February 11, 2022
Affordability hits 17-year low
The January 2022 NH housing market report
With New Hampshire residential home prices showing no sign of slowing, January affordability hit an all-time monthly low for NHAR’s 17-year recording period.
Affordability is measured by comparing household income with housing prices. An affordability index of 120, for example, means the median household income is 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.
That number hit 98 in January, dropping under 100 for the first time since NHAR’s records began in 2005. For context, the affordability index has been as high as 220 within the last 10 years.
Inventory has been the primary driver of the steep price increase, and that continued to plummet in January as well, with only 931 single family residential units on the market at the end of the month – a 35 percent drop from a year ago and also an historic low for NHAR data.
As a result, the median price in New Hampshire hit an all-time January high of $399,700 – 14 percent up from last year.
Questions? Please email Communications Director Dave Cummings (email@example.com), or call 603-554-7855.
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