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16% of New Hampshire Residents Have Abandoned Home-Buying Dreams Over Five Years

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  //house-home.news-articles.net/content/2025/11/2 .. bandoned-home-buying-dreams-over-five-years.html
  Published in House and Home on Thursday, November 27th 2025 at 21:11 GMT by New Hampshire Union Leader

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One‑in‑Six New Hampshire Home‑Buying Aspirants Have Gave Up Over the Past Five Years, a New Survey Finds

A recent survey distributed by the New Hampshire Housing and Planning Commission has revealed a troubling trend: about 16 % of people who once dreamed of owning a home in the Granite State have abandoned those plans altogether in the last half‑decade. The data, released in late August, were gathered through a combination of online questionnaires and in‑person interviews with a representative cross‑section of the state’s population—from suburban commuters to rural retirees. The results paint a stark picture of a market that has grown increasingly hard‑to‑enter for ordinary New Hampshireers.

The Numbers Behind the Headlines

The survey, which sampled 3,200 respondents across all ten counties of the state, was compiled using the NH Housing and Planning Commission’s proprietary database and cross‑verified against the U.S. Census Bureau’s American Community Survey. According to the commission’s own data sheet (link embedded in the original article), the average purchase price for a single‑family home in New Hampshire rose by 18 % between 2018 and 2023, reaching a median of $360,000—up from $295,000 five years earlier. Meanwhile, mortgage interest rates, which hovered near 2 % during the first part of that period, have since spiked to just under 6 % as the Federal Reserve tightens its monetary policy.

The survey also asked participants to report why they chose to abandon their home‑ownership aspirations. The top three reasons—accounting for roughly 70 % of the responses—were:

1. Affordability constraints (price out of reach)
2. Rising mortgage rates (cost of borrowing too high)
3. Lack of inventory (homes no longer available or too few to choose from)

When broken down by age group, the survey found that first‑time buyers under 35 were twice as likely to give up than older buyers. Many of these younger respondents cited job instability in the technology and service sectors as a major factor: “I can’t afford a big mortgage when my job is not guaranteed for the long term,” said a 29‑year‑old software engineer in Manchester. In contrast, those aged 55 and older were more likely to say that they had simply shifted their focus to downsizing or relocating to assisted‑living facilities.

Contextualizing the Findings

The report’s release follows a broader national conversation about the housing‑affordability crisis that has been exacerbated by the pandemic, supply‑chain disruptions, and an increasingly uneven labor market. The National Association of Realtors (NAR), for example, has warned that the U.S. will see a 10 % decline in new home sales if mortgage rates remain above 6 % for a sustained period—an outcome that would mirror New Hampshire’s own downward pressure on first‑time buyers.

In a supporting link to the NAR’s 2023 Market Outlook, the article noted that the commission’s findings are consistent with the U.S. Census Bureau’s 2023 “Housing Market Affordability” report, which identified that “affordability gaps have widened to the largest levels in 30 years.” The Census data also show that the average household income in New Hampshire grew by only 4 % over the same period, lagging behind the 9 % increase in median home prices.

The commission’s report also referenced the New Hampshire Department of Labor’s recent employment report (link to a PDF). That document highlighted a 2.3 % job growth rate for the state in 2023—slower than the national average of 3.1 %—and a notable increase in the share of workers in part‑time or gig‑economy roles. “If people can’t count on a steady paycheck, they’re understandably hesitant to take on a long‑term financial commitment like a mortgage,” an analyst from the department explained.

Voices from the Field

The article quotes several local experts on how the trend could reshape the housing market.

• John Martinez, a real‑estate broker at NH Home Advisors: “I’ve seen the inventory on the market stay stubbornly low, but it’s not just about supply. When the rates went up, people’s budgets tightened and many of them just walked away from the buying process.” Martinez points to a 2023 market study from Zillow (link embedded in the article) that shows a 30 % drop in listings in towns like Nashua and Keene.

• Dr. Emily O’Donnell, a senior researcher at the University of New Hampshire’s Center for Community & Economic Development: “The social fabric of the state is changing. We’re seeing more young adults postponing marriage and home‑buying. That could shift the demand curve toward rentals, and the state will need to rethink zoning and affordable‑housing initiatives.” O’Donnell references a 2022 NH housing policy briefing (PDF link) that outlines state‑level incentive programs for low‑to‑moderate income households.

• Karen Lee, a local community activist and founder of Home‑Hope NH: “We’re launching a down‑payment assistance program that offers a 2‑year interest‑free loan to first‑time buyers who have a 3 % down‑payment but cannot qualify for a traditional loan due to credit concerns. This is a direct response to the data the commission released.” Lee highlights a link to a state grant application page that was embedded in the original article.

Policy Implications & Possible Solutions

In response to the findings, the New Hampshire Housing and Planning Commission has outlined several policy recommendations:

1. Expand down‑payment assistance and first‑time buyer programs – the commission is collaborating with the New Hampshire Department of Housing and Planning to increase the funding pool for these initiatives.
2. Address supply constraints by loosening zoning restrictions – the state is reviewing its “Smart Growth” zoning guidelines to enable higher‑density housing in suburban corridors.
3. Encourage state‑backed mortgage guarantees – a proposal similar to California’s “First‑Time Home Buyer Credit” is under discussion. This would lower the risk for lenders and allow for lower interest rates for qualifying buyers.
4. Invest in workforce development – linking the state’s employment programs with housing affordability, the commission suggests targeted training for in‑state construction, real‑estate licensing, and financial‑literacy education.

The article also links to the New Hampshire Department of Labor’s “Employment and Housing Alignment Initiative”—an upcoming webinar that will discuss how job creation and housing affordability can move in tandem.

Looking Ahead

While the current data are alarming, experts warn that the trajectory could improve if federal monetary policy eases. However, as the article cautions, the window for affordable homeownership may be shrinking. The NH Housing and Planning Commission’s 2023–2024 forecast, released in a separate PDF (link in the article), projects that the number of “potential buyers who are currently off the market” could grow by another 4 % if mortgage rates stay above 6 % for the next two years.

In the meantime, local residents, policymakers, and community groups are turning to a mix of grassroots initiatives and state‑level programs to reverse the trend. By the end of the article, the writer underscores that while data paint a bleak picture, the story is still being written—and the next few years will determine whether New Hampshire can bring the dream of homeownership back to the people it promises.