A national report that assesses home affordability by income levels shows New Hampshire housing is unaffordable for large segments of its residents.
According to a New Hampshire Association of Realtors (NHAR) assessment of the new data from the National Association of Realtors (NAR), local households earning $100,000 a year can only afford 18.8% of current home listings in the Granite State.
That percentage is down from last year when it was 20.2%. In a normal market, 51% of home listings would be affordable to families making $100,000, according to the association’s assessment.
The percentages get even worse for lower-income households.
A household with an income of $50,000 can afford only 3.4% of the homes currently available on the market.
The median household income in New Hampshire is about $97,000.
A September 2024 analysis of income groups by the New Hampshire Fiscal Policy Institute shows an annual income range of $100,000 to $149,999 represents the greatest percentage at 20%. Next, at 17% of the total, are those making less than $35,000. Those making more than $200,000 make up 16%, followed by $50,000-$74,999 at 14%, $75,000-$99,999 at 13%, $150,000-$199,000 at 12%, $35,000-$49,999 at 8%.
A $35,000 income household can afford 2% of current listings.
“This report provides more evidence of what families in New Hampshire are experiencing firsthand every day, that the gap between income and home prices is crushing the dream of homeownership for too many,” said Bob Quinn, chief executive officer of the NHAR.
Affordability, of course, is related to pricing and an individual’s ability to pay that price. In the New Hampshire residential real estate market, home prices have been climbing for several years due, in part, to rising demand and limited supply, the economic principle of supply and demand.
The affordability of a single-family home has been on the decline in the last several months, according to NHAR data.
An affordability index of 100 means a household has exactly enough money to afford a home and associated costs in a given market. The less the index number, the less the affordability.
In April, according to the NHAR, the affordability index for a single-family home was 57, the lowest it’s been so far in 2025. The last time the index was at 100 in the state was mid-2017.
The affordability index for a residential condominium/townhouse is much better. The April index was 73.
The need is there. An updated housing supply estimate from the New Hampshire Department of Business and Economic Affairs says 32,704 housing units need to be added by 2025 to reach a balanced market by 2040. The 2023 housing survey indicates that it is likely we will reach 75% of this target.
While the inventory of homes for sale improved in April (up 31.5% from the prior year), prices remain high in New Hampshire. The April median price of a single-family was $528,000, the highest so far in 2025 and 2.5% more than the prior year. The price of a condo was $410,000, up 3.8% from last year.
On the positive side, according to Quinn, the state Legislature is taking some action to correct the supply issue.
“The good news is that this seems to be a legislative season in which the state’s policymakers have begun to recognize the housing crisis for what it is, a critical inventory crisis, and we have seen some promising efforts in the State House to push back. But this supply hole has been many years in the making, and it will take a persistent effort for years to come to dig out,” said Quinn.
For example, HB 577 increases the size of accessory dwelling units (ADUs) and allows them to be detached from the home. The measure, after having cleared the House, was passed by the Senate on May 15.
The legislation, which would take effect July 1, increases the allowed size of an ADU from 750 to 950 square feet. Currently, attached ADUs are allowed by right in a community. This bill expands the definition to allow detached units.
“We can’t afford to let this momentum stall. Housing supply needs to remain a priority if New Hampshire is going to continue as an economic beacon for the region and the rest of the country,” said Quinn.
Nationally, according to the NAR study, certain states are seeing improvements in their supply. In Texas, Florida and Tennessee, “inventory has not only recovered but is now higher than it was before the pandemic. Even out West, in places like Colorado, listings have rebounded,” it said.
But that comes with a caveat.
Although the total number of homes for sale has improved since the low point in 2021, many new listings are simply out of reach for a large share of American households,” said the NAR report. “That’s why home sales in the lower- and middle-price tiers remain sluggish and more volatile than the high-end market — high prices, elevated mortgage rates, and a lack of affordable options still squeeze buyers at these levels.”
New Hampshire was among the areas cited as falling further behind in the number of affordable listings.
For those median-wage earners in the Granite State (the $98,000-a-year group), the state needs 1,277 homes priced at about $341,000 to achieve some balance, according to the NAR data. Households making $75,000 need 1,174 homes priced at about $256,000.
