A united front of organizations and lawmakers is stepping up efforts to address the growing housing crisis in New Hampshire before it escalates into a significant economic challenge.
New Hampshire’s housing situation has reached a critical level, exacerbated by a burgeoning population and a significant deficit in available housing.
The state, renowned for its favorable business environment, welcomed nearly 16,000 new residents between 2020 and 2022.
Unfortunately, this influx has not been matched by an increase in housing supply, which has been under strain for more than a decade.
Tackling the Housing Shortage
The 2023 Statewide Housing Needs Assessment from New Hampshire Housing reveals that the state is short approximately 23,500 housing units.
Projections indicate that to keep up with population growth, roughly 60,000 additional units will be essential between 2020 and 2030, and around 90,000 by 2040.
This translates to an estimated increase of about 52,500 households in the next ten years and approximately 74,400 by 2040.
Adding to the crisis is a sharp rise in housing prices, with the median listing now at $600,000, as per reports from Altos Research.
The scarcity of affordable housing is beginning to stifle New Hampshire’s economic potential, making it increasingly difficult for employers to attract skilled workers when suitable housing options are limited.
Local real estate experts highlight that recruiters are facing obstacles beyond just salary and benefits, as many candidates struggle to find appropriate housing.
In response, some businesses, particularly in rural areas, have taken the unusual step of purchasing bed-and-breakfast properties or multi-family units to house their employees.
Industry insiders argue that enhancing the availability of housing can foster greater stability and growth in the market.
Recognizing the urgent need for diverse housing solutions, businesses throughout New Hampshire are pushing for initiatives that particularly target younger talent, especially recent college graduates.
The uptick in apartment developments in larger communities reflects a positive trend in retaining this crucial demographic.
Overcoming Structural Barriers
Despite some encouraging signs, housing advocates express frustration over the slow pace of new home construction, especially for starter homes.
Experts point to the restrictive zoning regulations established by the 1925 New Hampshire Zoning Enabling Act, which grants municipalities significant authority over land use, leading to inconsistent zoning practices.
While some areas, like Grafton and Coos counties, lack traditional zoning structures, others have imposed onerous minimum lot size requirements that impede new developments.
These extensive zoning laws arose in response to public health and safety concerns regarding septic systems.
However, many believe that the initial fears have dissipated, leaving behind regulations that may no longer be relevant and are driving up construction costs.
State Representative Joe Alexander has taken the initiative to propose two new pieces of legislation for the 2025 session.
The first bill seeks to reassess minimum lot size requirements, compelling municipalities to justify the need for large lots based on soil conditions.
The second bill aims to revisit the Zoning Enabling Act, clarifying its original intent to ensure it remains applicable to today’s housing landscape.
Strategizing Housing Supply
Accessory dwelling units (ADUs) present another potential avenue for easing the housing crunch.
Although a law permitting the construction of ADUs in many single-family zones was enacted in 2017, the expected boom in such housing has yet to materialize.
Local zoning restrictions, particularly strict rules regarding parking and occupancy, have stymied growth in this area.
Advocacy groups like AARP and Stay Work Play New Hampshire, along with supportive lawmakers, are pushing for reforms to encourage ADU development in 2025.
Given that New Hampshire has the second-oldest population in the U.S., many older residents are eager to downsize but face obstacles due to high home prices and interest rates.
This complicates not only their own living situations but also the ability of caregivers to remain close to their loved ones.
AARP has expressed strong enthusiasm for ADUs, viewing them as a practical solution for providing housing for caregivers while allowing retirees to reduce their living space and earn rental income from their primary residences.
Similarly, Stay Work Play New Hampshire is focused on retaining young professionals, stressing the importance of addressing demographic changes to ensure adequate housing for the workforce of tomorrow.
In response to the housing shortage, New Hampshire has launched various initiatives through InvestNH Housing aimed at streamlining the approval and construction of affordable housing options for the workforce.
Lawmakers recognize that the state’s economic potential is hampered by a lack of housing availability.
The strategies include providing financial incentives to municipalities for expediting multi-family construction permits and a program to assist with the costs of demolishing or renovating dilapidated properties.
Additionally, the Housing Opportunity Program encourages communities to proactively review their zoning policies and service capabilities in preparation for future growth.
While advocates for housing reform urge changes to local zoning laws, they also stress the importance of preserving local control over such decisions.
Striking a balance between property owners’ rights and municipal autonomy will be crucial.
Addressing New Hampshire’s housing crisis will require thoughtful dialogue and collaborative efforts among all stakeholders involved.
Source: Housingwire