KEENE, N.H. (MyKeeneNow) New Hampshire’s ongoing housing crunch took center stage Friday morning as Jessica Williams, a senior policy analyst with the New Hampshire Fiscal Policy Institute, joined “Good Morning with Dan Mitchell” on WKBK Radio.

During the interview, Williams outlined the scale of the state’s affordability challenges, pointing to steep home prices, limited housing supply and widening income disparities between renters and homeowners.

The statewide median price for a single-family home reached about $535,000 in 2025, she said, marking a dramatic increase of more than 78 percent since 2019 and nearly 300 percent since 1999. While prices peaked during the COVID-19 pandemic, they have remained above $500,000 heading into 2026.

“The core issue really comes down to supply and demand,” Williams said, noting that a balanced housing market typically has about six months of inventory. New Hampshire, by contrast, had just 1.8 months of supply in 2025 — an improvement from 2021 levels, but still far below what’s needed.

Regional differences persist across the state. In Cheshire County, the 2025 median home price was about $395,000, significantly lower than the statewide figure, but still up nearly 80% from 2019.

Looking ahead, Williams said the state faces a substantial housing shortfall. New Hampshire Housing estimates roughly 90,000 additional units will be needed by 2040 to meet demand. As of 2024, only about 30 percent of that goal has been reached, leaving approximately 63,000 units still to be built.

Much of the new development has been concentrated in southeastern parts of the state, particularly in Rockingham, Strafford and portions of Hillsborough counties, where nearly two-thirds of new housing permits are issued. Even then, construction often lags due to high building costs, labor shortages and infrastructure limitations.

Population trends have also contributed to housing pressure. Williams said New Hampshire has long relied on in-migration for growth, with the pandemic accelerating that trend as remote workers and out-of-state buyers moved in. While migration has slowed more recently, it continues to add demand in an already tight market.

Renters, she emphasized, are feeling the greatest strain. About half of renters in New Hampshire are considered “cost-burdened,” meaning they spend more than 30% of their income on housing. That compares to about 28 percent of homeowners with a mortgage and 20% of those without one.

In Cheshire County, the gap is especially stark: median household income for homeowners is about $99,000, while renters earn roughly $48,000 — less than half.

Rental availability remains tight as well, with vacancy rates below 5 percent for more than a decade. In 2024, the median monthly cost for a two-bedroom unit, including utilities, reached about $1,800 — a roughly 58 percent increase since 2015.

For prospective homebuyers, the financial barriers are significant. Williams said a household purchasing a median-priced home with typical financing terms could face a monthly mortgage payment exceeding $3,900, not including additional costs. To keep that payment within affordable limits, a household would need an annual income of about $158,000 — a level reached by only about one-third of New Hampshire households.

State and local officials have begun pursuing a range of policy responses, including zoning changes and legislation aimed at increasing housing supply. However, Williams stressed that the issue stems from years of underbuilding, particularly following the Great Recession, and will require a multi-faceted approach.

“There’s no single solution,” she said, adding that broader cost pressures such as childcare, health care and elder care also play a role in overall affordability.

Property taxes further complicate the picture. Because tax rates vary widely by municipality, they can significantly influence where people choose — or are able — to live, sometimes forcing longer commutes or limiting options to areas with available inventory rather than preferred locations.

The discussion also touched briefly on manufactured housing, with a caller raising concerns about local zoning barriers and perceptions that can limit development of that lower-cost option.

Mitchell noted that a future segment will take a deeper look at property taxes and their role in housing affordability.

Listen to the full interview: