House inspection: Are Hanover’s high housing prices here to stay?

Housing prices in Grafton County continued to rise in early 2026, at the same time as the speed of value progress slowed in contrast to earlier years, a March report by the New Hampshire Association of Realtors discovered. The median value for a single-family residence in New Hampshire reached $530,000 in March, a one % enhance because the begin of the 12 months and the smallest annual enhance since 2023. At the identical time, first-quarter knowledge from this 12 months signifies that prices are nonetheless trending upward general, having elevated 3.9% since March 2025.

In Grafton County, the upward pattern has been much more pronounced. The median gross sales value rose to $490,000 in March 2026, a 15.6% enhance from March 2025, whereas year-to-date figures present a 6.7% enhance. Together, New Hampshire Realtors’ knowledge means that whereas month-to-month progress could also be moderating, the broader trajectory stays upward.

In response to these tendencies, the Hanover Town Council passed three zoning amendments final 12 months to encourage denser housing within the city. Three further amendments are on the poll this 12 months, two of which might additional ease zoning restrictions and one among which might strengthen zoning restrictions.

In an interview with The Dartmouth, economics professor William Fischel mentioned Hanover’s housing tendencies replicate long-standing structural constraints on the housing provide relatively than short-term market shifts. He defined that native zoning legal guidelines throughout New England have traditionally restricted the quantity of land accessible for growth. Pressure from Concord, nevertheless, has “produced localities to relax some of these laws to promote housing construction,” Fischel mentioned.

“The backlog is large, and it is difficult to build out of conditions that have been decades in the making,” he defined

At the state degree, knowledge factors to a persistent imbalance between provide and demand. Although stock has elevated modestly, with about 1,465 single-family houses available on the market in March, a 13.2% enhance from the earlier 12 months, general provide stays traditionally low, in accordance to the New Hampshire Realtors report.

New Hampshire Realtors vp Dave Cummings informed The Dartmouth that short-term fluctuations, particularly on the county degree, must be interpreted with warning. Grafton County knowledge “tends to be a little more volatile and wouldn’t necessarily point to a trend,” he defined.

Cummings mentioned stock stay far under that of a balanced market ranges, which happens when the provision of houses on the market roughly equals the demand from consumers. The housing market is measured in months of provide, the time it might take to deplete present stock on the present tempo of gross sales. A 5 to seven-month provide of houses is usually thought of balanced, in accordance to Cummings.

“2.6 months’ supply in Grafton County is still incredibly low,” Cummings mentioned. “The last time we even had a five-month supply was way back in 2016.”

Because provide stays constrained, even latest good points have had restricted affect on affordability, in accordance to Cummings.

New Hampshire’s housing affordability index for single-family houses stood at 59% in March, that means the median family earnings is barely 59% of what’s wanted to afford a median-priced residence, in accordance to the New Hampshire Realtors report.

While the COVID-19 pandemic accelerated value progress, Cummings recommended the underlying scarcity predates it, pushed by years of development, zoning and allowing challenges.

“Housing was affordable in this area back in 2012,” Cummings mentioned, including that value progress throughout COVID was “driven by inventory, which was heading in that direction anyway.”

In Grafton County, these pressures are notably seen within the Upper Valley, the place demand is formed partly by the College and native employers.

Dartmouth scholar authorities city affairs liaison Daniel Cai ’26 mentioned housing prices that new graduates “cannot reasonably be expected to afford” have instantly affected college students’ means to stay within the Upper Valley after commencement.

“Although not many students choose to stay after graduation, a meaningful number still do — whether for programs like the Bachelor of Engineering, medical school or other graduate degrees,” Cai mentioned. “However, housing remains a major obstacle. It is extremely expensive… and nearly impossible to find something truly affordable.”

According to Cai, college students, native residents and policymakers disagree on housing “more often than you might expect.”

“Many residents are concerned that housing increasing supply … could increase competition and potentially lower rents or property values,” Cai mentioned. “Increasing housing supply would introduce more competition in the market, which generally benefits renters.”

Cai pointed to Article 7, the proposed zoning modification which might additional limit growth in Hanover. Passing it might “ban certain types of housing development roughly across 80% of residential lots in the walkable areas of town,” he mentioned.

“I remain hopeful that students will continue to engage in these discussions and advocate for themselves, alongside the student government, to address the ongoing housing and affordability challenges in Hanover,” Cai mentioned.