More than half of New Hampshire renters are considered “cost-burdened,” meaning that they’re paying at least 30% of their income in rent, according to new data from the Census Bureau.
Nicole Heller, a policy analyst at the New Hampshire Fiscal Policy Institute, says that’s a trend for renters across the country, and it can limit possibilities of saving up for a home.
“We know that home ownership is a good way to build equity and build wealth for a household,” she said. “Seeing that number of renters being cost-burdened does make us think about what will be their ability to do wealth building.”
About 30% of renters in the state are under 35 years old, compared to 9.4% of homeowners, and they make less than half the median income as homeowners do, roughly $53,816, according to the yearly American Community Survey. The data from the Census Bureau also shows that renters are more likely to live in a home with a single income, compared to homeowners, which are more likely to be in a two-earner household.
Recent data from New Hampshire Housing shows the minimum income needed to affordably rent a two-bedroom apartment in the state is closer to $73,000, and only 13% of two-bedroom apartments are considered affordable.
Heller said she’ll be tracking if there are ripple effects in the housing market after the Federal Reserve lowered interest rates. She said she’s also hopeful as more housing units are built, costs will come down.
“As supply will go up, we hope to see that more people find housing and some of the prices come down, particularly for rental units,” she said.
The age of rental units can also contribute to higher housing costs. About 58% of renters in New Hampshire also tend to live in housing built before 1979.
“If something like the insulation isn’t as efficient their energy cost may be more than someone in a home,” Heller said. “It can have an impact on a renter’s health or they may end up paying for heating to stay warm in the winter.”
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