The New Hampshire House Ways and Means Committee convened on January 14, 2025, to discuss pressing economic issues affecting families in the state, particularly focusing on the rising cost of living, housing, and childcare expenses.

The meeting began with a presentation highlighting the Massachusetts Institute of Technology's living wage calculator, which estimates that a family of three—comprising two working adults and one child—requires nearly $98,000 annually to meet basic living expenses as of 2024. The committee noted that housing and childcare alone account for nearly one-third of household budgets across New Hampshire, with significant variations in costs depending on the region. For instance, housing costs in Rockingham County can reach approximately $105,000, while in Coos County, they drop to around $80,000.

Further discussions revealed that the overall cost of living encompasses not only housing and childcare but also transportation, medical expenses, food, internet, and civic activities. However, the estimates do not account for student loan debt, credit card debt, or emergency expenses, which can further strain household budgets.

The committee also examined data from the Economic Policy Institute, which corroborated the findings regarding the high costs of housing, childcare, and transportation. Notably, the median price for purchasing a single-family home in New Hampshire surged to a record high of $540,000 by June 2024, marking a 71% increase since June 2019. This trend reflects a broader issue where housing costs have escalated at a rate significantly outpacing wage growth—housing prices increased by 113% compared to a 41% rise in average hourly wages during the same period.

The committee highlighted that the median monthly rent for a two-bedroom unit, including utilities, reached approximately $1,800 in 2024, a 36% increase since 2019. The lack of housing inventory, with vacancy rates consistently falling below the 5% threshold considered balanced, has exacerbated the situation, particularly impacting renters who often earn significantly less than homeowners.

Childcare costs were also a focal point, with the average expense for center-based care for an infant and a four-year-old nearing $32,000 in 2023. This financial burden is compounded by the fact that over half of renters in the state are classified as cost-burdened, spending more than 30% of their income on housing.

The committee concluded with a discussion on poverty rates in New Hampshire, noting that while the overall poverty rate remains around 7%, poverty among older adults has been increasing since 2019. The supplemental poverty measure, which accounts for regional cost differences, indicated that child poverty rates had been halved from 2019 to 2021, providing a more nuanced understanding of economic challenges faced by families in the Granite State.

The meeting underscored the urgent need for policy interventions to address the rising costs of living, housing, and childcare, which are critical to improving the economic stability of New Hampshire families.