10/24/25: Housing Matters Newsletter

Welcome to the Housing Matters Newsletter!

Over the last few weeks, municipal budgets have been all over the news. There have been changes to state and federal education funding, unanticipated healthcare costs, and increasing costs across the board over the last few years. It’s understandable to seek out explanations and explore recent changes that could impact local revenue and their property tax bill.

We were disappointed to read a recent quote from a municipal official casting some of the blame on newly constructed housing developments. We’re not here to name and shame – we’ll give the individual the benefit of the doubt that there was missing context or they were misinformed – but it’s a good time to remind decision makers that smart development grows the local tax base. It doesn’t drag municipal budgets down, it lifts them up.

In light of all those recent conversations, we have a longer newsletter introduction than normal today.

Let’s look at some New Hampshire data to further illustrate this point.

Homes are the foundation for local revenue. Property tax revenue is the backbone of our municipal budgets. In New Hampshire Housing’s recent From Homes to Classrooms study, the data shows that from 2014-2023 new housing construction generated a net fiscal benefit of $1,711 per home.

The per home data averages multi-family, single-family, and condos together, but we know that there are differences between single-family and multi-family homes. The same study found that when you look at revenue per acre, multi-family rentals and condos really show their value with multi-family rentals generating $7,026 in net value per acre compared to $533 in net value per acre for single family homes (condos generated $10,027 in net value per acre).

In 2020, Urban3 analyzed New Hampshire communities using the same value per acre metric (since communities have a finite amount of land to develop and generate revenue from) to better understand the relationship between municipal revenues and land use decisions. Urban3’s research demonstrated that New Hampshire municipalities generate their revenue from denser development in downtown corridors. Given that our tax system focuses on the assessed value of the development on the land – rather than the land value – high-value development such as multi-family or mixed-use development generates significantly more property tax revenue for a municipality than single-family or vacant land.

When you combine the high value per acre from mixed-use and multi-family development with the net value per home analysis from the From Homes to Classrooms study, you can see how development drives municipal revenue growth.

The image below shows Dover’s value per acre. The trends shown in this map are replicated in communities all throughout the state.

The school children myth. The net value per home figures outlined in the New Hampshire Housing’s From Homes to Classrooms study factors in the education costs, but let’s take a closer look into the figures. In New Hampshire, new construction generates, on average, .16 students per home. If a 100 home development were built in your community, you’d expect to see 16 new students in the district. Those new students would be distributed across multiple grades.

The student per home rates vary depending on the type of housing. Multi-family rentals only generate .06 students per home while single family homes generate .40 students per home.

In 2019, University of New Hampshire Economics Professor Richard England set out to answer the question “Will More Kids in Town Raise the Local Tax Rate?” His research found that there is no correlation between more kids and local property tax increases. This is because the vast majority of education costs are fixed costs (building, energy, salary, benefits, etc.), which do not materially change when additional kids are added to a school district. It’s possible fringe cases of extreme growth could impact the fixed costs; however, that is outside of New Hampshire’s existing or projected development patterns.

Affordable housing projects pay property taxes. When below-market-rate projects are proposed by non-profit developers, there is often the misperception that they do not pay property taxes. This is not true. In addition to the public good of providing housing to our vulnerable friends and neighbors, and key members of our workforce, affordable housing projects are assessed by local property assessors. They either enter into a payment in lieu of taxes agreement (RSA 72:23-n) with the municipality or pay property taxes like other properties in town. In the 2025 legislative session, SB 173 updated the assessment formula for Low Income Housing Tax Credit projects to add clarity and predictability to the assessment process.

As communities around New Hampshire make difficult budget decisions and plan for their future, it’s critical that policymakers understand what healthy communities need and the impact of their decisions. The data is clear: smart development creates vibrant communities and generates revenue, making it a true win-win.

You can read and share this full blog post on our website. 

If you were forwarded this newsletter and would like to receive future updates, you can sign up here.

Best,

Nick Taylor

Executive Director

Housing Action NH

nick@housingactionnh.org

NH Zoning Atlas Water and Sewer Data Layer

Discover how new statewide water and sewer data in the NH Zoning Atlas can transform housing and planning in New Hampshire. Join NH Business Review and the Initiative for Housing Policy and Practice for a webinar highlighting how this tool streamlines housing development, empowers local leaders, and guides economic growth. Nick Taylor, Director of Housing Action NH, will be a panelist during this discussion.

Date: Wednesday, October 29

Time: 11 am to Noon

Advocacy Survey Closes Today

Housing Action NH is partnering with the New Hampshire Charitable Foundation to better understand the state’s housing advocacy landscape. We’re inviting organizations, coalitions, and individuals engaged in housing, homelessness, and related issues to share their insights through a short survey. The goal is to highlight strengths, identify where additional coordination could help, and hear directly from advocates and providers. The findings will help shape future conversations about how to strengthen housing advocacy in New Hampshire and guide philanthropic partners toward the areas of greatest impact. Take the survey here. Today is the final day to fill out the survey.

Who Can Afford To Live In New Hampshire?

New Hampshire Housing’s new Who Can Afford To Live In New Hampshire? report offers a sobering look at the widening gap between housing costs and wages in the Granite State. The data show that the median home price—now $565,000—is affordable to just 15% of households. High-demand workers who are essential to our state’s economy like childcare providers, home health aides, and tradespeople, are increasingly priced out of their communities. The report connects these affordability challenges to workforce shortages, rising homelessness, and declining school enrollments—making the case that housing policy is central to the state’s economic and demographic future. You can read the full report here. 

A Decade Of Affordability Changes

A new analysis from the New Hampshire Fiscal Policy Institute shows how the cost of living in New Hampshire has vastly outpaced wages — leaving the typical four-person household with $17,349 less each year to cover key essentials than a decade ago. The cost of housing was a major driver of the overall affordability changes. You can read the full report here. 

Federal Road to Housing Update

Earlier this month, the United States Senate passed the bipartisan Renewing Opportunity in the American Dream to Housing Act of 2025 (ROAD to Housing Act) as part of the National Defense Authorization Act. Senator Tim Scott and Senator Elizabeth Warren co-authored this bipartisan proposal. You can read a comprehensive review of the Road to Housing bill here.

Upcoming Events

Over the next few weeks, we’ll be all over New Hampshire speaking at events and learning alongside many of you!

Tuesday, October 28: The Mount Washington Valley Housing Coalition’s (MWVHC) Annual State of Housing Breakfast is at the Fairbank Lodge at Cranmore Mountain Resort in North Conway, NH, from 8:00 am to 11:00 am. This year’s theme, “Zoning Changes Aren’t Enough: What Support Structures Are Working Elsewhere That We Can Recreate in the Mount Washington Valley?”, reflects our growing understanding that land-use reform, while essential, is only one piece of the affordable housing puzzle. This event will explore the innovative support structures and policies being implemented in other communities and how they can inspire and inform local solutions in the MWV. Nick Taylor, Director of Housing Action NH, will speak on recent legislative action. Register here.

Thursday, November 6: The 8th Annual Greater Seacoast Housing Summit, hosted in partnership by the Workforce Housing Coalition of the Greater Seacoast and the Seacoast Chamber Alliance, brings together business, municipal, and nonprofit leaders to explore this year’s theme: Employer-Sponsored Housing and the Business Community’s Role in Advancing Housing Solutions. Keynote speaker Phil Sletten, Research Director at the New Hampshire Fiscal Policy Institute, will examine the relationship between housing and the economy in New Hampshire and the Greater Seacoast region through data—highlighting trends in migration, home prices, cost burden, and commuting. Following the keynote, a panel of regional leaders will discuss innovative approaches and local examples of employer engagement in housing solutions. Register here.