AFFORDABLE HOUSING
Legislators recognize that the state needs more affordable housing to have a healthy economy. However, their bills to address the issue ignore major underlying causes.
House Bill 1291 would let homeowners add more accessory dwelling units.
Earlier attempts in that direction have failed. Young people might rent out an existing accessory unit to afford a mortgage, but build one? Instead, homeowners tend to forego the complications of a tenant as their earnings grow. On my block alone, there are six fewer accessory apartments than when I moved here.
The state actually has far more square footage of housing for its population than it would have needed 50 years ago. In 1970, houses averaged 500 square foot per resident; houses now average 1,000! Larger homes house smaller families, and an aging population stays longer in outsized spaces.
Sen. Rebecca Perkins Kwoka’s SB 538 “HOMEnibus Bill” addresses the housing shortage in three ways. It would let municipalities offer property tax relief to owners converting office space to residential. Municipalities could adopt “inclusionary zoning” districts. A set percentage of workforce or affordable housing would be required in such a district. The bill would also ease parking requirements that reduce the number of units built.
These steps could help. But legislators need to dig deeper to address the underlying problems that reduce the state’s talent pool. Good schools are one of the best ways to attract youth and families.
New Hampshire has the highest state university costs and college debt in the nation. The state has chosen again to fight the court’s increase in adequacy aid to K-12 education. It’s also fighting the court decision that would make housing more affordable in property-poor towns by equalizing SWEPT taxes across the state.
Being a tax-dodge for the wealthy only exacerbates the state’s housing problems. Demand for second homes has grown. Including cash sales, about half of Carroll County homes sold in 2021 were second homes. Across the state, at least one in 10 homes are second homes.
The governor and Legislature put even greater pressure on housing prices by repealing the interest and dividends tax. This was yet another carrot to encourage affluent urban dwellers to sell their homes and buy in New Hampshire.
These older, wealthier purchasers easily outbid younger hopefuls.
On top of all this demand is growth in vacation rentals. Marriott and other corporations realized that they could buy up recreational housing and profit from short-term rentals. Unfortunately, this can cause housing prices to spiral out of control. (The New Hampshire Municipal Association has extensive information about how municipalities can address short-term rental concerns.)
Regulations, tax policy and subsidies can help address NH’s housing problem. If we want a society with higher home ownership and more families, we also need to fund education, protect towns against corporate takeover, and tax the wealthy as well as everyone else.
Jeanne Dietsch is a former state senator for District 9 and is now the director of Granite State Matters.
