Yesterday’s 2025 Homeownership Conference provided a sobering look at New Hampshire’s housing market, highlighting critical issues affecting homebuyers, sellers, and the broader economy. With rising costs, inventory shortages, and evolving policies, it’s clear that we are at a turning point. Here’s what the public needs to know.

Housing Affordability: A Growing Concern

According to Rob Dapice, CEO of New Hampshire Housing, the state is facing a severe housing shortage. The average price of a single-family home now exceeds $500,000, making homeownership increasingly out of reach for many residents. Meanwhile, rental prices continue to rise, with the median two-bedroom apartment now costing $1,833 per month—and only 13% of rental units considered affordable for the median renter.

This affordability crisis is not just a concern for those looking to buy or rent—it affects workforce retention, economic growth, and even local businesses struggling to attract employees who simply can’t afford to live nearby.

Key Takeaway: Without significant changes in housing policy and development, the affordability gap will continue to widen, pushing middle-income families out of the market.

Where Are the Homes? The Inventory Crisis

New Hampshire's housing market is suffering from a severe lack of inventory. Bob Quinn, CEO of the New Hampshire Association of REALTORS, emphasized that while inventory levels have increased 49% year-over-year, demand still vastly outpaces supply.

Several key factors are driving this crisis:

• Slow housing production – Permits for new home construction remain 36% below what’s needed to meet demand.
• Zoning restrictions – Many towns still enforce outdated zoning laws that limit multi-family housing and require large minimum lot sizes, making it difficult to build more affordable housing options.
• High interest rates – Although expected to decrease slightly in 2025, higher borrowing costs continue to discourage both buyers and builders.

Key Takeaway: New Hampshire needs a significant policy shift to allow for more housing development, particularly multi-family and workforce housing, to address the ongoing inventory crunch.

AI in Real Estate: A Double-Edged Sword?

Technology and AI-driven tools are rapidly changing the real estate industry, but not without controversy. Attorney Brian Bouchard of Sheehan Phinney warned about the risks of algorithmic bias in lending and property evaluations, noting that some AI models have shown discriminatory tendencies in mortgage approvals.

At the same time, AI is improving market analysis, pricing strategies, and customer experiences, giving real estate professionals better tools to assess home values and buyer behavior. But with privacy concerns and ethical challenges, regulators are watching closely.

Key Takeaway: AI is here to stay in real estate, but consumers and professionals alike must be cautious about automated decision-making and push for transparency in how AI models are used in home valuations and mortgage lending.

Economic Forecast: Where Are Interest Rates Heading?

Joel Kan, Deputy Chief Economist of the Mortgage Bankers Association, provided an outlook on mortgage rates, predicting a modest decline in 2025. However, he cautioned that rates are unlikely to return to the historically low levels seen in 2020-2021.

With home prices still rising, the real issue isn’t just rates—it’s whether wages can keep up. Household financial strain is increasing, and while home price appreciation is slowing, affordability remains a challenge.

Key Takeaway: Buyers should expect gradual improvements in borrowing costs, but competition for available homes will keep prices high.

Housing Innovation: The Future of Homebuilding

Three industry leaders presented innovative solutions to New Hampshire’s housing challenges:

• Eric Jackson (The Stabile Companies) showcased new housing developments designed to meet the needs of middle-income buyers.
• Robert Baldwin (Central Falls Realty) emphasized the benefits of increasing housing density, demonstrating that well-designed multi-unit housing can blend seamlessly into communities.
• Eric Laplante (Summit 48 Construction) discussed his company’s partnership with Huot Technical Center, where high school students are trained in skilled trades while building modular homes, a potential game-changer in addressing labor shortages in the construction industry.

Key Takeaway: The future of New Hampshire’s housing market depends on modernizing zoning laws, investing in workforce housing, and embracing innovative construction methods to build homes faster and more efficiently.

What Comes Next?

New Hampshire has an opportunity—but also an urgent need—to change course.

• Local and state governments must revise zoning laws to allow for more flexible housing solutions.
• Developers need incentives to build workforce and multi-family housing.
• Buyers and sellers must stay informed about market trends and economic shifts to make strategic decisions.

As someone deeply involved in real estate, I see both the challenges and opportunities ahead. The public deserves accurate, transparent information on what’s happening in the housing market, and I’ll continue to provide that insight. If you're considering buying, selling, or investing in New Hampshire real estate, now is the time to be strategic—and I’m here to help you navigate the path forward.

Strategic Homeownership: ADUs, Solar, and Energy Efficiency

For homeowners looking to add value to their properties or create additional income streams, Accessory Dwelling Units (ADUs) are a viable solution. New Hampshire has expanded ADU regulations, allowing homeowners to build attached or detached rental units on their property, providing much-needed rental inventory while offsetting mortgage costs.

Additionally, solar energy is becoming a major financial advantage for homeowners. Programs like the HOPER Program (Homeowner Opportunity Program for Energy Resilience) can help reduce costs, increase home value, and make properties more attractive to buyers looking for long-term savings on energy bills.

Read more about the HOPER Program here.

Key Takeaway: Smart homeowners should explore ADUs and solar installations as ways to increase property value, generate income, and reduce long-term costs.

What Comes Next?

New Hampshire's housing market is evolving, and the next few years will be critical in shaping its future.

• Policy updates and zoning reforms will determine how quickly new housing can be built.
• Buyers and sellers must stay informed about market trends and economic shifts to make strategic decisions.
• Homeowners should explore opportunities to add value through ADUs and solar energy initiatives.

The public deserves clear, transparent information about real estate trends, housing policies, and financial opportunities. As an industry expert, I will continue to provide insights that empower homebuyers, sellers, and investors to navigate the market effectively.

If you're considering buying, selling, or investing in New Hampshire real estate, now is the time to be strategic—and I’m here to help.