A Jarring Reality: Homelessness Amidst Affluence

Driving through downtown Laconia yesterday, I encountered a sight that left a troubling impression—two individuals, clearly homeless, curled up on a park bench. The contrast between their plight and the surrounding prosperity was jarring. Here in Laconia, a town increasingly recognized for its affluent second homeowners with their power boats on pristine waters, the harsh reality is that some have no roof over their heads. As a Realtor with over 23 years of experience, I am deeply passionate about my industry. I am dedicated to helping people find their dream homes—whether they’re multimillionaires or veterans relying on a VA loan. But the tools designed to assist those who’ve served our country are becoming less appealing to sellers who now lean toward cash offers. This is a stark reminder of just how broken our housing market is.

A Statewide Crisis: Homelessness and Housing

This issue extends beyond Laconia. Homelessness is a crisis spreading across New Hampshire, from the southern regions near Boston to the picturesque Lakes Region and the towering White Mountains. The housing market is in disarray, affecting everyone from the homeless to first-time homebuyers and long-time residents.

Laconia: A Microcosm of Gentrification

Laconia, once a bustling mill town and railroad hub, is now experiencing gentrification. The town is transforming from a community of working-class families into a playground for the affluent. Events like Bike Week still draw crowds, but the true allure of the region lies in its pristine lakes, sandy shores, and breathtaking vistas—attracting individuals seeking luxury second homes, often purchased with cash.

Property values in Laconia and the surrounding Lakes Region are soaring. Case in point: a damp, outdated boathouse on Lake Winnipesaukee recently hit the market for $700,000! This is just one glaring example of how out of control the real estate market has become in this area.

Beyond the Lakes: The White Mountains and the Southern Region

The White Mountains, known for their proximity to popular ski areas, are seeing property values double in just a couple of years. What was once a haven for middle-class families and retirees is now increasingly out of reach for anyone without significant wealth.

In the southern part of the state, where proximity to Boston makes it desirable, the competition for homes is fierce. The result? A wave of cash buyers, often from wealthier urban areas, purchasing homes outright with cash.

The Cash Buyer Conundrum: Changing the Landscape

The surge of cash buyers is transforming New Hampshire’s real estate market in ways that are hard to ignore. Sellers prefer cash offers because they close faster and come with fewer contingencies, making it increasingly difficult for traditional buyers—especially those relying on VA or FHA loans—to compete. This trend affects not just high-end properties but also modest homes, driving up prices across the board.

But where’s all this cash coming from? Some of it flows from wealthier urban areas where buyers sell high and purchase lower. Others come from institutional investors like Real Estate Investment Trusts (REITs) or foreign investments. If you’re curious about the sources of this influx of cash and the challenges it presents to traditional buyers, be sure to check out my article, “Where Is All the Cash Coming From?”.

The Ripple Effect: Homelessness on the Rise

The gentrification of areas like the Lakes Region and the White Mountains, combined with the dominance of cash buyers, is pushing New Hampshire’s housing crisis to a breaking point. As property values skyrocket, affordable housing is disappearing, pushing more people to the margins. Homelessness is no longer just an issue for the most vulnerable; it’s becoming a harsh reality for young families, retirees, and even those who once considered themselves comfortably middle-class.

The Struggle for Affordable Housing

The struggle for affordable housing in New Hampshire is real. As property values continue to rise, the availability of affordable housing dwindles. For many, the dream of homeownership is slipping away, and even renters are feeling the squeeze as rental prices skyrocket.

What Can Be Done? The Path Forward

Increasing Affordable Housing: We need to incentivize the construction of affordable housing and preserve existing affordable units. Developers should focus on building more accessible homes, not just luxury properties.

Addressing Homelessness: Tackling homelessness requires addressing root causes such as mental health, job training, and addiction support.

Regulating Gentrification: While progress and investment are necessary, we must ensure communities remain inclusive and accessible to all. Policies that protect affordable housing, support local businesses, and preserve community ties are essential.

A Moral Imperative

This isn’t just about economics—it’s about people. It’s about ensuring that New Hampshire remains a place where everyone, regardless of income, has a chance to thrive. By taking a proactive, compassionate approach to housing, we can address the root causes of homelessness, make housing more affordable, and ensure that New Hampshire remains the welcoming, inclusive place it has always been.