Is New Hampshire an Affordable Place to Live?

Understanding the affordability of a location involves more than just glancing at a few price tags; it requires a comprehensive look at various financial elements that shape daily life. Affordability is inherently subjective, as individual circumstances, income levels, and lifestyle preferences significantly influence what one considers manageable. This article explores the multifaceted components contributing to the cost of living in New Hampshire, providing a detailed overview of the financial landscape within the state.

Housing Costs in New Hampshire

Housing represents a significant portion of living expenses, and New Hampshire’s market reflects a competitive environment.

As of January 2025, the median home price in New Hampshire was approximately $488,300, indicating a 9.7% year-over-year growth. This figure is higher than the national median home sales price of $437,923 in January 2025. The state’s housing market is characterized by low inventory, which contributes to upward pressure on prices. New Hampshire had an average of 1.9 months of housing inventory in 2024, significantly below the 6.5 months estimated for a balanced market. This limited supply, coupled with steady demand, means homes often sell quickly, with some reports showing properties going under contract in around 9 days.

For renters, the median monthly rent across all units in New Hampshire, including utilities, was $1,691 as of May 2024. A two-bedroom unit had a median cost of $1,833 per month in early 2024, marking a 3.9% increase from 2023.

Factors such as proximity to major metropolitan areas, particularly Boston, also influence housing costs, driving prices higher in southern regions of the state. This sustained increase in housing costs poses challenges for both prospective homebuyers and renters, making it difficult for many to save for down payments or find affordable rental options.

Taxation Structure

New Hampshire’s taxation structure is distinct, largely due to the absence of a statewide general sales tax and a broad-based earned income tax. This unique approach is often perceived as a financial advantage for residents. However, the state relies heavily on property taxes to fund local services, including public education and municipal operations.

Property taxes in New Hampshire are among the highest in the nation, serving as the primary revenue source for local governments. Property taxes are based on the fair market value of real estate. The average 2023 property tax rate across New Hampshire’s cities and towns would result in an annual property tax of $9,439 for a home taxed based on the April 2024 median sale price.

This reliance on property taxes means that homeowners, especially those with higher-valued properties, bear a substantial tax burden. While the lack of sales and income taxes can reduce daily expenses and direct payroll deductions, the significant property tax obligations can substantially impact overall housing affordability.

Daily Living Expenses

Beyond housing and taxes, daily living expenses in New Hampshire encompass a range of costs that contribute to the overall affordability picture.

Utility costs, including electricity, heating, water, and internet, represent a notable expense. Average monthly utility costs in New Hampshire are around $401, though for a two-bedroom rental unit where the tenant pays for heat, the median cost was $266 per month in 2024.

Transportation costs, covering gas prices and car insurance, also factor into the budget, especially given the limited public transit options outside of urban centers. A single adult without children might expect to pay upwards of $4,400 annually for transportation.

Food costs in New Hampshire generally align with national averages, with a single resident spending approximately $379.92 per month on food. Healthcare expenses are another significant component; an average single individual in New Hampshire might spend around $9,526 annually on healthcare.

Education costs, while varying by individual circumstances, also contribute to household budgets. For higher education, tuition rates at state institutions also need to be considered by families planning for future educational needs.

Income Landscape and Economic Factors

Understanding the income landscape is crucial for assessing overall affordability in New Hampshire. The estimated median household income in New Hampshire was approximately $96,838 in 2023.

For families, a married-couple family with at least one child had a median income of $152,054 between 2019 and 2023.

New Hampshire’s economy is supported by diverse industries that influence earning potential. Key employment sectors include manufacturing, tourism, and healthcare, alongside professional and business services.

While the median incomes are relatively high compared to national averages, the ability to comfortably afford expenses still depends on the specific costs faced. For example, to afford the statewide median cost of a typical two-bedroom apartment with utilities, a New Hampshire renter would have had to earn over $73,000 a year in 2024. This highlights that even with competitive incomes, the rising cost of living presents financial considerations for many residents.

Regional Variations in Affordability

Affordability within New Hampshire is not uniform, with significant cost variations across different geographic regions.

The southern part of the state, particularly areas closer to the Boston metropolitan area, tends to have higher living expenses. For instance, Rockingham County had estimated annual costs for a household with two working adults and two children reaching $131,157 in early 2024. The median sale price for a single-family house can also differ greatly between counties.

Conversely, more rural and northern regions of New Hampshire generally offer lower costs of living. Coos County, located in the northern part of the state, had a lower estimate for annual costs for a similar household, at $87,528 in early 2024. Similarly, Berlin, a city in northern New Hampshire, is recognized as one of the most affordable places to live, with average house prices significantly lower than the state median.

These regional differences extend beyond housing to property taxes and daily expenses. While property taxes are high statewide, their exact burden varies by municipality, often correlating with proximity to economic centers and demand for local services. The choice of location within New Hampshire therefore plays a substantial role in determining an individual’s or family’s overall financial outlay.