By Granite State Report
Why New Hampshire Rents Outpace Wages
In New Hampshire, the gap between wages and housing costs has widened to a point that threatens the financial stability of thousands of residents. Despite the state’s strong economy and low unemployment rate, the cost of renting an apartment has surged far beyond what most workers can afford. The imbalance is squeezing young families, low- and middle-income earners, and even professionals who once felt secure.
Rising Rents, Stagnant Pay
According to the New Hampshire Housing Finance Authority, the statewide median rent for a two-bedroom apartment has risen steadily year after year, recently surpassing $1,700 per month. To comfortably afford that rent, a household needs to earn over $68,000 annually. Yet, the state’s median renter household income lags far behind, leaving a significant shortfall.
While rents climb, wages have not kept pace. Industries like retail, hospitality, and care work—cornerstones of New Hampshire’s economy—pay an average of $15 to $20 per hour. Even for full-time workers, that falls short of the “housing wage” required to meet rent without spending more than 30% of income on housing.
Why the Shortage?
Several factors drive the mismatch:
- Limited Housing Supply: New Hampshire has one of the lowest rental vacancy rates in the country, often hovering below 1%. With so few units available, landlords can command higher rents.
- Zoning and Land Use Restrictions: Local regulations often restrict multifamily housing, making it harder to build the kinds of apartments and townhomes that would ease the crunch.
- Population Growth: Migration from Massachusetts and other states brings new residents with higher incomes, putting pressure on local housing markets.
- Construction Costs: Rising labor and material expenses make building new housing more expensive, further discouraging supply.
The Human Impact
The rent-wage gap isn’t just an economic issue—it’s reshaping communities. Young workers are leaving New Hampshire for more affordable states. Families are doubling up in crowded homes. Seniors on fixed incomes face impossible choices between paying rent, buying groceries, or covering healthcare costs.
For many, the “American Dream” of stability and independence feels increasingly out of reach.
Searching for Solutions
Policymakers and advocates have proposed a range of ideas to tackle the crisis:
- Expanding Affordable Housing Development: Increasing funding for projects that specifically serve low- and middle-income residents.
- Reforming Zoning Laws: Allowing more multifamily and mixed-use developments in towns traditionally dominated by single-family zoning.
- Raising Wages: Efforts to boost the minimum wage and expand workforce training could help renters better keep up with costs.
- Incentivizing Landlords: Programs that offer tax breaks or subsidies for landlords who keep rents affordable.
Conclusion
New Hampshire’s rental market is a microcosm of a national challenge: housing costs rising faster than wages. Without action, the state risks pricing out the very people who keep its economy and communities running. Bridging the gap will require bold policy choices, community support, and a recognition that housing is not just a commodity—it’s the foundation of a stable, thriving society.
