This is such a loaded topic and one that has plenty of data, but if you follow the news and listen to what is being said about real estate, you will consistently hear opinions and statistics that may be relevant to the nation as a whole. A common misconception is that all real estate markets move in unison. While there are overarching trends, such as interest rates and economic conditions, that impact the entire country, local factors like population growth, job markets, and property taxes can significantly influence a region's performance.
New England has experienced its own set of challenges and opportunities. Our limited supply of available developable land and strict zoning laws constrain the real estate market in a way that other parts of the country do not have. That lack of supply has been a benefit in some ways, insulating property values from the price drops that most of the country is currently experiencing. However, it has also caused raises in rental prices that are generating a concerning trend in affordability.
WHAT'S GOING ON IN NEW HAMPSHIRE:
New Hampshire Housing just released it's rental cost survey report on August 15th which you can read here: LINK HERE
It's a great read but thorough. To summarize, it essentially says New Hampshire is a constrained market and therefore rents are continuing to rise. As a result, New Hampshire is becoming less and less affordable. They estimate that only 13% of the tenants in 2 bedroom units can afford the units where they are renting. Essentially the only way out of this is to build more housing, or have jobs and people leave the state for more affordable locations. Raising wages would be a temporary fix to consider but that would drive escalation up as well which is a whole conversation to itself.
SO WHAT'S GOING ON NATIONALLY?
This article from Realtor is a quick read and sums it up nicely: LINK HERE
Nationally is a different story. As much as national outlets try and paint the country with one brush, that's becoming more and more misleading.
Florida has spiking insurance costs that are pushing landlord's and home owners upside down on properties they could once afford.
Austin and San Antonio overbuilt supply in the past few years which has created a market where there are more units than tenants. This is causing landlords to lower rents and provide incentives to keep and attract tenants.
San Francisco is seeing a mass exodus of tech companies and jobs, causing rents to plummet to rents lower than they were before the panedmic.
AND HOW ABOUT WHITE BARN?
We continue to look to buy in New Hampshire. Specifically we're looking for properties in Manchester and New Hampshire ranging anywhere from 5-50 units. If you know anyone with property considering selling or if you just want to connect with another investor in the market - please reach out. I'd love to talk!
Thanks for reading,
Steve Parry