New Hampshire Housing Needs

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New Hampshire Housing Needs
Spring 2007 Update
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312,500
250,000
240,000
192,118
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Based on information from the Northern New
England Real Estate Network.
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Price Pressure
Buyers Market
Sellers Market
April 06 Median Price 241,950
April 06 Absorption Rate 6.7 months
Based on information from the Northern New
England Real Estate Network.
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Housing Affordability
Prices have outpaced household incomes
Sources Median Purchase Price - NHHFA Purchase
Price Database, Mortgage Interest Rates - Freddie
Mac Survey Income - HUD Statewide
Median Family Income for NH 2006 are
preliminary numbers
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2000 to 2006 Market Shift
Median Price in 2000 143,000
Median Price in 2006 250,000
Purchase prices have shifted away from the median
and low income renters. While the volume of
sales has decreased in 2006, the median price has
not yet decreased significantly.

• 2000
• Median Renter Income - 33,500
• Buys 93,000 unit
• Access to 19 of the market

• 2006
• Est. Median Renter Income - 34,300
• Buys 102,000 unit
• Access to 3.4 of the market

As prices will likely soften at the upper end of
the market, first time buyers will not benefit.
Their access to the market is extremely limited.
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Cumulative Foreclosures
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Ownership Market Issues

• Median price has increased 75 since 2000
• Sales volume is down compared to the previous 7
  years
• Listings have already reached an all-time high
• Absorption rate should lengthen and continue to
  induce lower prices
• Prices have not dropped precipitously and a
  softening of the market is unlikely to effect the
  starter home segment
• Affordability continues to be a significant
  problem for our workforce
• Renter incomes have not kept pace with the price
  of homes
• Affordable alternatives are limited to
  condominiums and manufactured housing
• Foreclosures have stabilized (although at a
  higher rate than in 2005)
• If credit tightens on a national level, interest
  rates will go up

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Rental Market
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1,029
946
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4.2
3.4
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Manchester HMFA
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Carroll County
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Cheshire County
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Nashua HMFA
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Rental Market Issues

• Gross rental costs are relatively flat
• Manchester market may be softening, but the
  sample has had some effect
• Nashua and Portsmouth markets not softening
• Renter Incomes not climbing
• Affordability still a problem
• In New England, NH has the highest number of very
  low income households per available affordable
  housing unit
• Conversion to condominiums limit the supply
  (approx. 3,500 since 2000)
• Preservation of the assisted stock is becoming a
  significant issue

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New Hampshire Subsidized Housing Profile

• 17,433 assisted rental units (12 of all rental
  units)
• 4,355 are Public Housing units
• 8,835 vouchers (some used in assisted rental
  units)
• 67 of Public Housing is designated as elderly
• 28 of the elderly designated units are occupied
  by non-elderly persons with a disability
• Waiting list for all Public Housing 23 elderly,
  16 non-elderly disabled, and 62 family
• 40 of Voucher holders are non-elderly persons
  with a disability
• Only 24.8 are elderly and 35.3 are families
• Waiting list for all vouchers programs 20
  elderly, 9.7 non-elderly disabled, and 69.8
  family

Does not include some Nashua HA data.
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