housing market

Advocates for housing in both parties have hailed the new changes that loosened some restrictions on new development, pointing to climbing home prices and low rental vacancy rates. But as the new laws take effect, opponents of the state-led measures are predicting a backlash.

Researchers say high expenses could lead to population and economic shrinkage.

Realtor.com ranks Manchester one of the hottest housing markets in the country, but it also notes that New Hampshire is overall one of the least affordable states for housing.

The $4.2 million sale of a five-bedroom, nine-bathroom Rye residence led 25 houses that sold for at least $1 million, a new September record. Home inventory on the New Hampshire Seacoast is at a five-year high.

Experts point to a lack of turnover and available homes for sale as the main driver behind rising prices.

Lawmakers rallied around legislation that limits local restrictions on accessory dwelling units, parking, and residential development in commercial areas.

Multifamily housing development has been a post-pandemic boon for downtown Manchester, New Hampshire, and interest in luxury apartments has also grown.

The last time the market was considered balanced — when the number of homes for sale roughly matched the number of buyers — was back in October 2016.

Currently, tenants in most apartments in New Hampshire can’t legally be evicted, even at the end of their lease, without a good cause such as failure to pay rent, damaging the property, endangering others or not meeting rental terms. That will change under the new NH state law.

Some of the new laws address accessory dwelling units, mixed-use developments and permitting for new construction.