What's Happening?
New Hampshire is facing a significant challenge in its economic growth due to a shortage of affordable housing. A recent report by the state's Department of Business and Economic Affairs highlights that housing production reached a 20-year high in 2025,
yet the state remains short of its housing needs. The report indicates that between 2020 and 2025, New Hampshire needed 32,704 housing units to maintain a balanced market by 2040, but only 25,688 units were completed. This shortfall is impacting the ability of employers to recruit and retain workers, as the lack of housing options forces potential employees to seek opportunities elsewhere. The state has implemented programs like InvestNH and Housing Champions to address these issues, focusing on financing and regulatory reforms to boost housing development.
Why It's Important?
The housing shortage in New Hampshire is a critical issue as it directly affects the state's economic stability and growth. Without sufficient affordable housing, businesses struggle to attract and retain a workforce, which can lead to a slowdown in economic activities and growth. The state's initiatives, such as InvestNH, aim to accelerate housing development by investing in affordable housing projects and incentivizing local communities to support housing growth. These efforts are crucial in ensuring that New Hampshire can meet its housing needs and support its economic development goals. The success of these programs could serve as a model for other states facing similar challenges.
What's Next?
New Hampshire will continue to focus on its housing initiatives, with the InvestNH program expected to further accelerate housing development across the state. The Housing Champions program will also play a key role in encouraging communities to adopt housing-friendly policies. As these programs progress, the state will need to monitor their effectiveness and make adjustments as necessary to ensure that housing production meets the growing demand. The ongoing collaboration between state agencies, local governments, and private investors will be essential in addressing the housing shortage and supporting economic growth.
