New Hampshire will need to build 90,000 new units over the next two decades to meet growing demands for housing in the state, a recent analysis shows.

The analytical tool — a fiscal housing calculator — created by the New Hampshire Department of Business and Economic Affairs offers a high-level look at how much burden taxpayers will need to foot for this development.

“The Fiscal Housing Calculator is not a housing needs assessment, but rather a way for municipalities to weigh the impact of the development of different kinds of housing on their respective budgets,” said Lorna Colquhoun, communications deputy director at the NH BEA. “This is the only resource that looks at the fiscal impact of various kinds of housing on municipal budgets.”

The BEA commissioned a Philadelphia-based consultancy, ESI-Econsult Solutions Inc. (ESI), to develop the tool, which provides data on the fiscal impact of housing development on taxpayers through 2040.

“ESI was selected following the contract procurement process, which determined it had the technical capability, availability, the best proposal to meet the project objectives, and one of the lowest bids,” the BEA said.

While the whole country is experiencing a housing crisis, the problem is particularly acute in New Hampshire, where the rental vacancy rate is almost 5%, and the owner vacancy rate is almost 2%, according to the 2023 New Hampshire Statewide Housing Needs Assessment Report. According to the report, the Granite State needs to build 60,000 units by 2030 to meet current requirements. Experts also call the acute shortage of adequate units a human rights issue.

“It’s depressing to acknowledge something as basic as living in a home is hard to access. The market has become so hostile that if you are anywhere from slightly above area median income to extremely low income, you’re going to struggle in this market,” said Elissa Margolin, director of Housing Action NH, previously said.

In Manchester, where the population is almost 115,420, the city needs an additional 8,738 units by 2040 to meet growing needs, as per the housing calculator.

The current housing stock in Manchester is 49,550. Meanwhile in Nashua — with a median income of $92,460 — the number of estimated units needed by 2040 is 6,272 more than the current stock of 36,910 for the city’s 91,130 residents.

“I moved to New Hampshire from the Midwest thinking that it would be cheaper, given how rural New Hampshire is,” said Christopher Knapp, a Manchester resident.

Housing in Manchester is dire, with rents continuously rising and the city making up an average of 20% of the evictions in the state according to a 2023 NH Housing report. In addition, there is no statute that puts restrictions on rent increases, making it possible in certain situations for landlords to raise rent even before a lease ends.

“I hear from neighbors who’ve lived in New Hampshire long enough, and they tell me that rent for the same two-bed I live in was almost $1,000 cheaper a few years ago. How are people my age supposed to save up to buy a house?” Knapp, 29, said.

What’s more, with the housing crisis are zoning ordinances that prevent more housing units from coming into towns. Last year, Republicans argued against the expansion of accessory dwelling units in the state saying it could lower property prices, killing a major legislation along party lines.

“I believe the state has begun to take some steps to reform housing availability, passing new allowances on accessory dwelling units,” said Thomas Fougere, an engineer from Londonderry in his 20s. “But a big part of the issue is local municipalities. Strict zoning ordinances prevent building in towns adjacent to large populated areas.”

Beyond just skyrocketing prices, younger folks in New Hampshire are worried about finding enough options, due to lack of adequate housing units.

“Trying to find a place has been a real pain,” said Ashlee, 29, a Manchester resident, who is looking to move into a cheaper rental unit from her nearly $3,000, 3-bed unit she shares with two other roommates.

Much like Knapp, Ashlee too feels like she’s not getting enough for her buck in Manchester.

“Most of these apartments are too expensive and don’t include any utilities, and many of these apartments we see are not actually 3 bedrooms,” she said. “They’re two bedrooms and a spare room that’s not actually a bedroom at all.”

This year, the housing committee is considering newer legislations — all three of which have bipartisan support. One would push for the development of more ADUs in the state (House Bill 577), another would prevent towns from imposing minimum lot sizes (HB 459), and the last would allow the development of residential housing in commercial zones (House Bill 631).

This article is being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.