By Vanessa L. Saunders MBA. MIMC
Associate Broker
Keeler Family Realty 


Nestled amidst serene waters and lush landscapes, New Hampshire's Lakes Region is a gem cherished by residents and tourists alike. However, the region faces a significant challenge: a growing housing affordability crisis. As more people are drawn to its natural beauty and idyllic lifestyle, the imbalance between housing supply and demand has become increasingly pronounced. This blog delves into the root causes of this issue, explores potential solutions, and underscores the urgency of addressing the housing crisis to maintain the region's charm and inclusivity.

The Problem: An Imbalance in Supply and Demand

In New Hampshire's Lakes Region, housing affordability is becoming a pressing issue. The demand for homes, driven by wage growth and an influx of new residents, has far outstripped the supply of available housing. This mismatch has led to soaring home prices and rents, making it difficult for locals, especially those in service industries, to find affordable housing.

Consider the housing markets of Laconia, Concord, and Manchester as local examples. These cities have experienced significant population growth in recent years, driven by their appeal as both residential and commercial hubs. However, the rate at which new housing units are being added has not kept pace with this growth. In Laconia, for instance, the influx of new residents has led to a noticeable increase in home prices and rents, outstripping the growth in available housing.

From 2012 to 2019, Laconia saw a population increase of approximately 15%, but the addition of new housing units lagged behind at about 10%. Similarly, Concord and Manchester have faced similar trends, with population growth rates of 18% and 20%, respectively, but housing stock increases of only 12% and 14%. This imbalance has resulted in significant home price appreciation, making it harder for long-time residents and new arrivals alike to find affordable housing.

The Urgency: Consequences of Ignoring Housing Needs

Many communities, including those in the Lakes Region, focus on attracting high-paying jobs without concurrently expanding housing options. This oversight leads to rising home prices and rents, increasing the risk of displacement for essential service workers. To keep home prices in check, a region must grow its housing stock in proportion to its wage base growth—whether through increasing wages or adding new workers.

The Lakes Region, renowned for its scenic beauty and recreational opportunities, has seen a surge in popularity. However, the housing market has struggled to keep pace with this demand, resulting in a severe shortage of affordable homes. Addressing this issue is crucial for sustaining the region's vibrancy and ensuring that all residents, regardless of income, can find suitable housing.

The Solution: Embracing Light-Touch Density (LTD)

A promising solution to the Lakes Region's housing crisis is Light-Touch Density (LTD). This approach moderately increases housing density by allowing more than just single-family detached homes on a parcel. Instead, LTD enables the development of duplexes, triplexes, townhouses, accessory dwelling units (ADUs), and more. This strategy makes more efficient use of land, providing naturally affordable housing without the need for subsidies.

What is LTD?

LTD involves increasing the density of housing in a manner compatible with the existing neighborhood scale. For instance, instead of only single-family homes, a parcel could accommodate a duplex, a triplex, or a small cluster of townhouses. In high-cost areas, this might mean replacing an existing single-family home with a multi-unit dwelling. In medium-cost areas, it could involve adding an ADU or a second unit to an existing lot. Everywhere, it means increasing the density of new developments by adding more floors or reducing unit sizes.

How LTD Benefits the Lakes Region

1. Increased Supply: By allowing multiple units per parcel, LTD significantly boosts the housing supply, helping to stabilize home prices.
2. Cost Efficiency: Smaller lots and homes reduce land and construction costs, making housing more affordable.
3. Inclusivity: Naturally affordable units expand the middle segment of the housing market, making homeownership accessible to lower-income families through a process known as filtering.

In the Lakes Region, implementing LTD could mitigate the housing crisis by providing more affordable options, reducing displacement pressures, and fostering economic growth.

Challenges and Barriers to LTD

While LTD offers a promising solution, several barriers must be overcome to implement it effectively.

Regulatory Hurdles

Existing zoning laws often prohibit the types of developments that LTD promotes. These regulations need to be revised to allow for more diverse housing options. Additionally, building codes must be simplified to avoid unnecessary obstacles for small-scale builders.

Community Resistance

Homeowners concerned about neighborhood changes may resist LTD. However, evidence shows that LTD can be introduced gradually, maintaining the character of neighborhoods while providing much-needed housing. In areas like Seattle, for example, home values have appreciated in line with the rest of the city despite LTD development.

Keys to Successful Implementation of LTD

For LTD to succeed in the Lakes Region, several steps must be taken:

1. By-Right Approval: Ensure that LTD housing can be approved without lengthy hearings.
2. Simple Rules: Implement straightforward rules regarding the number of units, floor-area ratio, and height restrictions.
3. Easy Processing and Permitting: Streamline the permitting process to make it accessible for small-scale builders.

Additional Supportive Measures

• Relaxed Parking Requirements: Reducing parking mandates can lower construction costs and make LTD more feasible.
• Shot Clocks: Instituting timelines for permit approvals can create more predictable schedules for builders.
• Preapproved Design Standards: Providing design templates can expedite the approval process and ensure compatibility with neighborhood aesthetics.

The Potential of LTD in the Lakes Region

Across the United States, LTD has the potential to add up to 900,000 net additional homes per year over the next 30-40 years. For the Lakes Region, embracing LTD could mean a steady increase in affordable housing, benefiting both the local economy and community members.

Building a Winning Coalition for LTD

To successfully implement LTD, it’s essential to build a broad coalition of supporters. LTD appeals to various constituents, including:

• Environmentalists: Less sprawl and more energy-efficient homes.
• Progressives: Redressing exclusionary zoning practices.
• Fiscal Conservatives: Private sector-driven development and property rights.
• Local Businesses: A larger customer base.
• Municipalities: Increased tax revenues and economic development.
• Service Workers: More affordable housing options.

Surveys indicate that framing the argument around enabling young families to afford homes and driving economic growth can garner significant support.

Conclusion: Embracing a Sustainable Future

The housing crisis in New Hampshire's Lakes Region requires immediate attention and innovative solutions. Light-Touch Density offers a promising path forward, balancing the need for more housing with the desire to maintain community character. By revising zoning laws, simplifying building codes, and fostering a collaborative approach, the Lakes Region can address its housing challenges and ensure a sustainable, inclusive future for all residents.

The housing crisis in New Hampshire's Lakes Region is a critical issue that impacts everyone. It's essential that we come together as a community to explore solutions like Light-Touch Density and work towards creating a more affordable and inclusive region. If you have any questions, concerns, or ideas about how we can address this housing challenge, I’m here to help.

Don't hesitate to reach out to me directly. Whether you're a homeowner, a potential buyer, a builder, or just someone who cares about the future of our community, I would love to hear from you. Let's discuss how we can make the Lakes Region a better place for everyone.

Call me directly at 845-598-5083 or email me at vanessa@TradeNHomes.com.
Together, we can make a difference.