2024 in Review: NH Housing Market's Affordability Crisis

A historic year for New Hampshire's housing market ended with a median home price of $514,000, reflecting ongoing affordability challenges and limited inventory.

The Tale of 2024: Affordability Hits Record Lows in New Hampshire

The year-end median price of a single-family home in New Hampshire reached $514,000, capping off a year defined by soaring prices, tight inventory, and dwindling affordability. December alone set a new record with a $507,000 median price—the highest ever recorded for the month.

This marked the 59th consecutive month of year-over-year price increases, underscoring the persistent demand in the Granite State's real estate market.

Affordability Index Plummets to Historic Lows

The affordability crisis has reached unprecedented levels. In December, New Hampshire's Affordability Index hit 59, meaning the median household income was just 59% of what’s needed to purchase the median-priced home under current interest rates.

Compare that to five years ago, when the index stood at 131, and the dramatic shift becomes clear. What once seemed attainable for middle-income households is now slipping further out of reach—a challenge that resonates deeply with New Hampshire residents striving to achieve homeownership.

Inventory Offers Modest Relief but Remains Tight

While inventory levels improved slightly in 2024, the numbers remain far from what’s required for a balanced market. At the close of the year, 1,549 homes were on the market—an 8% increase from the prior year but still equating to just 1.5 months of supply.

A balanced market typically requires 5-7 months of inventory, a level New Hampshire hasn’t seen since October 2016. Without significant growth in housing stock, buyers will continue to face fierce competition and rising prices.

Key Takeaways for Buyers and Sellers in 2025

For buyers, the affordability and availability challenges of 2024 signal the importance of working with an experienced real estate professional to navigate the competitive landscape. Sellers, meanwhile, can take advantage of strong demand and rising prices to secure favorable outcomes.

As we move into 2025, understanding local market dynamics is critical for success. Let’s connect to discuss your real estate goals in this challenging yet opportunity-filled market.