The typical NH family is losing ground fast according to a new report from the NH Fiscal Policy Institute (NHFPI), which finds that the cost of living has outpaced income growth so dramatically that a once-stable family budget has flipped from surplus
to deficit.
NHFPI Executive Director Gene Martin pushed back on the myth that this shift can be explained by individuals making poor economic decisions. “The cause for the shift isn’t individuals buying too many lattes,” he explained at NHFPI’s 2025 Budget and Policy Conference on Oct. 24.
In its analysis, “Affordability Eroded: Changes to the Cost of Living in New Hampshire,” NHFPI estimates that a family of four with a median household income now ends the year nearly $1,900 short after covering basic needs such as housing, childcare, health care, food, and gasoline. Ten years ago, that same family had an inflation-adjusted surplus of about $15,400—a $17,349 swing in purchasing power over the past decade.
“Ten years ago, a typical family could cover the basics, pay for other essentials, and still have a modest cushion for emergencies and savings,” says Nicole Heller, NHFPI senior policy analyst and the report’s lead author. “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.”
Median household income includes all households (families, singles, roommates, retirees) and median family income counts only households with two or more related people living together, generally higher since it excludes single-person households.
Heller says NHFPI chose to focus on median household income rather than wages alone or median family income to capture a fuller picture of financial pressure for those outside the labor force including retirees and single people. “It’s a more inclusive measure of how the middle truly lives,” she says.
The report models household budgets using two decades of federal and state data, comparing 2005, 2015, and 2024 with consistent inflation adjustments. It found that while prices for many nonessential goods such as electronics or recreation have remained stable or even dropped, essential costs have surged. Housing costs rose most sharply.
The median mortgage payment has more than doubled since 2015, while home prices have climbed 275% since 1999. A family now needs an income of roughly $157,500 to buy a median-priced home without being cost-burdened, about $57,700 more than the state’s median household income.
“The report points out that the reasons for the deficit aren’t because of personal decisions being made by any given family,” Heller says. “This is a structural problem. Families can’t afford to purchase homes, and the system itself has made essentials increasingly out of reach.” For more information, visit nhfpi.org.
Child Care Costs
Child care continues to consume nearly a third of household budgets, at around $30,000 annually for two young children, and energy and food costs have risen faster than overall inflation. Households in Coös and Sullivan Counties have seen the slowest income growth since 2009, making them especially vulnerable to rising costs.
Housing Costs
Housing costs rose most sharply. The median mortgage payment has more than doubled since 2015, while home prices have climbed 275% since 1999. A family now needs an income of roughly $157,500 to buy a median-priced home without being cost-burdened, about $57,700 more than the state’s median household income.
