unchanged.
“Increasing housing supply will help lower housing costs,” said Lilin Liang, a principal associate at the Pew Research Center who studies housing policy nationwide.
Minneapolis, Minnesota tells a similar story.
Minneapolis has built more housing in the last five years than other major Midwest cities, like Ohama, Indianapolis and Cincinnati. And while rent has increased rapidly in communities where there’s been little housing growth, Minneapolis has bucked the trend.
“The city is building housing at triple the rate of the rest of Minnesota and the US,” she said.
“Residents will have a chance to catch up with slower rent growth. That’s how you improve your housing affordability.”
Research from Minnesota also shows that the increase in housing also led to a decrease in homelessness in the city.
Necessary adjustments
New Hampshire has its own estimates – by 2030, 60,000 new housing units are needed. By 2040, the state will need up to 90,000 units.
These daunting figures aren’t an anomaly, though. The supply of homes in the United States is near an all time low, with the nation at a cumulative shortfall of 4 to 7 million homes.
Building houses on large parcels isn’t the best way to increase housing growth and lower costs, though. Adjusting minimum lot sizes is one change that drives down purchase prices, experts say.
“It’s a key factor that forces buyers to purchase extra land they don’t really need, therefore driving housing costs,” said Liang.
In Houston, Texas, when minimum lot sizes were adjusted from 5,000 square feet to 1,400, an influx of 80,000 townhomes were built on these smaller plots.
In Concord, the single-family residential district has a minimum lot size of 12,500 square feet with sewer. Downtown residential requirements are lowered to 7,500 square feet.
While lot sizes are dependent on town zoning ordinances, state legislatures can help alleviate housing shortages with other policy changes.
Accessory dwelling units – which was a main focus of the special committee on housing last session – and legalizing multifamily homes to be built in commercial areas will also increase stock.
Dapice noted that the next legislative session will coincide with a state budget year, where funding will be critical alongside policy changes.
“This is a supply problem and the market can’t do it all itself,” he said.
“So we desperately need more money for the affordable housing fund so we can build more housing for Granite Staters.”
These articles are being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.
