Greater Nashua Workforce Housing Coalition

Affordable housing is essential for all of us – individuals, communities, and our economy. According to federal standards, housing is considered to be affordable when it costs no more than 30% of the total household income. Simply put – affordability is relative to one’s income and includes all ranges of income.

The affordable housing issue in Greater Nashua represents not only a discrepancy between income and housing costs, but a lack of housing choice as well. Limited options exist for both buyers and renters. The rising cost of land and construction in the state of New Hampshire, coupled with the lack of supply, has driven the median home purchase price in the Greater Nashua area to $270,000 in the first half of 2005; a 5.6% increase from 2004. Over the past 5 years, the Greater Nashua area has experienced a staggering 50% increase in home purchase price.

Families who can’t afford to buy a home in the current market are increasing the demand for rental properties. Those properties, however, are increasingly difficult to find. The vacancy rate for 2-Bedroom units in the Greater Nashua area for the first half of 2005 is 2.1%; well below the 4-5% vacancy rate that is considered to represent a balanced market. The median rental cost for a 2-Bedroom unit in 2005 is $1,056 per month. Using the established guidelines, that means that the household income required to make this 2-Bedroom rental affordable would be more than $42,000 per year.

Employers repeatedly cite the housing shortage as a major deterrent in both employee recruitment and retainment. The high cost of housing often causes employees to seek housing outside of their employment area, increasing commuting time. Lengthy commutes have an impact on employee performance, detract from time spent with family and in the community, and add to growing traffic concerns.

State and local efforts are underway throughout New Hampshire to provide an adequate supply of housing options for our present and future workforce. What are the solutions? Quality design, placement, and land use are vital to accomplishing this goal. Changes in restrictive zoning requirements will facilitate the adoption of “smart growth” principles for the creation of walkable neighborhoods that offer a variety of housing types and opportunities. Mixed-use development will help to strengthen the existing infrastructure of our communities, promoting independence in our citizens. Adaptive re-use is an effective way to preserve historical integrity, while serving the housing needs of our community. Municipalities can offer incentives to developers who commit to producing affordable housing units. Employer-driven solutions such as relocation assistance and forgivable loans are also helpful tools.

The Greater Nashua Workforce Housing Coalition represents a regional approach to increasing the opportunities for our workforce in support of a healthy economy, while enhancing the sense of community.

Visit for more information: www.GNWHC.org