High home prices strain NH workforce

THAT POSSIBILITY. WELCOME TO NEW HAMPSHIRE’S BUSINESS. I’M FRED KOCHER. A REPORT FROM THREE NEW HAMPSHIRE SOURCES CONCLUDES THE COST OF HOUSING IN NEW HAMPSHIRE IS AT A RECORD HIGH, THAT PRICES ARE RISING FASTER THAN INCOMES, AND IT’S HARDER FOR BUSINESSES TO ATTRACT AND RETAIN WORKERS. WHAT’S SIGNIFICANT IS THAT THE DATA IN THE REPORT IS FROM THREE DIFFERENT SOURCES NEW HAMPSHIRE HOUSING, NEW HAMPSHIRE REALTORS AND THE DEPARTMENT OF BUSINESS AND ECONOMIC AFFAIRS. WITH ME IN THE STUDIO TO WALK THROUGH THE CONTINUING HOUSING DILEMMA IN NEW HAMPSHIRE, IS THE EXECUTIVE DIRECTOR AND CEO OF ONE OF THOSE AGENCIES. ONE OF THOSE SOURCES, I SHOULD SAY, NEW HAMPSHIRE HOUSING, WHICH COMPILED THE REPORT. ROB DAPOS, WELCOME. NICE TO HAVE YOU HERE. THANK YOU. ROB. NEW HAMPSHIRE HOUSING’S MISSION IS TO SUPPORT AFFORDABLE HOUSING. SO YOU’RE THE RIGHT PERSON TO EXPLAIN THE REASONS FOR THIS GRAPH THAT WE’RE GOING TO PUT UP ON THE SCREEN. AND THE SINGLE FAMILY MEDIAN SALES PRICE, IT SHOWS THE SALES PRICE OF A HOUSE IN NEW HAMPSHIRE FROM 1998 ON THE FAR LEFT TO 2025 ON THE FAR RIGHT, GOING UP STEADILY SINCE 2012, WITH THE MEDIAN SALES PRICE FOR A SINGLE FAMILY HOME IN NEW HAMPSHIRE, NOW AT 565,000, A RECORD HIGH THAT ONLY 15% OF HOUSEHOLDS CAN AFFORD. ROB. YEAH, THANK YOU VERY MUCH, FRED. AND I THINK IT’S IMPORTANT TO SHARE THIS INFORMATION NOW BECAUSE THERE IS A SENSE THAT THE MARKET IS COOLING AND IT IS BY SOME METRICS, HOUSES ARE STAYING ON THE MARKET A LITTLE BIT LONGER. BUT WHAT WE’RE SEEING IS THAT AFFORDABILITY IS STILL A REAL PROBLEM. AND I THINK THOSE NUMBERS KIND OF SPEAK FOR THEMSELVES. $565,000, YOU WOULD NEED 100 TO EARN $182,000 TO AFFORD THE MEDIAN HOME THAT’S SELLING IN NEW HAMPSHIRE. AND THERE’S JUST THAT’S A LOT MORE THAN A LOT OF FAMILIES. 565,000 IS I HAVE LOOKED IT UP. 100,000 AT LEAST. MORE THAN THE REPORTED NATIONAL AVERAGE. YEAH. THIS IS IN SOME WAYS A PRETTY HIGH COST STATE. SO THE OTHER ISSUE IS SUPPLY. AS YOU KNOW, LET’S GO TO THAT GRAPHIC. THE GRAPHIC SHOWS A SINGLE FAMILY INVENTORY OF HOUSING IN NEW HAMPSHIRE FROM 2009 ON THE LEFT TO 2025 ON THE RIGHT, NEW HOMES ON THE TOP LINE, EXISTING HOMES ON THE LOWER LINE, A LOT LESS OF BOTH. IS THE BOTTOM LINE. YEAH, AND I WOULD SAY THAT’S NOT REALLY ANOTHER ISSUE, BUT TWO SIDES OF THE SAME COIN, YOU KNOW, EVEN AS SUPPLY HAS. MODERATED A LITTLE BIT, A BALANCED MARKET IS SIX MONTHS OF OF HOUSES FOR SALE. AND FOR A LONG TIME WE’VE BEEN AT UNDER TWO MONTHS OF HOUSE FOR SALE. NOW IT’S INCHED UP TO TWO AND A HALF MONTHS. THAT’S BETTER. BUT IT’S STILL NOT A BALANCED MARKET. AND I THINK YOU SEE THAT IN THE FACT THAT PRICES ARE STILL GOING UP. AND SO AFFORDABILITY IS STILL A REAL PROBLEM. YEAH. IF YOU CAN’T AFFORD TO BUY YOUR RENT. AND SO HERE IS A GRAPH ON THAT. THE GRAPH SHOWS RENT INCREASES, INCLUDING UTILITIES OVER THE PAST FIVE YEARS IN NEW HAMPSHIRE ARE UP 36% FOR A TWO BEDROOM, UP 35% FOR ALL UNITS. RIGHT. AND I THINK YOU SAID IT WELL, THAT PEOPLE WHO WOULD PEOPLE REMAIN RENTERS WHEN THEY WOULD LIKE TO BUY A HOME. AND THAT PUTS INCREASED PRESSURE ON THE RENTAL MARKET. AND THAT CREATES A LOT OF HARDSHIP FOR LOWER INCOME FOLKS, SENIORS ON A FIXED INCOME, THOSE WITH A DISABILITY AND OTHERS. AND SO I THINK THESE RENT NUMBERS, WE’VE GOTTEN A LITTLE BIT OF SORT OF FATIGUE. THOSE NUMBERS ARE ALMOST NOT SHOCKING ANYMORE. BUT I THINK IT’S IMPORTANT TO REFLECT ON HOW MUCH HARDSHIP THEY’RE STILL CAUSING. AND OF COURSE, ALL OF THAT HAS AN IMPACT ON WORKFORCE. YES. AS YOU KNOW. SO LET’S GO TO THAT GRAPHIC. AND HERE IS A LOT TO LOOK AT HERE. BUT LOOKING AT THIS GRAPH IT SHOWS HIGH DEMAND OCCUPATIONS IN NEW HAMPSHIRE AND WHAT THEY CAN AFFORD FOR HOUSING. NURSES ON THE TOP LINE DOWN THAT LIST TO POLICE, ELECTRICIANS AND CARPENTERS ALL THE WAY DOWN TO HOME HEALTH AND CHILD CARE WORKERS AT THE BOTTOM LINE, BASED ON A MARKET ANALYSIS, THE BLUE LINES SHOW AFFORDABILITY AT 2024 FOR A TWO BEDROOM AND 1668 FOR A ONE BEDROOM. ROB. MOST HOUSING AND RENTAL COSTS IN NEW HAMPSHIRE ARE ACTUALLY HIGHER THAN THAT. WHAT IS THE ANSWER TO AFFORDABLE HOUSING IN NEW HAMPSHIRE? THE BUSINESS YOU ARE IN? WELL, IT’S A BIG QUESTION, FRED, AND I THINK, YOU KNOW, GOOD NEWS IS THERE’S BEEN A LOT OF PROGRESS AND THERE WAS PROGRESS LAST YEAR ON STREAMLINING THE STATE PERMITTING PROCESS. THERE IS SOME PROGRESS ON LOCAL ZONING. WE DIDN’T SEE THE INVESTMENTS WE WOULD HAVE LIKED IN AFFORDABLE HOUSING THAT WOULD HELP THE MOST VULNERABLE. I THINK THE FIRST THING, AND IT’S A TIMELY QUESTION, BECAUSE THE LEGISLATURE IS ABOUT TO START THEIR SESSION, BUT LET’S NOT DO ANY HARM. LET’S NOT MOVE BACKWARDS ON ANY OF THOSE POSITIVE CHANGES THAT HAVE BEEN MADE ON A BIPARTISAN BASIS OVER THE LAST FEW YEARS. BEYOND THAT, I THINK CONTINUING TO LOOK AT SOLUTIONS AT THE STATE AND LOCAL LEVELS, LOWER BARRIERS, TO MEET THE NEEDS OF RESIDENTS. WE’RE OUT OF TIME LOWERING BARRIERS. SO I’LL REMEMBER THAT. ROB DAVIS, WHO’S EXECUTIVE DIRECTOR AND CEO OF NEW HAMPSHIRE HOUSING, THANK YOU. THANK YOU. THANKS FOR BEING HERE. AND IF YOU MISSED PART OF THIS BRIEFING ON THE NEW ERA OF HOUSING IN NEW HAMPSHIRE, YOU CA