Why Invest in New Hampshire Real Estate?
With its breathtaking mountains and forests, four distinct seasons and low cost of living, New Hampshire is an enviable state to live in. It’s the 8th richest state in the country, and consistently ranks amongst the top ten healthiest and happiest states in the US. Jobs are plentiful in New Brunswick, boasting the fourth lowest unemployment rate in the country. And as the proverbial cherry on top, the Granite State is the third safest state in the country.
New Hampshire’s economy is powered by varying industries including health care, hospitality, IT, advanced manufacturing, and construction, which has spurred job growth and reduced the state’s unemployment rate to below the national average. These industries are attracting both local and international talent, and fueling real estate demand for both residential and rental properties.
Investment Considerations for New Hampshire Real Estate
There are a number of factors to consider, including:
- Favorable Tax Policies – New Hampshire has no state sales tax, no income tax, and no capital gains tax. What’s more, businesses have no inventory or machinery taxes. There are also no estate or inheritance taxes, and both public and private pension incomes are tax-free. In contrast, property taxes are well above the national average, and currently ranks as the third highest in the country.
- Increasing median home values – New Hampshire’s median home value is well above the national average, and appreciated by 7.1% over the last 12 months year. The state’s cost of living is higher than the national average. New Hampshire is home to the highest median income in the country, however.
- Long, cold winters – While New Hampshire residents experience mild summers and breathtaking autumns, the state is also known for long, snowy and cold winters. Retirees won’t be flocking to New Hampshire any time soon, but tourists who love winter sports will.
- An aging population – One out of three new people in the state are baby boomers, and more than half of the population is 40 years or older. New Hampshire’s government is cognizant of this fact, however, which is why public policies are in place to try and attract young, millennial workers. As more and more people under the age of 40 relocate there, there will be a surge in demand for affordable housing.
What are the Best Markets to Invest in New Hampshire
Portsmouth is a great choice for millennials. While home values are almost twice the national average, and rent is significantly higher than the national average, the city is experiencing population growth due to low unemployment rates, median household incomes, a large variety of outdoor activities and good public school system. Londonberry is another good choice since there are low crime rates and a booming local economy. Hanover, Gilford, Campton and Atkinson are great locations for retirees who are brave enough to weather the cold winters and want to lead an active lifestyle. And at Hampton Beach, median home values are high, but median rents are only around $50 higher than the national average.
INVESTimate® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in New Hampshire; and across the United States and calculate home values RENTestimate for every property in New Hampshire. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.