As the 2026 legislative session ends and election season begins, one issue continues to rise above the rest for NH’s business community: housing. Across the board, the message is consistent. Employers are trying to grow, but prospective employees cannot find a place to live. This is not only about affordability. In many cases, it is about availability. There are simply not enough homes.
New Hampshire has been grappling with this shortage for nearly a decade. In the early 2010s, the state typically had between 8,000 and 13,000 homes on the market at any given time. Today, that number has dropped to just over 1,600, according to the NH Association of REALTORS. That decline has created intense competition for housing, driving up prices and limiting options across all income levels.
One of the root causes is zoning. According to the NH Zoning Atlas, about 66 municipalities do not allow a single-family home to be built on less than 1.5 acres. Some communities have even broader restrictions. Over time, these rules have constrained the type and scale of housing that can be built, making it difficult to respond to changing demand.
The good news is that policymakers have begun to address these challenges. In recent years, NH has enacted a series of housing reforms that are starting to show results. Many of the most impactful changes are small, technical adjustments that remove longstanding barriers to development.
Allowing accessory dwelling units is one example. These units, often created within or alongside existing homes, provide a relatively low-cost way to add supply. Eliminating parking minimums is another. Excessive parking requirements can significantly increase development costs and reduce the number of units that can be built on a site. Easing lot-size and setback requirements would also play a critical role by making it feasible to build on smaller parcels or add units in previously constrained areas.
These types of reforms often deliver the greatest impact because they enable modest, lower-risk projects. They help add new units to the market without the need for large-scale redevelopment. Across the state, there are signs these changes are working. Communities that have embraced them are seeing increased interest in development, more permit activity, and a gradual expansion of supply.
The state is currently preparing for the next phase of housing policy implementation. HB 631, which allows residential and mixed-use development in commercially-zoned areas where infrastructure can support it, will take effect on July 1. Developers are eager to take advantage of this law, identifying sites and projects that can move forward once the law is in place.
This is a significant step forward. By opening commercial districts to residential development, NH is creating new opportunities for housing in places that are already connected to jobs, services, and infrastructure. This approach not only increases supply, but also supports more efficient land use and stronger local economies.
Despite these positive developments, it would be a mistake to declare success too early. New Hampshire’s housing shortage was years in the making, and it will take sustained effort to fully address it. The work is far from finished and challenges remain. The encouraging news is that NH has entered a new phase of the conversation, one defined less by debate over whether to act, and more by how to act effectively.
Policymakers, stakeholders, and industry leaders are already looking ahead to the 2027 legislative session, taking a hard look at implementation challenges, identifying regulatory bottlenecks, and exploring new tools to support housing production at scale. We are working to balance statewide priorities with local flexibility, ensuring that communities can grow in ways that reflect their unique character while still contributing to the broader solution.
The state has made progress, and early indicators suggest that recent policy changes are beginning to have an impact. The next challenge is to sustain that progress, accelerate where possible, and remain committed to the long-term goal: a housing market where supply can meet demand, and where NH remains a place where people can afford to live, work, and build their future.
Natch Greyes is vice president of public policy at the Business & Industry Association of NH. For more information, visit BIAofNH.com.
