By Brianna Edelstein
THE EAGLE-TRIBUNE
SALEM, N.H. — Ninety people and counting have expressed interest in affordably priced units at the Depot and Main Apartments, where ground was broken last week in Salem. The problem is with the supply — there are only 74 spots.
That rush was easily predicted, according to a new annual report by the New Hampshire Housing Finance Authority. It describes a bleak housing market when it comes to both renting and buying in the Granite State.
Rob Dapice, executive director and CEO of the public corporation, sums up, “a state of turmoil, buffeted by rising interest rates and economic uncertainty that presents extraordinary challenges for renters and homebuyers.”
The crisis has been decades in the making, the report explains.
At this point it would take at least 20,000 housing units to achieve a balanced market, meaning a 5% rental vacancy rate — New Hampshire hovers at 1% currently — and a 6-month supply of homes for sale. The existing supply is less than a month.
Leaders at Elm Grove Properties, with 11 other apartment complexes in New Hampshire and Massachusetts, have responded by taking on their first-ever workforce housing project.
The company received $20 million in low-income housing tax credits for the Salem build. It comes at a time when there are no units available at any other Elm Grove location. A collective waitlist has hundreds of names, according to a spokesperson.
Similarly, the wait for one of Salem’s four, town-run affordable properties is three to five years.
Staff at the Housing Authority say there are 180 people awaiting a call that something has become available. Most spots are reserved for seniors 62 or older with income restrictions. The only exception is if someone is disabled, as defined by federal Social Security standards.
Finding a place to live is only half of the problem, the Finance Authority report details. Affordability is another issue entirely.
In April, the median sales price of a home in New Hampshire hit a record high of $425,000, which is 17% higher than the year prior and 36% higher than April 2020.
The New Hampshire Employment Security, Economic and Labor Market Information Bureau found that essential workers earning median wages are being priced out.
A cashier, for example, with a median wage of $23,977 per year can pay for a house that costs only $87,000, the research shows.
Firefighters — median salary $46,004 — and police officers, $60,685, could buy up to $220,000. Registered nurses earning $74,835 can afford slightly more — a $272,000 home.
“The most obvious solution to our state’s housing challenges is to build more homes and remove excessive zoning obstacles that hinder this from happening,” said Dapice, the New Hampshire Housing Finance Authority leader.
But he acknowledges historic challenges with that, as well.
The cost of building materials has jumped 19% year-over-year and 36% since the start of the pandemic in 2020, according to the report.
Still, Matt Menning, principal and head of operations at Elm Grove, said recently, “We are thrilled to be leading this project and look forward to the new housing opportunities this will provide to our local communities.”
A January 2024 completion date is being eyed.
Rent will be based on what 60% of the area’s median income is. Menning says that’s likely to be between $1,200 and $1,600.
“For a project like this, in this location (just off Route 28, in sight of Tuscan Village), and depending on the family size, the maximum income for a resident could be $35,000 or $40,000, up to about $65,000 or $70,000 per year,” he said.
With those guidelines in place, he said there will be, “deep assurance that the people who live here truly are in need.”
For more information and resources about rental and mortgage assistance, visit nhhfa.org.
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