Analyzing the cost of living within the Granite State

WELCOME TO NEW HAMPSHIRE’S BUSINESS. I’M FRED KOCHER THAT THE REPORT FROM NEW HAMPSHIRE HOUSING WITH THE TITLE WHO CAN AFFORD TO LIVE IN NEW HAMPSHIRE? THE REPORT SAYS PRICES HAVE RISEN FASTER THAN INCOMES. NOW, HERE’S THE CHART THAT SHOWS IT. MEDIAN FAMILY INCOME AND HOME PRICES FOR SINGLE FAMILY HOME IN 1998 TO 2025. THE THIN BLUE LINE AT THE BOTTOM OF THE CHART IS HOUSEHOLD INCOME. FROM 1998 TO 2025, UP SLIGHTLY BY 19%. THE THIN YELLOW LINE IN THE MIDDLE IS THE PRICE FOR A SINGLE FAMILY HOME IN NEW HAMPSHIRE. FROM 1998 TO 2025, AGAIN, WHICH GREW 117%. SO THE MEDIAN HOME PRICE NOW IS MORE THAN FIVE TIMES THE MEDIAN INCOME. NOW, THE THICK BLUE BARS ARE US RECESSIONS IN THOSE YEARS. NOW TAKE A LOOK AT THIS. THE MONTHS SUPPLY OF INVENTORY BY PROPERTY TYPE 2009 TO 2025. THE TOP BLUE LINE REPRESENTS INVENTORY OF ALL NEW HAMPSHIRE PROPERTY TYPES. THE COMBINATION OF BLUE AND YELLOW LINES REPRESENT EXISTING AND NEW PROPERTIES. ALL THE LINES REACH A CRITICAL LOW IN 2021 AND ARE STILL LOW NOW. HOURLY WAGE NEEDED TO AFFORD A MEDIAN RENT. NEW HAMPSHIRE IN THE CITIES OF NEW HAMPSHIRE, 20 24, 2513 CITIES ARE SHOWN IN THE MAP, WITH HOURLY WAGES NEEDED TO AFFORD A MEDIAN RENT IN THAT COMMUNITY. AT THE TOP IS BERLIN, WITH AN HOURLY WAGE NEEDED TO AFFORD RENT AT 2071. ON THE LEFT IS LEBANON, WITH AN HOURLY WAGE NEEDED TO AFFORD RENT AT 4940. IN THE MIDDLE OF THE MAP IS CONCORD, WITH AN HOURLY WAGE TO AFFORD RENT AT 3025 AND AT THE BOTTOM PORTSMOUTH WITH AN HOURLY WAGE TO AFFORD RENT AT 4421. AND YOU MAY SEE YOUR CITY ON THAT LIST WITH ME TO EXPLAIN HOW NEW HAMPSHIRE REACHED THE POINT WHERE THERE ISN’T ENOUGH AFFORDABLE HOUSING, AND HOW LONG IT WILL TAKE TO HAVE ENOUGH, IS THE. ROB D’APICE, THE EXECUTIVE DIRECTOR AND CEO OF NEW HAMPSHIRE HOUSING FINANCE AUTHORITY, BEST KNOWN AS NEW HAMPSHIRE HOUSING, WHICH HAS A MISSION TO HELP FINANCE AFFORDABLE HOUSING IN THE STATE. WELCOME. THANK YOU. FRED, NICE TO HAVE YOU HERE. THERE’S A NEW REPORT OUT. AS YOU KNOW, FROM NEW HAMPSHIRE BUSINESS AND ECONOMIC DEVELOPMENT THAT SAYS NEW HAMPSHIRE IS BUILDING HOMES AT THE FASTEST PACE IN TWO DECADES. IT ALSO SAYS WE’RE STILL SHORT AND WILL BE SHORT INTO THE 2030S. SO HOW DID WE GET TO THE POINT WHERE NEW HAMPSHIRE HAS IS TRYING TO BUILD ENOUGH HOUSING TO MEET THE DEMAND, ESPECIALLY FOR YOUNG FAMILIES AND THE ELDERLY WHO ARE DOWNSIZING? YEAH, IT’S A GREAT QUESTION, AND THERE’S A LOT OF FACTORS, FRED, BUT I THINK TWO THAT I WOULD POINT TO IS FOR A LONG TIME WE’VE JUST RESTRICTED THE PRIVATE MARKET FROM MEETING DEMAND WITH EXCESSIVE REGULATION, ESPECIALLY AT THE LOCAL LEVEL. AND THE OTHER THING IS DEMOGRAPHICS. YOU KNOW, OUR POPULATION HAS NOT GROWN THAT MUCH, BUT WE HAVE SO MANY MORE HOUSEHOLDS BECAUSE THERE ARE SO MANY MORE HOUSEHOLDS OF 1 OR 2 PEOPLE WHO ARE LIVING BY THEMSELVES. SO THERE’S SOME ENCOURAGING NEWS IN THAT REPORT, BUT I THINK IT’S IMPORTANT TO KEEP IT IN CONTEXT. THOSE ARE PERMITS, NOT COMPLETIONS. AND IT LAGS BY A FEW YEARS. AND SO WE KNOW THAT WHAT HAS HAPPENED WITH SOME OF THOSE PROJECTS IS THAT THEY GOT PERMITTED. AND THEN AS COSTS AND RATES INCREASED, THEY DIDN’T NECESSARILY PENCIL OUT OR BREAK GROUND. WHAT HAS TO BE DONE IN YOUR AGENCY? NEW HAMPSHIRE HOUSING IN THE LEGISLATURE BY DEVELOPERS. WHAT HAS TO BE DONE TO BUILD MORE AFFORDABLE HOUSING? THE WORD AFFORDABLE IS KEY THESE DAYS. AS YOU KNOW, WHAT HAS TO BE DONE. YEAH, I MEAN, INVESTMENTS, PUBLIC PRIVATE PARTNERSHIPS AND INVESTMENTS ARE ESSENTIAL THINGS LIKE THE STATE AFFORDABLE HOUSING FUND THAT ALLOW US TO USE FEDERAL TAX CREDITS AND OTHER RESOURCES TO CREATE HOUSING THAT IS TRULY AFFORDABLE. THAT STUFF IS ESSENTIAL. BUT HOUSING AFFORDABILITY IS REALLY A BIGGER PICTURE. IT INVOLVES A LOT OF HOUSING THAT’S CREATED BY THE PRIVATE MARKET WITHOUT ANY PUBLIC SUBSIDY. IN ORDER FOR THAT TO HAPPEN, WE DO NEED LESS REGULATION, LESS EXCLUSIONARY ZONING REGULATION AND ZONING. YES, IS AN ISSUE. ABSOLUTELY. YEAH. THE LEGISLATURE THIS SESSION, THEY HAVE SOME BILLS IN. I’M JUST GOING TO LOOK AT MY LIST HERE. THEY HAVE A BILL THAT WOULD TIGHTEN EVICTION RULES. ANOTHER BILL TO RESTRICT ACCESSORY DWELLING UNITS, WHICH WAS ALREADY APPROVED BY LEGISLATURE. IS THERE ANYTHING POSITIVE ON HOUSING THIS SESSION? YEAH, THERE’S A GOOD BILL THAT WOULD MAKE IT EASIER FOR THE STATE TO TRANSFER SURPLUS SURPLUS LAND FOR THE PURPOSES OF BUILDING AFFORDABLE HOUSING. THERE ARE SOME GOOD CONVERSATIONS HAPPENING. BUT THOSE REPEAL BILLS, SOME OF THOSE BILLS THAT WOULD ROLL BACK SOME OF THE GOOD PROGRESS THAT’S BEEN MADE IN THE LAST FEW YEARS THAT, FRANKLY, A LITTLE BIT SURPRISING AND CONFUSING. YEAH. LET ME JUST MAKE A NOTE AND YOU CAN COMMENT ON NEW HAMPSHIRE HOUSING HAS A HOMEOWNERSHIP CONFERENCE IN CONCORD ON MARCH 18TH IN THE MORNING AT THE CONFERENCE CENTER FROM 8 TO 1230. WHAT ARE YOU GOING TO FOCUS ON REAL QUICK? HOMEOWNERSHIP AFFORDABILITY? WE’RE GOING TO HAVE FORMER HUD DEPUTY SECRETARY PAM PATENAUDE, WHO’S A NEW HAMPSHIRE NATIVE, SPEAKING, AND IT’S GOING TO BE A GREAT EVENT. SO ROB PAPPAS, EXECUTIVE DIRECTOR AND CEO OF NEW HAMPSHIRE HOUSING, THANK YOU. THANK YOU, FRED, AND IF YOU MISSED PART OF THIS BRIEFING ON HOUSIN