The median home now costs $540,000. Rents have crossed $2,100 a month. New zoning laws could help—but some lawmakers want to repeal them. Here is the full picture of what’s happening, what’s changing, and what options you have left.
By Granite State Report
If you live in New Hampshire and feel like the cost of keeping a roof over your head has gone from difficult to absurd, you are not imagining things. The numbers confirm what your bank account already knows: the Granite State’s housing market has become one of the most punishing in the country, and it is getting worse.
According to New Hampshire Housing, the state’s housing finance authority, a family would need to earn $182,000 per year to afford the median-priced single-family home. Only 15 percent of New Hampshire households earn that much. The median sale price hit $540,000 in January 2026—the highest price ever recorded for that month—and shows no signs of retreating. Home prices have risen 122 percent over the past decade, according to NH Business Review, while inflation-adjusted household incomes rose just 19 percent over the same period. The gap between what homes cost and what people earn is not a crack. It is a canyon.
The rental market offers no escape. New Hampshire ranks as the 12th most expensive state for rent nationally, with the statewide average fair market rent now at $2,107 per month. More than half of all renters in the state are considered “cost burdened,” meaning they pay more than 30 percent of their income on housing. Vacancy rates hover around 4 percent—well below the 5 to 7 percent considered healthy—which means landlords have little incentive to lower prices and tenants have little leverage to negotiate.
This article is a practical guide. It lays out the full scope of the crisis, explains what the state is doing about it (and what it is undoing), and gives you the information you need to make decisions—whether you are a renter trying to survive, a buyer trying to break in, a homeowner considering an accessory dwelling unit, or a voter trying to hold your legislators accountable.
By the Numbers: How Bad Is It?
The data paints a picture that is hard to overstate. The New Hampshire Association of Realtors reports that statewide housing inventory sits at approximately two months of supply. A balanced market requires five to six months. This means there are roughly two to three buyers competing for every available home, which keeps prices elevated even as mortgage rates hover between 5.9 and 6.2 percent.
The Housing Affordability Index—a metric that measures whether the median household can afford the median home—stands at 58, tied for its lowest level on record. That number means the median household earns only 58 percent of what would be needed to qualify for a mortgage on a median-priced home under current lending standards. Put another way: if you earn the median income of roughly $85,000 in New Hampshire, you are $60,000 to $70,000 short of qualifying for the median home.
County-level data reveals that the crisis is not uniform. Rockingham and Hillsborough Counties, which border Massachusetts and benefit from proximity to the Boston job market, have seen the sharpest appreciation. Cheshire County, which includes Keene, has seen prices rise even faster than the statewide average in recent months. Coos County and parts of the North Country remain more affordable, but wages there are also lower, and the affordability advantage is narrower than it appears.
New Hampshire also has a structural problem that makes the crisis self-reinforcing: it has no state income tax and no sales tax. While that tax structure is a point of pride for many residents, it means the state relies heavily on property taxes to fund schools and services. Property tax rates vary wildly by municipality—from about 1 percent of home value in some towns to over 3 percent in others. The average monthly property tax payment per household is $806. For many homeowners, the tax bill adds hundreds of dollars a month on top of the mortgage, pushing total housing costs even further beyond reach.
New Hampshire Housing estimates the state needs 90,000 additional housing units by 2040 to meet demand. In 2025, roughly 5,800 units were built—the highest number since 2006, but still only 80 percent of the building pace needed to close the gap.
Why the Supply Is So Low: Zoning, NIMBYism, and the ‘Snob Zoning’ Problem
The housing shortage is not an accident. It is the cumulative result of decades of local zoning decisions that have made it difficult or impossible to build the types of housing that ordinary people can afford.
Representative Joe Alexander, a Goffstown Republican and chairman of the House Housing Committee, has been blunt about the problem. He calls much of New Hampshire’s local zoning “snob zoning”—regulations designed not to protect health or safety, but to keep certain people out. Large minimum lot sizes, restrictive setback requirements, excessive parking mandates, aesthetic review boards, and prohibitions on multi-family construction have all contributed to a landscape in which the only housing that gets built is expensive single-family homes on large parcels.
The math is straightforward. If a town requires a minimum two-acre lot per home, and a developer has 20 acres, they can build at most 10 homes. If the same parcel allowed quarter-acre lots or multi-family construction, it could support 40, 60, or even 80 units. The zoning code determines the ceiling, and in many New Hampshire communities, that ceiling has been set deliberately low.
This is not a partisan issue. The New Hampshire Business and Industry Association, the statewide chamber of commerce, has identified housing as a top economic priority. Employers across the state report that they cannot attract or retain workers because those workers cannot find places to live. Young families are leaving for states with more affordable options. Seniors who want to downsize and age in place find few options between a four-bedroom house and a nursing home. The workforce consequences ripple through every sector of the economy.
What the Legislature Did in 2025—and Why It Mattered
The 2025 legislative session produced more pro-housing legislation than any previous year in New Hampshire history. With bipartisan support and Governor Ayotte’s backing, lawmakers passed a package of bills that represented a genuine shift in how the state approaches housing policy.
The most significant changes included HB 577, which allows homeowners to build both attached and detached accessory dwelling units by right in single-family zones—meaning towns cannot prohibit them. HB 631 requires municipalities to allow multi-family residential development on commercially zoned land, provided adequate infrastructure is available. SB 284 limits the number of parking spaces towns can require to one per housing unit in new developments.
These laws addressed some of the most entrenched barriers to housing construction. ADUs—often called “in-law apartments” or “granny flats”—allow homeowners to add a small rental unit to their property, increasing housing supply without changing the character of a neighborhood. Multi-family development in commercial zones converts underused strip malls, office parks, and parking lots into mixed-use areas where people can live near where they work and shop. Parking reform reduces the land area consumed by surface lots, which in many New Hampshire communities take up more space than the buildings they serve.
Housing advocates hailed the legislation as a turning point. But the fight was far from over.
The 2026 Backlash: Bills That Would Roll Back Progress
As the 2026 legislative session opened in January, more than a dozen bills were filed to repeal or weaken the housing reforms passed just months earlier. The backlash is being led by lawmakers who argue that Concord overstepped by imposing statewide zoning mandates on local communities.
Among the repeal bills: HB 1012 would eliminate the statewide right to build accessory dwelling units. HB 1010 would repeal the requirement for towns to allow residential development in commercial zones. HB 1016 would remove the requirement for towns to allow manufactured housing. HB 1196 would repeal the Housing Champion program, which incentivizes municipalities that take steps to increase housing supply. Other bills seek to restore local authority over parking requirements and lot sizes.
The repeal effort is backed by the New Hampshire Municipal Association, which represents selectboards and planning boards. Executive Director Margaret Byrnes has argued that the 2025 laws are both overly restrictive and overly vague, creating legal uncertainty for towns trying to comply. Representative Len Turcotte, a Barrington Republican, has traveled the state speaking with communities that oppose the mandates.
Housing advocates acknowledge the backlash but believe the repeal effort faces long odds. Governor Ayotte has signaled support for the 2025 reforms and would likely veto repeal bills. Polling consistently shows that 76 to 78 percent of New Hampshire voters consider housing affordability a serious problem. And the economic argument for building more housing—lower costs, more workers, stronger communities—cuts across ideological lines.
Still, the outcome is not guaranteed. This is an election year, and legislators facing opposition from vocal constituents at town meetings may calculate that voting for repeal is the safer path. Voters who care about housing affordability need to pay attention to what their representatives are doing in Concord—not just what they say at campaign forums.
What You Can Do Right Now: A Practical Guide
Whether you are renting, trying to buy, already owning, or simply trying to understand the landscape, here are concrete steps you can take.
If You Are a Renter
Know your rights. New Hampshire does not have rent control, but landlords must follow notice requirements for rent increases and evictions. The New Hampshire Legal Assistance organization provides free legal help for low-income renters facing eviction or unsafe housing conditions. If your landlord is not maintaining habitable conditions, you have legal recourse under RSA 540-A, the state’s landlord-tenant law.
Explore rental assistance programs. New Hampshire Housing administers the Housing Choice Voucher program (Section 8) and maintains a list of subsidized housing options at NHHousing.org. Wait lists can be long, but applying early improves your chances. For emergency rental assistance, contact your local community action agency—there is one serving every county in the state.
Track new developments. As zoning reforms take effect, new multi-family and mixed-use developments are beginning to move through the approval pipeline in communities across the state. Keeping an eye on local planning board agendas can give you advance notice of new rental options before they hit the market.
If You Are Trying to Buy
Understand what you can afford before you look. With the median home at $540,000, most buyers will need to look below the median. The state’s Housing Affordability Index of 58 means the median buyer literally cannot qualify for the median home. Consider what you can realistically afford based on your household income, factoring in property taxes, insurance, and maintenance—not just the mortgage.
Look beyond the Seacoast and southern tier. While Rockingham and Hillsborough Counties are the most expensive, communities in Merrimack, Sullivan, Grafton, and Coos Counties offer significantly lower entry points. Remote and hybrid work arrangements have made it possible for more people to live farther from traditional job centers without sacrificing career opportunities.
Investigate first-time buyer programs. New Hampshire Housing offers several mortgage programs for first-time buyers, including down payment assistance. The Home Flex Plus program provides up to 4 percent of the home’s purchase price in down payment or closing cost assistance. Income and purchase price limits apply, but the thresholds are designed to cover a broad range of working families.
Consider homes that need work. In a market this competitive, the properties that move fastest are turnkey. Homes that need cosmetic or moderate repairs often sit longer and sell below listing price. If you have the skills or willingness to invest in renovations, you may find better value in properties that other buyers overlook.
If You Are a Homeowner
Consider building an ADU. Under HB 577, you now have the right to build either an attached or detached accessory dwelling unit on your property in any single-family zone. Towns cannot impose lot size requirements, setback standards, or design review criteria beyond what applies to your existing house. An ADU can generate rental income, provide housing for a family member, or simply increase the value of your property. The New Hampshire Housing Toolbox at NHHousingToolbox.org provides guidance on design, financing, and permitting.
Understand your property tax situation. New Hampshire’s property tax system funds schools, roads, fire departments, and municipal services. Your tax rate depends on your municipality, school district, and county. If your home’s assessed value seems out of line, you have the right to contest it through your town’s abatement process. The deadline for filing an abatement application is March 1 in most communities.
Engage with your local planning process. Zoning changes that affect your neighborhood are decided at planning board meetings and town meetings—not in Concord. If you support more housing in your community (or oppose specific developments), showing up at these meetings is the most direct way to influence the outcome.
If You Are a Voter
This is an election year. Every seat in the New Hampshire House and Senate is on the ballot. Housing policy is being actively fought over in Concord right now, and the outcome depends on who is in office come January 2027.
Housing Action NH maintains a bill tracker at HousingActionNH.org that shows every housing-related bill filed in the 2026 session, its current status, and how your representatives voted. The New Hampshire Business and Industry Association and the New Hampshire Association of Realtors also publish legislative scorecards. Use these tools to hold your representatives accountable for their votes on housing—not just their rhetoric.
Attend your town meeting. Many housing decisions happen at the local level, through zoning amendments proposed and voted on at annual town meetings. If your community has proposed changes to its ADU ordinance, parking requirements, or residential zoning, your vote at town meeting directly determines whether those changes pass.
The Stakes Could Not Be Higher
New Hampshire is at a crossroads on housing. The state took meaningful steps in 2025 to begin addressing a crisis that has been building for decades. New zoning laws, new building starts, and new programs have created genuine momentum. But that momentum is fragile. A handful of repeal votes in the Legislature, a governor who stops vetoing rollbacks, or a sustained failure to fund housing programs could undo the progress before it has a chance to take effect.
Meanwhile, the market is not waiting for Concord to figure it out. Prices continue to rise. Inventory remains critically low. Young workers and families continue to leave. Businesses continue to struggle to fill positions because the people they want to hire cannot find places to live.
This is not someone else’s problem. If you rent in New Hampshire, this is your problem. If you own a home and want your children or grandchildren to be able to stay in the state, this is your problem. If you employ workers or run a business, this is your problem. And if you vote, this is a problem you have the power to do something about.
New Hampshire’s housing crisis did not happen overnight, and it will not be solved overnight. But it can be solved. The question is whether the people who live here care enough to demand it.
