CONCORD, N.H. (MyKeeneNow) New Hampshire communities approved more new housing units last year than they have in more than two decades, an uptick that suggests construction activity is beginning to rebound even as the state continues to grapple with a limited supply of homes.

According to figures released in a recent report from the state Department of Business and Economic Affairs, municipalities issued permits for 5,822 housing units in 2024 — the highest annual total since 2005. The report, which tracks building permits and housing supply trends across the state, indicates that if all of those projects move forward, tens of thousands of new homes will have been added since 2020.

A few communities in the Monadnock Region were also included among the state’s designated Housing Champion municipalities. According to details included in the Department of Business and Economic Affairs report, Hinsdale, Jaffrey and Keene each approved new housing units as part of the program.
Information from the department’s report notes that roughly 25,688 housing units could be added statewide between 2020 and 2025 based on permits issued during that period. Even with that progress, the state remains well short of what experts say is needed to balance the housing market.

A statewide housing needs assessment conducted by New Hampshire Housing estimated that more than 32,700 additional homes were required between 2020 and 2025 to help stabilize supply by 2040. Long-term projections included in the assessment suggest the state will ultimately need more than 88,000 new units by that year, meaning tens of thousands more homes still must be built to meet demand.

State officials say the recent increase in construction is an encouraging sign. In statements summarized in the department’s release, leaders said the pace of homebuilding is an important indicator for economic growth, noting that housing availability plays a key role in attracting and retaining workers.

The report also highlights the growing role of multi-unit developments in meeting housing demand. In 2025, nearly two-thirds of newly constructed housing units were located in apartment or multi-family buildings — the largest share recorded since the state began tracking those numbers in the 1970s. Single-family homes represented a little over a third of the new housing, while manufactured homes accounted for a small portion.

Despite the statewide need for housing, development continues to be concentrated in a limited number of communities. Data cited in the report shows that just 23 municipalities — home to about 43 percent of the state’s population — accounted for nearly two-thirds of the housing units approved that year.

Many of those projects were approved in communities recognized by the state as “Housing Champions,” a designation created to highlight municipalities that have made changes aimed at encouraging residential development. The program, which the department says rewards communities that update zoning rules or streamline permitting processes, accounted for nearly half of the housing units approved last year.

Officials involved with the program suggested in the release that the communities participating in the initiative demonstrate how local policy changes can help increase housing availability, offering examples other towns might follow as they work to address the state’s ongoing housing shortage.