(The Center Square) — New Hampshire is mired in an affordability crisis with the cost of living rising faster than most household incomes, according to a new report, which says the financial imbalance is hurting the state’s economy.
The report by the New Hampshire Fiscal Policy Institute, released Tuesday, found that a family of four in the state typically earns about $100,000 a year, which falls about $2,000 short of covering basic needs such as housing and healthcare, while essentials like food and energy are straining household budgets.
The average family is earning about $17,000 less per year than 10 years ago because of the lingering pinch of inflation and other rising costs, according to the report.
“Ten years ago, a typical family could cover the basics, pay for other essentials, and still have a modest cushion for emergencies and savings,” Nicole Heller, the institute’s senior policy analyst and lead author of the study, said in a statement. “Today, that same family is falling short. Not because they’re earning less, but because the cost of living has grown so much faster than incomes.”
Among the report’s key findings:
* The monthly mortgage payment for a median-priced home has more than doubled since 2015, rising 164 percent, while home prices overall have surged 275 percent since 1999. A typical family buying a median-priced home in 2024 would need an income of $157,500 to avoid being cost-burdened, about $57,700 more than the state’s median household income.
* Mortgage costs have doubled since 2015, with the average cost for a medium priced single-family home increasing from $23,000 to over $47,000 a year. A typical family buying a median-priced home in 2024 would need an income of $157,500 to avoid being cost-burdened. That’s about $57,700 more than the state’s median household income.
* Child care services for two children under age five costs about $30,000 per year or roughly 30% of median household income. Over a typical childhood, a family could spend nearly $300,000 on care for two children.
* Home energy costs have nearly doubled since 2005, while food prices in the Northeast are up 72%, outpacing overall inflation. A healthy food plan for a family of four now costs about $11,900 annually.
“The squeeze families are feeling isn’t a matter of personal budgeting – it’s a structural affordability crisis,” Gene Martin, the institute’s executive director, said in a statement. “When families can’t afford to live and work in New Hampshire, it threatens the long-term strength of our communities and our overall economy.”
