Based on their income level, registered nurses can afford a two-bedroom apartment on the public rental market for $1,833 a month. Public school teachers and electricians earn enough for a typical one-bedroom apartment for $1,430.
As rents rise again, many carpenters, firefighters, construction workers, janitors, retail workers and fast-food workers can no longer afford New Hampshire’s rental market, according to new data from New Hampshire Housing, an organization that advocates for affordable housing across the state.
Nearly half of New Hampshire renters are considered “rent burdened,” meaning they spend 30% or more of their income on rent.
Over the past decade, rental costs have steadily increased. In 2019, the average rent for a two-bedroom apartment was just over $1,300. Last year, it rose to just over $1,700. At $1,833, the current average rent for a two-bedroom apartment is 36% higher than it was five years ago.
New Hampshire’s housing crisis continues to burden the rental market with high costs and low availability, driving up home prices. Last month, the median home value exceeded $500,000. The rental vacancy rate remains below 1%, while the median rent continues to rise.
Housing projects that could ease these pressures are often slow to move forward or rejected due to local regulations and zoning. In Concord, a project that could create up to 1,000 apartments and condos, including affordable ones, was halted largely because the land is zoned for industrial use and the city won’t allow attempts to change that.
According to New Hampshire Housing, rising costs mean first-time buyers are unable to save money for the down payment and other costs, leaving them trapped in the rental market.
As a result, there is a bottleneck on the rental market: demand is significantly greater than supply.
In Merrimack County, the current average rent of $1,500 for a two-bedroom apartment is below the national average, but has nevertheless increased 29% over the past five years.
To meet housing needs, the state is estimated to need to build 60,000 housing units by 2030 and 90,000 by 2040. New polls show that state residents are more aware of the housing crisis.
In June, one in three respondents to a University of New Hampshire Survey Center poll said housing was the state’s most important issue, while the economy, immigration and jobs were in the single digits.
Voters also expect their local politicians to take action.
In a report from the Saint Anselm College Survey Center, 75% of respondents said their community needed to have more affordable housing, 61% said more multifamily housing needed to be available, and 59% wanted to see more affordable housing.
“This strong pro-housing stance and the recognition that changes at the state level can remove barriers to housing are critical,” Rob Dapice, executive director of New Hampshire Housing, wrote in the report.
In the race for governor, the four leading candidates have highlighted housing as the most important campaign issue. In the race for New Hampshire’s 2nd congressional district, the candidates have also presented plans for housing policy.
Meanwhile, at the Statehouse, some bills from the newly created Select Committee on Housing have made their way to the governor’s desk. As a result of this work, lawmakers hope the group will remain a fixture in future sessions.
