In a recent meeting of the New Hampshire House Ways and Means Committee, lawmakers confronted the pressing issue of skyrocketing housing costs that have left many residents struggling to afford homes. The discussion revealed alarming statistics: monthly payments on starter homes in New Hampshire have surged by 164% since 2019, with the typical payment now reaching an astonishing $2,610. This figure assumes a 10% down payment and highlights the growing financial strain on families, as an income of nearly $104,000 is required to consider such payments affordable.

The committee's analysis pointed to a significant supply and demand imbalance as the root cause of these rising costs. With the average home price in New Hampshire now around $563,000 and average interest rates hovering just below 7%, the housing market is increasingly out of reach for many. The average property tax exceeds $7,000, and homeowners also face insurance costs of about $1,000 annually, further complicating affordability.

A critical factor in this crisis is the drastic decrease in new housing construction. Since the peak of over 9,000 units built in 2005, the number of new homes has dwindled, with only a few thousand being constructed in recent years. This decline is attributed to various factors, including the aftermath of the Great Recession, which saw a significant loss of jobs in the construction industry and a shift in mortgage lending practices that tightened access to home loans.

Committee members expressed concern over the implications of these trends, particularly for lower-income families. With only 28% of New Hampshire employees earning more than $150,000, the majority of residents find themselves priced out of the market. The discussion also touched on the impact of neighboring Massachusetts, where higher salaries have led to a more stable housing market, contrasting sharply with New Hampshire's challenges.

As the committee deliberated on potential solutions, the need for increased housing supply emerged as a key focus. Lawmakers acknowledged that without addressing the underlying issues of construction and affordability, many families would continue to face the daunting prospect of being unable to secure stable housing in their communities. The meeting underscored a growing urgency to find effective strategies to combat the housing crisis, ensuring that New Hampshire remains a viable place for families to live and thrive.