Written in Granite: Economic growth puts pinch on local housing

NASHUA, N.H. — Mayor Jim Donchess gave his State of the City Address inside City Hall chambers last week. The popular city official was upbeat throughout his 30-minute address and shared encouraging news about the Gate City.

“Nashua is strong and growing. Our population is on the rise after decades of no growth. Our economy is robust with jobs available. Nashua’s finances are Triple A-rated. Our city and our neighborhoods are safe. Our downtown is thriving. We are fortunate to be living in Nashua in 2024, and I am looking forward and optimistic to Nashua’s future.”

The mayor touched upon a variety of topics, and housing was one of them. The shortage of housing is a significant challenge, he said, stating that the vacancy rate for apartments is currently at one-half of 1%. The average price of a single-family home has risen to $437,000, according to Zillow.

The mayor explained that our housing shortage has come about because of an outgrowth of Nashua’s strong economy, our desirable location within the Boston metro area and people wanting to move here and raise a family.

Donchess says that his administration is working hard on bringing more affordable housing and market-rate housing to Nashua. He listed his latest accomplishments, including the Lofts 34 on Franklin Street, Riverside Landing near the Hudson Bridge, Monahan Manor at Central Street, 22 units at the former Indian Head Bank building on Main Street and150 units of workforce housing at the corner of Marshall and East Hollis Streets.

In addition, 150 new apartment units will be opening this week at The Flats on High Street in the downtown. Mayor Donchess says that this building has stunning views of the city and will be great for young people to take occupancy in.

Nashua’s skyline is looking very different these days as more tall apartment buildings and others fill in the vertical open spaces, giving the city a very sophisticated, modern appearance.

I give Mayor Donchess and city officials high marks on moving Nashua forward, but I have some concerns about my hometown.

I’m not sure how many “regular” folks will be able to afford living here in the future. Nashua is an old, proud, mill city with humble roots, and it’s beginning to look “fancy.” Are we attracting the right kind of residents? Can we keep a balanced market?

Nashua property taxes are ridiculously high, and rents have soared once again. For example, The Flats on High Street are not cheap for most “young people.” The layouts look gorgeous online.

Studio:

$1,790

1ba, 518 sq. ft.

One Bedroom:

$2,125

1ba, 705 sq. ft.

Two Bedroom:

$2,600

2ba, 1055 sq. ft.

It’s not only Nashua. It’s a tough housing market across the entire state.  According to a 2022 report from New Hampshire Housing, a household would need an annual income of around $74,000 to afford a two-bedroom unit at the average monthly rate of $1,858 in Hillsborough County.

In that report, it also mentioned that “47% of New Hampshire renter households are paying 30% or more of their household income on rent.”

It’s not easy for those who desire to purchase a home because there’s a limited supply here, especially at a price that most first-time home buyers can afford. This makes it challenging for renters to become homeowners. That, in turn, keeps rental vacancy levels low because “people will rent longer if they cannot buy a home in their price range.”

A sign (and sigh) of the times. A new Nashua, perhaps.