Report: Challenges to Homeownership in New Hampshire
For generations, the image of a house with a white picket fence has symbolized the American Dream, providing stability, safety, and an opportunity to build prosperity. But for many Granite Staters, especially communities of color, that dream remains out of reach. A new report from the New Hampshire Center for Justice & Equity (NHCJE), in collaboration with New Hampshire Housing, “Challenges to Homeownership in New Hampshire”, offers critical insights into the persistent disparities in who can own a home.
Advancing homeownership, as a means of reducing the racial wealth gap, is at the heart of the Economic Development Policy Priorities highlighted in NHCJE’s Policy Platform, alongside livable minimum wage laws, access to affordable, high-quality childcare, and protecting equity in the workplace.
Why Homeownership Matters
A home is the single largest asset most individuals will ever hold. For communities of color, homeownership plays an even greater role in building wealth. In 2022, 44% of Black household wealth and 45% of Hispanic or Latino household wealth came from home equity, compared to just 19% for White households, according to the National Community Reinvestment Coalition (NCRC).
Homeownership is more than having a place to live; it's a tool for achieving long-term economic stability and generational wealth. Homeowners can borrow against their home’s equity and use that capital to pay for college tuition, invest in professional development, purchase reliable transportation, or cover expenses during job loss or financial hardship.
However, since home equity makes up a larger share of wealth for communities of color, these households are more vulnerable during economic downturns. A dip in housing markets or a financial shock, similar to the 2008 subprime mortgage crisis, can disproportionately impact families with few other assets to fall back on.
In New Hampshire, the gap in homeownership is concerning and above the national average. According to the 2020 Census, 33% of Black households and 41% of Hispanic or Latino households in the Granite State own their home, compared to 72% of White households. Nationally, Black homeownership stands at 42%, while White homeownership is at 72%.
Figure 1. Percentage of homeowners and renters by race and ethnicity in NH. Source: U.S. Census Bureau 2020 Decennial Census.
The Legacy of Discrimination Shapes Who Owns a Home Today
There’s a misconception that lower homeownership rates among people of color in New Hampshire are due to smaller population sizes, lack of effort, and/or financial acumen. “We want to push back against this idea that Black and Brown people don’t work as hard or aren’t financially savvy as whites,” said Anthony Poore, NHCJE’s President & CEO. In reality, homeownership rates have remained relatively consistent across all groups from 2010 to 2023, even as communities of color in New Hampshire have more than doubled, and median household incomes in Black and Hispanic or Latino households have increased.
“We want to push back against this idea that Black and Brown people don’t work as hard or aren’t financially savvy as whites.”
These disparities are a product of generations of discriminatory housing policies. Practices such as restrictive housing covenants, which were introduced in real estate agreements in the early 1900s as a way to stop minority groups from buying homes, and redlining, which became illegal with the passage of the Fair Housing Act in 1968, laid the foundation for today’s inequities. Today, credit discrimination, predatory lending, “steering” people of color or similarly marginalized communities away from certain neighborhoods, and zoning restrictions still impact home ownership.
Generational wealth, and the lack thereof, is another major factor. From slavery and the Jim Crow era to discriminatory policies after World War II, Black families were systematically excluded from wealth-building opportunities that helped build our nation’s middle class. Programs like the GI Bill of 1944 were designed to help veterans reintegrate into civilian life during a time when the U.S. was growing rapidly, but families of color were often left out.
These missed opportunities have created a persistent wealth gap that continues to give White families a significant head start that compounds over time. For example, 46% of White homebuyers receive down payment assistance from family, compared to just 10% of Black homebuyers.
The Average Home Price is Out of Reach for Most Granite Staters
This scenario is only worsened by today’s housing market. In 2024, the median home in New Hampshire cost $514,000, a level that requires an annual income of approximately $175,000 to afford. Yet, the median household income in the state is only $96,523. The gap is even wider for certain communities of color: $77,505 for Black households and $78,073 for Hispanic or Latino households, compared to $97,323 for White households. No racial or ethnic group in the state currently earns enough to afford the average home on the market.
Figure 2. Estimated Affordable Purchase Price for All Homes Based on Estimated Median Household Income in NH, by Race/Ethnicity. Source(s): U.S. Census Bureau, American Community Survey (2018-2022), 5-Year Estimates, adjusted to 2024 dollars; New Hampshire Association of Realtors Monthly Indicators. Notes: Inflation Adjustment figure uses a FY2024 forecast CPI from the Congressional Budget Office of 1.062. Median sale price for all homes stems from the NHAR Monthly Indicators using data from YTD 2024. Estimated affordable purchase price is New Hampshire Housing’s calculations using 30% of income, 5% downpayment, 30-year mortgage at 6.91%, estimated PMI, estimated 2024 taxes for NH statewide. Interest rate is the average of the 30-year Freddie Mac interest rate for January-December 2024.
As housing prices continue to outpace income growth, debt-to-income ratio (DTI) has become one of the biggest barriers to homeownership. This ratio measures how much of a household’s gross monthly income goes toward debt payments - ideally, 36% or less. But for many families in New Hampshire, that number is getting higher, close to 44%, pushing them out of mortgage eligibility.
Between 2018 and 2023, DTI was responsible for 36% of all denials, and communities of color are disproportionately affected. In 2023, 51.3% of Black and 43.5% of Hispanic or Latino borrowers in New Hampshire had DTI ratios over 45%, compared to 28.5% of White borrowers.
Figure 3. Share of Homebuyers with Debt-to-Income Ratios above 45 Percent by Race/Ethnicity, 2018-2023. Source: 2018 to 2023 Home Mortgage Disclosure Data. Note: Home purchase loans only.
Beyond disparate access to credit, New Hampshire is also facing a significant housing shortage, with an estimated need of 50,000 to 70,000 new housing units over the next two decades.
Housing is Foundational, It’s Time We Treat It That Way
Access to homeownership is not just an economic issue. Safe, stable, and affordable housing is a major social determinant of health and contributor to our long-term success, influencing everything from physical and mental well-being to educational and economic opportunities, and long-term success.
Addressing New Hampshire’s homeownership crisis starts with increasing funding for state programs like the Affordable Housing Fund, InvestNH, and Housing Champions, which support the development of affordable housing through direct investment, improved zoning, and the
adoption of land use regulations, infrastructure upgrades, and other financial incentives It also means expanding down payment assistance programs to help first-time buyers, especially young people, who increasingly struggle to save the 20% for a conventional loan or even 5% for an FHA loan.
Programs like AHEAD’s down payment assistance and those offered through New Hampshire Housing are already making a difference, but public investment alone may not be enough. Philanthropy also has a vital role in helping families in New Hampshire build stability and wealth through homeownership.
Consumer protections and government agencies like the Consumer Financial Protection Bureau (CFPB) are equally as important. Without safeguards against subprime and other predatory lending practices, first-time homebuyers and working families with lower credit scores or limited savings face higher interest rates and monthly payments. With mortgage rates hovering around 7%, these barriers are harder than ever to overcome.
Zoning reform is essential, too, as restrictive zoning policies continue to block affordable and multi-family housing in many communities across the Granite State. “We must invest in homes that meet the needs of families at all stages of life, from starter homes to accessible options for older adults,” Poore stated.
The state’s proposed biennial budget doesn’t reflect the necessary urgency to meet the challenges to homeownership.
“If our budget is a reflection of our state’s moral compass, the lack of investment in programs to advance affordable housing does not reflect the need identified by everyday Granite Staters in urban, rural, and suburban areas alike.”
“If we want our families to grow and prosper, ensuring access to affordable homeownership opportunities can have a disproportionately positive impact on our nation’s racial wealth gap,” said Poore. “With just one stroke of the pen, we could meaningfully improve family outcomes, especially for the most vulnerable.”
When we advocate for a greater state investment in housing, we are also advocating for healthier, more resilient communities. Without action, these disparities will only grow, deepening the racial wealth gap for generations to come, and making it more difficult for young adults and families to recognize the benefits of homeownership.
“If we want our families to grow and prosper, ensuring access to affordable homeownership opportunities can have a disproportionately positive impact on our nation’s racial wealth gap. With just one stroke of the pen, we could meaningfully improve family outcomes, especially for the most vulnerable.”
Dig into the statistics and learn more about homeownership in New Hampshire:
Resources
New Hampshire Housing – Mortgage & Down Payment Assistance Programs
New Hampshire State Resources – Affordable Housing Fund, InvestNH, New Hampshire Housing Champions
Affordable Housing Education & Development (AHEAD) – Down Payment Assistance