New Hampshire Home Selling

After hitting all-time highs in June 2025, the housing market in New Hampshire continues to climb. As of October 2025, the median sale price in the Granite State was $527,950, a 4.5% increase over the previous year and significantly higher than the national median of around $440,000. New Hampshire's median sale price is higher than neighbors like Vermont ($434,200) and Maine ($427,100), but remains more affordable than Massachusetts ($645,115).

Though seasonal peaks and troughs dictate how long homes in New Hampshire spend on the market, the annual average is around 40-50 days. In some local markets, like Nashua, homes tend to sell significantly faster, typically in under 30 days.

Despite a 15.2% year-over-year increase in the number of homes for sale, New Hampshire remains a seller's market with just 2 months of supply. Construction activity in the state has consistently failed to meet demand, causing a housing shortage and widespread affordability issues. However, in July 2025, Governor Kelly Ayotte signed into law a series of bills aimed at encouraging housing growth and expediting development.

New Hampshire's property taxes add to the expense of owning a home in the Granite State. With an average effective property tax rate of 1.77%, New Hampshire is the fourth most expensive state in terms of property taxes, ranking it higher than Vermont (1.71%), Massachusetts (1.11%), and Maine (1.10%).

Foreclosures in New Hampshire are uncommon, in large part thanks to high home equity. As of October 2025, New Hampshire's foreclosure rate was 1 in every 8,948 housing units. This rate was one of the lowest in the nation, and serves as further evidence of the state's stable, resilient housing market.

Housing remains in high demand across New Hampshire, offering investors a chance for attractive returns on real estate investments. The state has a stable economy and a healthy job market, drawing renters seeking convenient living arrangements and helping drive home price appreciation. While several cities and towns in the Granite State offer interesting choices and varying attractions for real estate investment and residential property development, some areas stand out.

The following cities and towns are well positioned to offer potentially higher returns on real estate investment in New Hampshire:

• Manchester: Manchester is the largest city in the state, boasting a strong job market that attracts new residents seeking multifamily housing. Long-term rental investors here may enjoy stable monthly rents and solid price appreciation.

• Nashua: With a strong job market and proximity to Manchester, Nashua sees high rental demand and steady property appreciation rates.

• Portsmouth: The city's recent property appreciation rates make it appealing to long-term investors. In addition, its strong tourism economy offers investors premium rental income due to year-round demand for short-term rental properties.

• Concord: As the state capital, Concord's housing market benefits from government jobs and stable employment (the unemployment rate is just 2.8%, well below the national average). In addition, its proximity to other major cities, like Manchester and Nashua, makes it a reliable market to invest in rental properties.

• Durham: This city is home to the University of New Hampshire, which attracts a large student and staff population, creating consistent demand for rental properties. Investors may capitalize on this for short- and long-term rentals and potentially higher returns on investment.

• Keene: Keene is a college town (Keene State College) with strong rental demand from undergraduates actively seeking shared living arrangements. Investors in rental properties within the town can often capitalize on this year-round rental demand.

• Dover: Dover's steady growth in industries like tech and healthcare attracts young professionals seeking modern housing. As a result, demand for rentals is on the rise, especially in the city's revitalized downtown areas.

• Conway: The town provides real estate investors with promising opportunities for short-term rental properties owing to tourism activity, which is its primary economic driver.

• Hampton: Located along the state's seacoast, Hampton attracts year-round residents and tourists, making it a prime area with strong rental potential.

Typically, homes with features like updated bathrooms and kitchens, open-concept floor plans, finished basements, and attached garages tend to sell faster in New Hampshire, as there's consistent demand for such homes. While several other factors may determine how quickly a home sells, the typical property spent a median of 47 days on the market (DOM) in October 2025.

In New Hampshire, homes with one or more of the following characteristics or features are likely to sell faster than others:

For instance, properties with modern features are in high demand in Lebanon by many professionals and healthcare workers looking to purchase move-in-ready homes. Similarly, vacation-home buyers in Conway have a preference for homes with newer HVAC systems and modern kitchens, while in Rochester, homes with modern upgrades often stand out among older housing stock, helping them sell quickly.

In New Hampshire, home sellers must understand zoning laws, permitting processes, and local regulatory requirements. Zoning is largely driven by local authorities and dictates what can be built, where it can be built, and how a building is used. On the other hand, permits are mainly required before initiating construction, building any structure, or introducing changes to a structure or landscape.

Local zoning ordinances and permits can go a long way in impacting a property's value. Homebuyers often ask for a zoning compliance letter or zoning verification letter to confirm that a property is free of zoning violations and related legal issues. To sell a property fast and maximize return on investment, sellers must clearly understand the prevailing zoning laws and regulatory requirements in their local markets.

• Areas with strict zoning laws: Places with strict zoning laws in New Hampshire are typically known for enforcing rigid density rules, minimum lot sizes, and controlled subdivision approvals in a bid to manage growth and preserve community character. For instance, strong conservation overlays and rural zoning protections limit subdivision in Amherst, while Bedford typically emphasizes maintaining high-value residential neighborhoods and imposes tight controls on multifamily housing.

  Similarly, while conservation overlays and stringent zoning protect wetlands in Windham, they also prevent dense development. Sellers in these areas may experience longer approval times for expansions, subdivisions, or accessory dwelling units (ADUs).

• Areas with less bureaucratic zoning laws: In New Hampshire, these places include Rochester, where fewer regulatory barriers help encourage residential and commercial growth, and Manchester, where multifamily housing, higher density, and mixed-use developments are allowed. In Berlin, more flexible zoning and less red tape promotes the redevelopment of older housing stock. These areas attract investors because they're more development friendly and often have streamlined permitting processes, along with fewer regulatory barriers.

• Areas requiring a special permit: In these areas, any uses outside standard zoning, including notable property changes and multifamily development, require special permits obtained through public hearings. The permitting process can slow resale and development, particularly when buyers intend to build or expand.

  For example, special permits are required for cluster housing or mixed-use projects in Londonderry, while Zoning Board of Adjustment hearings are usually needed for variances to lot sizes in Pelham. In Derry, Zoning Board approval is required for variances, nonconforming uses, and some expansions.

• Areas requiring a Certificate of Occupancy (CO) before legal occupation: Homes in larger towns or cities with formal code enforcement in New Hampshire typically require a CO before they can be legally occupied. For instance, all major renovations and new construction in Concord trigger a CO, and in Salem, CO enforcement is tied to inspections and building permits. Similarly, COs are mandatory for new residential and commercial properties in Portsmouth, and following major renovations, changes of use, or changes of occupancy. In some areas where a CO is required, home sellers may not be able to legally transfer ownership of new builds to buyers without a CO.

• Areas requiring approval of a historic commission: These areas typically protect historic character by ensuring that developers obtain approvals from the local historic commission for certain renovations, especially exterior modifications. In such places, renovations are often costlier and may take longer to obtain permits and project approvals. For instance, changes near Dartmouth's historic core in Hanover are reviewed by the Hanover Planning Board. Similarly, in Portsmouth, Historic District Commission approval is required for material usage and design.

While some municipalities in New Hampshire have complex real estate regulations that can complicate renovations, sales, and new development, others have a reputation for clear and straightforward regulations. To maximize property value and avoid legal issues, investors must identify the complexity of each local market's regulatory environment and stay in compliance with all relevant rules.

Each local real estate market's regulatory climate in New Hampshire can determine how easy or difficult it is to develop or invest.

Development-Friendly Areas

These areas typically focus on design standards over restrictive uses and may be more willing to adjust codes for housing development and growth. Furthermore, they often encourage multifamily and mixed-use development, with predictable approval pathways. The following New Hampshire municipalities tend to have development-friendly real estate regulations:

• Nashua: Downtown zoning supports mixed-use and multifamily by right in many districts, making approvals for infill projects easier.
• Salem: In Salem, certain overlay zones are created and designed to accommodate mixed-use growth on a large scale.
• Dover: Zoning here permits mixed use in central areas, with streamlined site plan reviews that encourage downtown reuse.

Moderately Regulated Areas

While these municipalities support growth and housing development in targeted areas, projects outside special districts or overlays may involve interactions with the local planning or zoning board. There's typically flexibility through overlays, but the rules are conventional. Even though real estate developers often face reviews, projects are usually approved quickly, provided they align with certain rules. Examples of areas with moderate regulatory rules in New Hampshire include the following:

• Derry: Allows mixed-use zoning in certain neighborhoods, with some restrictions on design and density.
• Rochester: Multifamily development is permitted in commercial districts, but usually with caps on floor area.
• Concord: While projects require design review and conditional-use approvals, downtown opportunity corridor zones permit higher density.

Highly Restrictive or Bureaucratic Areas

Real estate developers in these areas are typically subjected to approval hearings and face tighter environmental limits impacting housing development. In addition, these places are known for multiple review layers, strong community resistance to density, and large-lot zoning requirements. In New Hampshire, such areas include the following municipalities:

• Hollis: Its rural character rules and strong aquifer protections typically result in large-lot zoning and limited multifamily options.
• Portsmouth: The Historic District Commission's approval is needed for projects located in its downtown, which typically adds design oversight to zoning.
• Durham: Town politics and multiple environmental overlays create increased scrutiny for multifamily housing.
• Hanover: Hanover has strict zoning and resistance to higher density in certain neighborhoods. In addition, obtaining approvals may be slower than in other areas of the state.

Regulatory Climate Factors

An area's regulatory climate includes permitting processes, zoning laws, and review requirements that either ease developers' activities in real estate or make them more difficult. The local regulatory environment plays an essential role in shaping where, how, and what can be developed in a locality, along with how long projects typically take. A municipality's regulatory climate can either smoothen the path for investors and developers or add layers of complexity to land development, home renovations, or house flipping.

The table below indicates the various regulatory climate factors to watch in New Hampshire, how they impact real estate development, and the localities in the state where each factor is prevalent:

*NIMBYism - Not in My Backyard

House flipping in New Hampshire offers investors a potentially lucrative opportunity. However, successfully flipping properties in the state requires investors to locate homes with potential for renovation and resale (usually distressed or outdated ones) at below-market prices. When looking to flip a property in New Hampshire, it's important to consider the condition, location, local market trends, and potential ROI.

The following flipping and resale strategies can help maximize profit in New Hampshire's housing market:

Pricing is an important step in the home-selling process. By setting a competitive price, home sellers are more likely to attract serious buyers and quickly sell listed properties while maximizing profit margins. However, before considering pricing any home in New Hampshire, make sure to assess the local housing market. In particular, consulting a local real estate agent or appraiser to help analyze comps, including active, pending, and recently sold properties within the last 3 months, is highly recommended before setting a price.

The following pricing strategies may help sellers yield the best return on investment in the New Hampshire real estate market:

Home sellers should consider adopting the following pricing strategies based on the prevailing market conditions within a locality in New Hampshire:

Although the New Hampshire housing market, like every other property market, is largely driven by demand and supply, it's shaped and influenced by several other macro factors. Understanding the factors driving current trends in the state's local markets can help real estate investors make informed decisions regarding when and where to buy or sell residential properties:

Economic Factors

Factors like wage growth, job growth, inflation rates, construction activities, and overall affordability largely drive the types of homes people look to buy or rent. They also determine buyer and renter demand in each local market. For instance, as one of New Hampshire's biggest employment hubs, the strong job base in Manchester keeps housing demand extremely high. Similarly, retail and logistics growth along Interstate 93 has encouraged new housing projects in Salem.

Demographic and Social Factors

Housing demand in New Hampshire is influenced by factors such as the median age, population shifts, and lifestyle preferences. For example, starter-home buyers and young renters are typically drawn to the college town of Keene, while a growing population of young professionals is drawn to Dover's downtown.

Regulatory and Legal Framework

Building codes, zoning laws, and permitting requirements in New Hampshire typically affect how easy or difficult it is to construct new housing units, impacting inventory levels. For instance, strict zoning laws in Portsmouth are partly responsible for restricting housing supply and supporting high prices, while the clear permitting processes in Concord support moderate growth.

Taxation and Fiscal Policy

The high property tax rate in New Hampshire influences housing choices made by potential homebuyers. For instance, in Claremont, buyers typically struggle with higher tax bills, which can negatively impact housing affordability. On the other hand, the relatively lower property taxes in Rochester make the city more appealing to homebuyers in the state.

Infrastructure and Development Trends

Commercial development, new highways, and commuter rail expansion in New Hampshire typically improve accessibility to residential properties, thereby boosting their values. For example, the I-93 expansion and major redevelopment in Salem are fueling housing growth, while downtown redevelopment in Portsmouth is increasing housing demand. Similarly, in Londonderry, airport-area business development continues to drive housing demand.

Market Sentiment and Investor Behavior

Investor speculation and buyer psychology sometimes influence housing demand volatility in New Hampshire. For instance, condo prices are high in Portsmouth due to investor appetite for luxury condos.

In New Hampshire's housing market, inventory is limited, demand outpaces supply, and median home prices remain elevated. Depending on the location, multifamily homes, move-in-ready single-family homes (especially those with 3-4 bedrooms), homes with outdoor appeal, and starter homes are generally in high demand and tend to sell fast. Though New Hampshire is a Dillon's Rule state (meaning local government powers are granted by the state), zoning laws often vary by city or town. While some areas enforce strict zoning, density limits, or historic preservation laws, others have flexible zoning that allows for easier growth and development.

Investors looking to navigate local real estate regulations in New Hampshire should consider working with local agents or attorneys. Factors such as economic conditions, tax policies, investor sentiment, demographics, infrastructure development, and regulatory frameworks are among the drivers of current trends, and persistently elevated prices, in the state's housing market.