New Hampshire's housing market faces increasing pressure as demand surges, driven by an influx of residents from neighboring Massachusetts. During a recent meeting of the House Ways and Means Committee, state officials discussed the challenges posed by rising housing prices and the factors contributing to this trend.

One key point raised was the impact of federal investment—or the lack thereof—in infrastructure. Historically, significant federal funding in the 1970s helped build essential water and sewer facilities, enabling higher-density housing development. However, such investment has not been seen in recent decades, which has contributed to current housing shortages and escalating costs.

State officials acknowledged that while they do not control interest rates, which affect housing affordability, they have implemented state aid grants through the Department of Environmental Services (DES). These grants, traditionally funded at $10 to $15 million annually, are aimed at maintaining existing water infrastructure rather than expanding it to accommodate new developments.

The discussion highlighted the urgent need for both state and federal action to address the growing demand for housing in New Hampshire. As more people seek to relocate to the state, the pressure on housing availability and prices is expected to continue, underscoring the importance of strategic investments in infrastructure to support future growth.