New data collected earlier this year shows that rental costs in New Hampshire continue to rise, putting pressure on the overall housing supply and finances of renters in the Granite State. The average price of a rental apartment in New Hampshire reached a record high of $1,691 in 2024. In addition, the average price of a single-family home in the state rose to $530,000 in July 2024, the highest level ever. Rising housing costs and limited supply can create barriers to safe and affordable housing for families and individuals in the Granite State, as well as other challenges related to transportation and access to services. Rising costs for renters and homeowners have contributed to the difficulties facing households across the state, particularly among low- and moderate-income renters. To make matters worse, renters may have difficulty affording the rising cost of living and they may be less inclined to enter the real estate market to purchase a home.
Higher costs across the state
According to the Report on the residential rental cost survey 2024 Based on data collected between March and May 2024 and published by New Hampshire Housing, the state’s housing finance agency, the median monthly rent for all rental units in the Granite State, including utilities, was $1,691. For a two-bedroom unit, the median cost was $1,833 per monthan annual increase of about 3.9 percent from 2023, which was slightly higher than the average annual inflation of 3.3 percent faced by New England consumers during this period.
While rent prices have been rising since 2014, the increase in costs slowed between 2023 and 2024 compared to the annual change in the previous year. From 2022 to 2023, the median monthly rent for a two-bedroom apartment increased by about 11.4 percent, partly due to Increase in utility costsIn 2024, the average utility costs for a two-room apartment where the tenant pays for heating were 266 dollars per montha decrease of about 15.6 percent compared to the average cost for $315 in 2023. Lower utility costs in 2024 could explain the smaller increase in overall monthly rental costs relative to the change in total costs from 2022 to 2023.
Rental prices across the Granite State have risen rapidly since the COVID-19 pandemic began. In 2019, a two-bedroom apartment cost $1,347 a month, which has increased by about 31 percent through 2024. The declining availability of rental apartments just before the pandemic began is likely a major factor influencing the price increase in recent years. After rising to 1.8 percent in 2020, the vacancy rate for two-bedroom rental apartments fell to 0.6 percent in 2021. Although the rate has fluctuated every year since then, the vacancy rate for a two-bedroom apartment in 2023 (0.6 percent) remained lower than the pre-pandemic level in 2019 (0.8 percent). According to New Hampshire Housing, the vacancy rate needed for a balanced rental market is 5 percentwhat kind of rental apartments in the country last year 2010.
Regional differences in the supply and demand for housing affect the average monthly rental costs. The median price for a two-bedroom apartment in 2024 ranged from the highest price of $2,069 per month in Rockingham County to $1,161 per month in Coos County. In Coos, Carroll, Cheshire and Sullivan counties, the median rental cost for a two-bedroom apartment was under $1,500 per month, and the state’s remaining six counties all had higher prices. While rental costs have increased in all 10 counties, the increases have been unevenly distributed across the state. From 2019 to 2024, the median price for a two-bedroom apartment in Grafton County has increased by about 67 percent, the largest percentage increase of any county. According to New Hampshire Housing, rising costs in Grafton County have been driven by rents in the Lebanon and Plymouth areas. In comparison, Merrimack County saw the smallest percentage increase, about 29 percent, during that time period. Rising rental costs in certain parts of the state can impact where families can afford to live, which further impacts the availability of necessary resources like child care and health services. In addition, higher housing costs can discourage individuals and families from moving to certain areas because of job opportunities, leading to a labor shortage.
Impact of the current rental market
Rising housing costs increased the financial burden on low- and middle-income Granite Staters. As of 2022, the median household income for homeowners in the state was nearly twice that of renters, at about $108,000 and about $56,000, respectively. According to New Hampshire Housing, only about 24 percent of rental housing in 2024 were affordable for those earning the median renter household income of $56,814. Based on wage data analyzed by New Hampshire Housing, of 11 selected high-demand occupations, only nurses had a median wage sufficient to afford rent and utilities for a two-bedroom apartment in the state. In addition, public school teachers and electricians were the only occupations that could afford a one-bedroom apartment based on the median wage, while all other high-demand occupations, such as nursing assistants and construction workers, earned median monthly wages below the median price for a one-bedroom apartment. Renters are also more likely to pay more than 30 percent of their income on housing costs, the amount the U.S. Department of Housing and Urban Development defines as the cost burden of housing, which is defined as simple but reliable Measure of affordability. According to Data from the US Census Bureau from 2018 to 2022, almost half of renters in the Granite State were burdened by housing prices. Among those whose household income is less than $35,000, about three-quarters paid more than 30 percent of their income on rent.
The rise in housing costs may be linked to the increase in eviction filings across the state, as more low-income families in New Hampshire may struggle to pay their rent. According to the Eviction Lab at Princeton UniversityAbout 4.3 evictions were filed per 100 renter households in the Granite State in 2018. This rate was more than double that of neighboring Vermont (2.1) and also higher than Maine (2.8) and Massachusetts (3.5) that year. The total number of evictions in New Hampshire increased from 3,742 registrations in 2020, with a temporary eviction moratorium in New Hampshire, followed by State-funded rental subsidiesTo 6,221 in 2023. The total for 2023 was similar to the pre-pandemic figures in 2019 (6,514 registrations). The increase in evictions may have contributed to the rise in homelessness. From January 2022 to January 2023, the number of homeless people in New Hampshire increased by about 52 percent, according to the U.S. Department of Housing and Urban Development. Time estimates.
The price increase in the overall rental market is not unrelated to the challenges in the overall housing market. According to the New Hampshire Association of Realtors, the average price for a single-family home in New Hampshire in July 2024 was 530,000 US dollarsan increase of 76.7 percent compared to the average price of 300,000 US dollars in July 2019. According to Harvard University’s Joint Center for Housing Studies, a family buying a home in Hillsborough County needs an annual income of about 156,000 US dollars to afford a median-priced home. A middle-income family that could have afforded a home in 2019 may struggle to buy one in 2024. In addition, limited availability of single-family homes may require households that can afford a home to stay in rental housing longer, potentially resulting in fewer rental homes available for families and individuals who cannot afford a home. As the median price of single-family homes continues to rise, low- and middle-income renters in the Granite State will likely struggle to keep up with rising housing costs.
The New Hampshire Fiscal Policy Institute shares this article with partners in The Granite State News Collaborative including NH Business Review. NHFPI is an independent nonprofit organization that researches, develops, and promotes public policies that advance economic opportunity and prosperity for all New Hampshire residents. For more information, visit www.nhfpi.org
