Vacancy rates for rental units rose in New Hampshire for the first time in at least a decade, but so have rents, according to a survey distributed in the middle of the pandemic by the New Hampshire Housing Finance Authority.
The vacancy rate more than doubled to 1.85%, compared to last year, but it was so low to begin with (0.8%) that it is still far below more normal rates of 5.5% for the Northeast and 6.6% in the United States, according to the annual survey of 21,000 units taken from March to May.
It is unclear whether the figures reflect the impact of the pandemic on incomes.
“There is the possibility that some units turned over less rapidly because of concerns about Covid-19 or that some households might have consolidated into one in order to save on expenses, but we have no way of knowing or measuring this,” said the NHHFA in response to a NH Business Review inquiry.
Many tenants have lost their jobs during that period, but many low-income workers also have gotten enhanced unemployment benefits that may have exceeded their previous income. In addition, the state banned evictions starting in mid-March until July 1, so it was in effect for most of the time the questioning took place.
Since the survey, Gov. Chris Sununu has lengthened the time it takes to evict a tenant, so the first evictions can’t really start until August, and he has allocated $35 million of CARES Act funds for back rent.
In any case, median rents in the state, including utilities, went up on a two-bedroom apartment by 4.9%, to $1,413, about the same rate as usual, and much higher than the rate of increase for income and most other consumer prices. (The increase on all apartments has slowed slightly, rising by 2%, to $1,283. One bedrooms went for nearly $1,100.)
That’s more than what many renters can afford to pay based on their income, which has been going down for renters, while going up for homeowners, over the last three years. The median income for renters — based on census data — is $45,000, meaning their affordable two-bedroom would be about $1,127. — BOB SANDERS
