Increasing housing costs have severely constrained household budgets for New Hampshire families. In 2024, the median cost for purchasing a single-family house in the Granite State reached a record high of $540,000 in June, a 71.4% increase from the same month five years earlier.
House sale prices have increased at a faster rate since the start of the COVID-19 pandemic.
Escalating costs illustrate the financial barriers that households may face when finding a home. Using the January-November 2024 median single-family house sale price of $515,000, an average 30-year mortgage interest rate of 6.7%, an average property tax rate of $18.81 per $1,000, and a 5% down payment, a family buying a home in today’s market would have a monthly mortgage payment of about $4,000.
Rental costs have also reached a record high.
The 2024 statewide median rental price, including utilities, of a two-bedroom rental unit was $1,833, a 36.1% increase from 2019. High housing costs may have disproportionate impacts on renters, who have significantly lower median incomes than homeowners. The statewide median household income among renters was $53,816, slightly less than half the $114,853 homeowner median income, in 2023.
According to the federal government, families paying more than 30% of their incomes towards housing are defined as being cost-burdened. U.S. Census Bureau data show about 51% of New Hampshire renters met the definition of cost-burdened. Among renters with annual incomes less than $35,000, around three out of four paid more than 30%, while half of renters with these low incomes contributed at least half of their incomes towards housing.
Rising housing costs affect renters who are likely to face additional barriers tied to income, education and housing quality. Renters in New Hampshire disproportionately identify with a racial or ethnic minority group, have lower levels of educational attainment or live in older homes, which can increase the likelihood of being exposed to environmental toxins that contribute to long-term health consequences.
Higher rental costs and median sale prices are driven by the low supply of housing inventory across New Hampshire. Current housing constraints can hinder renters’ ability to move into the purchasing market, while also posing challenges for families and young professionals looking to move to the Granite State. Affordability, increased inventory and expanded housing supports may help ensure that residents are able to remain in the state, as well as bolster New Hampshire’s population growth and economic vibrancy.
