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Solving New Hampshire’s housing crisis is a job for everyone who wants to keep the Granite State prosperous, says Gov. Kelly Ayotte — starting at the top.

“Whoever we’ve got to get around this table, whatever barriers we’ve got to knock down, I’m all in,” Ayotte said.

She made her remarks at a housing policy forum hosted Monday by the Business and Industry Association at the New Hampshire Institute of Politics, pledging to do what it takes to bring more affordable housing to the state.

Ayotte noted that the Manchester-Nashua metro area was recently named one of the country’s hottest housing markets and that the median home price in the state is now over $500,000. She said her focus has been on cutting red tape to speed up construction and identifying areas where the state could make the biggest difference — which is why permitting was such an important part of the budget.

While more people are attracted to the state by its “New Hampshire Advantage” of low taxes, safe communities, strong schools, and high-quality health care, available housing stock is at an all-time low, said Bob Quinn, CEO of the New Hampshire Association of Realtors.

As a result, home prices have been driven beyond the average resident’s ability to pay.

“Most people are boxed out of affording even homes in the median price range,” Quinn said.

New Hampshire’s available housing stock is around 4,000 homes, Quinn said — well below the 6,200 homes on the market in 2019. That means the housing market was already experiencing an inventory crisis before the COVID-19 pandemic, when buyers flocked to the Northeast to escape the over-the-top restrictions in other states.

Michael Skelton, president and CEO of the BIA, said that without more supply soon, New Hampshire’s housing shortage could become a larger economic crisis as people and businesses move to places where housing prices are lower.

“New Hampshire residents cannot count on good-paying jobs. That’s really what’s at stake,” Skelton said.

A recent St. Anselm College Survey Center poll finds Granite Staters agree it’s time to act on housing.

“Our survey results show that pro-housing attitudes remain consistently strong across all demographic categories. Seventy-eight percent of survey respondents agreed with the statement ‘My community needs more affordable housing to be built.’ In 2020, 63 percent of respondents were in agreement,” according to the poll. 

Housing is key to Manchester’s future, said Mayor Jay Ruais, as the city juggles serious needs such as workforce housing, reducing homelessness, job training, and making the city more affordable. But Manchester isn’t alone in the housing crisis, he said, and every community needs to come together to take on the problem.

“We’re 234 municipalities in the state of New Hampshire. Sometimes we all have to come together on one issue and speak with one voice,” Ruais said.

Ayotte is stepping up to lead the state through the crisis, said Matt Mayberry, CEO of the New Hampshire Home Builders Association. Mayberry said Ayotte understands the state desperately needs more housing and that builders and developers need fewer regulations to make that happen.

“She’s been a champion on housing and given us the tools we need,” Mayberry said.

In her first year as governor, Ayotte has cut red tape for builders and developers. The 14-month wait for a Department of Transportation driveway permit is down to about 60 days, and developers no longer need to make multiple trips to the Department of Environmental Services, Mayberry noted.

With progress in the legislature, Ayotte signed a package of bipartisan bills that modernized zoning laws, expanded accessory dwelling units, and reduced outdated parking and height restrictions that increase construction costs.

The progress already made in Concord is creating momentum in the market, Skelton said. That momentum will lead to more progress, less regulation, and more affordable housing, he added.

“We’re excited to build on the momentum of the last year and continue to advance new policies in 2026 that will ensure everyone can live, work, and raise a family in the Granite State,” Skelton said.

The Granite State continues to collect top rankings as one of America’s best places to live, and now Consumer Affairs has joined in, declaring New Hampshire the best state in the country to raise a family.

“New Hampshire boasts a low rate of violent crime (1.1 crimes per 1,000 people), a low rate of childhood poverty (7 percent), low food costs (an average of $371 per week), and a whole lot of state parks and libraries (6.6 and 15.6 per 100,000 people, respectively). All of this made it 2025’s top state to raise a family in,” the Journal of Consumer Research reports.

“New Hampshire checks all the right boxes for families,” said Rebecca Sowell, lead researcher at Consumer Affairs. “From safe neighborhoods and accessible health care to abundant outdoor spaces and strong public schools, the state offers a well-rounded environment where families can truly thrive.”

In the past year, New Hampshire has been named #1 in return on taxpayer investment, personal safety, and economic freedom. It’s also been named the state with the nation’s best healthcare quality. 

New Hampshire residents already know it is the best place to live, work, and raise a family, Gov. Kelly Ayotte said. She wants to make sure New Hampshire keeps on being great.

“It’s a testament to our independent, hardworking people and the work we’ve done to give families and businesses the freedom to thrive. We’re going to continue protecting our amazing quality of life, putting public safety first, and fighting for an even brighter future for everyone in our state,” Ayotte said.

NHGOP Chairman Jim MacEachern said Republican leaders, like Ayotte, who fight to keep New Hampshire, well, New Hampshire, are the reason for the success.

“This ranking proves what Granite Staters already know: strong Republican leadership works,” MacEachern said. “Gov. Ayotte and Republicans have made New Hampshire the safest, most affordable, and most family-friendly state in the country.”

And while costs in New Hampshire have risen, particularly in the wake of the nine percent inflation spike during the Biden administration, they haven’t gone up as quickly as in some other states.

For example, the average cost of rent in New Hampshire increased by 36 percent since 2019, to $1,833 per month for a two-bedroom apartment including utilities.

But in Arizona, Georgia, Maryland, New Mexico, and Tennessee, rent is up more than 60 percent over that same period.

In fact, in May, Consumer Affairs ranked New Hampshire as the ninth-best state for renters in the U.S.

New Hampshire taxpayers don’t have to pay a $537 million education spending bill just yet, as the New Hampshire Supreme Court stayed the decision in the ConVal lawsuit.

In a unanimous decision issued Wednesday, the Supreme Court put a hold on Rockingham Superior Court Judge David Ruoff’s November order that the state’s per-pupil spending must go up to at least $7,300. Ruoff had denied a motion to stay his decision pending appeal earlier this year.

Gov. Chris Sununu praised the stay decision, saying Ruoff’s ruling went too far.

“Today, the Supreme Court rightfully paused an attempt by one judge to usurp the power and preferences of both the legislative and executive branches,” Sununu said. “Grateful for the Supreme Court’s action to stay a decision that was so clearly overreaching.”

According to Senate President Jeb Bradley (R-Wolfeboro), implementing Ruoff’s order would wreck state finances, hurt lower-income communities, and eventually force an income or sales tax on Granite Staters.

“This decision could mean a $500 million spending increase for New Hampshire taxpayers and could cause reduced education funding for all the original towns that brought the Claremont education funding lawsuit by limiting the legislature’s ability to target special education aid to local school districts that need it the most,” Bradley said in a statement. “I remain optimistic that the Supreme Court will recognize that such huge financial decisions rest with representatives and senators that the people of New Hampshire have chosen.”

Lawmakers are looking for an affordable funding solution, and according to House Speaker Sherman Packard (R-Londonderry), the Supreme Court’s stay will give both houses time to keep working.

“We’re hopeful the Supreme Court has a different take on the matter than the lower court that will be less costly to taxpayers. The stay will allow the legislature more time to further analyze the situation,” Packard said.

The Peterborough-based Contoocook Valley Regional School District filed the lawsuit in 2019, arguing that the state’s education grant of $3,600 per pupil was far below the true cost and, therefore, unconstitutional. ConVal and the dozens of school districts that joined the lawsuit wanted closer to $10,000 per pupil.

Ruoff originally refused to set a dollar amount when he ruled the state violated the constitutional right to an adequate education, leaving that up to lawmakers. But a subsequent appeal to the state Supreme Court resulted in a 2021 order that forced Ruoff to come up with a figure.

Since the ConVal lawsuit was filed, lawmakers and Sununu have bumped up the grants to $4,100 per pupil, an amount Ruoff still found unconstitutionally low. Ruoff’s decision acknowledged it is up to the legislature to determine the funding but that it can be no less than the amount he set.

“What is the base cost to provide the opportunity for an adequate education 239 years after that fundamental right was ratified in our constitution? The short answer is that the legislature should have the final word, but the base adequacy cost can be no less than $7,356.01 per pupil per year, and the true cost is likely much higher than that. At a minimum, this is an increase of $537,550,970.95 in base adequacy aid to New Hampshire Schools,” Ruoff wrote.

The legal tussle over New Hampshire’s state spending for education “adequacy” is unrelated to another hot-button political issue: Taxpayers are already burdened with increasing education costs even as the number of students is declining.

The total cost of education in New Hampshire, including the portion paid through local property taxes, averages more than $20,000 per pupil. That’s up from about $11,000 total per pupil spending in 2000. Over the same time, the state’s student population has fallen by more than 20 percent. According to the Department of Education, student enrollment numbers in the Granite State have dropped from 207,684 in 2002 to 165,095 in 2023. That’s a decrease of 42,589 public school students, or about a 20.5 percent decline during the past 21 years.

Senate Republicans stand between the New Hampshire Advantage and dangerous judicial overreach in the ConVal decision that could force an income tax on Granite Staters, said Senate President Jeb Bradley (R-Wolfeboro).

Speaking before the Senate’s first session of the year at a Wednesday press conference in the Legislative Office Building, Bardley said the ConVal education funding decision essentially forces $536 million in new spending.

“There is no way, in my opinion, to do that without an income tax, or a sales tax or, possibly, both,” Bradley said. “That totally undermines the New Hampshire Advantage, and we just can’t go that route.”

Rockingham Superior Court Judge David Ruoff sided with the Contoocook Valley School District in its lawsuit against the state, ruling New Hampshire’s education funding system does not pay enough in adequacy grants and is, therefore, in violation of the state constitution. The Claremont state Supreme Court decisions from the 1990s found students have a right to an adequate education. That put the onus on lawmakers to define how much an adequate education costs and to come up with a fair way to fund it.

Ruoff’s decision, released in November, found the current adequacy grant of about $4,100 per pupil is too low and ought to be at least $7,300 per pupil. Ruoff left the final amount and funding mechanism up to the legislature. But Bradley said Ruoff’s decision puts New Hampshire on the road to an income tax. 

Worse, according to Bradley, it would force New Hampshire to revert to a donor town-type funding system where property taxes paid by homeowners in wealthier communities would be transferred to school systems in less-affluent cities or towns. That won’t happen while the GOP maintains control of the Senate, Bradley pledged.

“Between the 14 of us, an income tax, a sales tax, and donor towns are off the table,” Bradley said.

Some Democrats have already floated the idea of blocking the phase-out of the state’s tax on interest and dividends tax. Republicans say it’s just one step toward the longstanding goal of Granite State progressives to impose an income tax in the name of equity and social justice.

Gov. Chris Sununu is appealing Ruoff’s order to the New Hampshire Supreme Court. Bradley said it remains to be seen if the ConVal decision survives the appeal. 

Protecting New Hampshire’s strong economy and free way of life from a tax regime is one of the Senate GOP’s top priorities for the coming session, Bradley said.

“It’s vitally important that we protect hardworking men and women from higher taxes, allow small businesses to thrive, and maintain our economic status,” Bradley said.

Public safety is the second pillar of the Senate GOP’s agenda, he said, and that starts with bail reform. The House and Senate have competing proposals to fix the 2018 bail reform law. While it was supposed to end cash bail for non-violent offenders, it’s now blamed for returning violent criminals to the streets.

“Our bail system, with the best intentions several years ago, was reformed, and those reforms did not protect the public,” Bradley said.

Despite differences in the proposals, Bradley said he is optimistic a deal can be struck between the two chambers to fix the bail system one way or another. 

“I think the House has made a good faith effort,” Bradley said. “Nobody gets everything they want around here.”

The Senate is also looking to block sanctuary cities in New Hampshire, strengthen protections at the Northern Border, and pass mandatory minimum sentences for fentanyl traffickers, said Sen. Sharon Carson (R-Londonderry). 

The GOP agenda includes a parental transparency proposal that guarantees guardians access to school information about their children, a hotly-contested issue as some school districts insist teachers and administrators have the right to keep secrets – or even lie to – parents about their children’s behavior.

The senators will also push for local property tax relief, improvements to health care and mental health care, clean drinking water, investments in affordable housing, and a constitutional amendment to enshrine New Hampshire’s First in the Nation presidential primary into law. 

While the senators presented a united front for their agenda, there is a major fault line when it comes to marijuana legalization. Sununu reversed course last year by calling for the legislature to legalize recreational marijuana. Bradley admits the issue divides his caucus, but there will be a legalization effort this year he hopes everyone can agree to.

“There is the opportunity to get that done, but we’ll see what happens,” Bradley said.

With the tax filing deadline fast approaching, a new analysis finds New Hampshire residents have the lowest tax burden in New England and one of the lowest nationally.

Meanwhile, just across the line in Massachusetts, soaring taxes on top earners are sending them fleeing to low-tax states like Florida and, yes, New Hampshire.

The new WalletHub analysis uses a metric of income taxes, sales taxes, and property taxes to calculate overall tax burdens. New Hampshire has the third lowest overall tax burden, trailing just Alaska and Delaware. New Hampshire’s performance is even more impressive when compared to other states in the region. Three of the five states with the highest tax burden are in New England (Maine, Vermont, and Rhode Island).

New Hampshire is the only New England state not in the top 20 for tax burden.

State Senate Finance Committee Chairman James Gray (R-Rochester) said New Hampshire’s low taxes and efficient government are some of the reasons for the state’s economic success. “There’s an awful lot of people who choose New Hampshire because we are fiscally responsible with our money,” Gray said.

A different Wallethub analysis last week ranked New Hampshire number one for taxpayer return on investment.

The one glaring exception was property taxes. Granite State homeowners have the third highest property tax burden in the country, according to WalletHub, behind Maine and Vermont.

Gray said New Hampshire’s reliance on property tax to pay for services like education gives voters the most control over their money possible. He said that local control likely results in lower spending and taxes than if the decisions were all made in Concord.

“You have to have something to run a government by, and a lot of the things that we fund, especially schools, we pay for through a property tax,” Gray said. 

The effects of New Hampshire’s low taxes and efficient spending don’t end at the border. A new report from the Massachusetts Society of CPAs on the impact of the Bay State’s new “millionaire’s tax” — which raises the top state income tax rate to nine percent — says 82 percent of CPAs report they have high-income clients seriously considering relocating in the next 12 months. 

And tax-free New Hampshire is near the top of their list of potential destinations.

“Florida and New Hampshire are overwhelmingly the most popular choices for relocation,” the CPA report states. “While some may argue that a move to Florida is driven by a desire for better weather and a different lifestyle, the fact that the second most popular destination is New Hampshire suggests that people want to stay in the area but may be motivated instead by a lower cost of living, including a lower tax burden.

“Furthermore, New Hampshire is set to repeal its Interest and Dividends Tax by 2026, which would decide to relocate even more appealing.”

Granite State Democrats tried but failed to push through legislation reversing the repeal of the interest and dividends tax for people earning $50,000 or more per year.

New Hampshire already has the strongest economy in New England, with low unemployment and low poverty rates. The Live Free or Die state’s commitment to low taxes will help it stay in the pole position, according to Joseph Krupka, an accounting professor at Florida State University.

“Here is a simple answer, the lower state tax burden will drive the state economy. Corporations seek state tax incentives when developing long-term strategies for where to locate new facilities such as plants and offices,” Krupka said. “Reduced corporation and real estate tax burdens along with a favorable personal income tax for their employees are the two keys.”

Gray knows there are a lot of factors considered by business owners who want to relocate, from infrastructure and energy costs to the local labor supply. Some states even offer financial incentives that New Hampshire does not currently match. But, he said, New Hampshire will keep to its low-tax structure.

“That’s just the way we do it,” Gray said. 

The world is coming to the Granite State as businesses from across the globe are setting up shop in order to get their cut of the ‘New Hampshire Advantage.’

The new report on New Hampshire Foreign Direct Investment prepared by the New Hampshire Department of Business and Economic Affairs, Plymouth State University, and the World Affairs Council of New Hampshire shows New Hampshire gaining a leading edge in attracting businesses from nearly every continent.

New Hampshire is outperforming the national average when it comes to employment from foreign companies and investment.

“New Hampshire’s low taxes, skilled workforce, and proximity to domestic and foreign markets are advantages few states can offer to companies poised for international growth,” BEA Commissioner Taylor Caswell said. “These data and findings will be useful in our efforts to attract businesses to New Hampshire and create high-paying jobs for years to come.”

According to the report, written by PSU professors Roxana Wright and Chen Wu, New Hampshire outperformed the national average when it comes to investment from global firms. Foreign subsidiaries employed 50,700 people in the state in 2020, which is 8 percent of the state’s overall private-sector employment, higher than the national average of 6 percent. Right said this level of global investment runs throughout all industries and locations in the Granite State, strengthening the New Hampshire economy.

Plymouth State University professors Roxana Wright, left, and Chen Wu present their findings in the 2021-2022 NH Foreign Direct Investment Report at the New Hampshire Foreign Direct Investment Forum on Thursday

“Foreign direct investment and international connections touch many of the industry segments and all key supply chain activities in New Hampshire,” Wright said. “And international businesses contribute to financing availability for private and corporate residents, to the growth of local markets and industries, and to the resilience of production capacity.”

The PSU report found that in 2022 nearly 180 foreign companies headquartered in 23 foreign countries had more than 360 subsidiaries from some 50 industries operating across the ten counties in New Hampshire.

Most of the foreign-owned subsidiaries are in the finance and insurance industry, making up 28 percent of foreign firms. About 75 percent of these finance companies operate in Hillsborough and Rockingham counties, but the rest of the state is benefiting from foreign investments, the report found.

Wright and Wu’s report found there is plenty of potential for growth in foreign manufacturing investment in the North Country as well.

After finance and insurance companies, foreign investment is spread evenly across a wide spectrum of industries, including retail, research, manufacturing, real estate, and transportation. The foreign investment throughout New Hampshire’s economy shows the opportunity companies around the world see in the Granite State, and it makes local industries stronger, Wu and Wright say.

“The diverse presence of foreign firms within industries once again demonstrates the high level of integration that foreign businesses have with a wide range of lucrative activities in the state,” Wu and Wright’s report states. “For successful operations, it can be expected that these firms collaborate and partner with local, domestic, and non-domestic companies and institutions and are an intricate part of New Hampshire business.”

Canada leads the way when it comes to foreign companies investing in New Hampshire, with 118 subsidiaries in 2022. They’re followed by the United Kingdom’s 53, Switzerland’s 30, Japan’s 25, and Germany’s 23.

These foreign firms are spread unevenly throughout the state, with most in the southern parts of New Hampshire, dominated by Hillsborough and Rockingham counties who host companies from around the globe. The Norty Country’s Coos County is home to just two foreign subsidiaries, both from Canada. 

The full report is available on PSU’s webpage.