SOLD: InvestNH Program Leads to Increased Housing Permits

Concord, NH – A new report released by the NH Department of Business and Economic Affairs (BEA) finds that following the launch of the $100 Million InvestNH state housing program, the total number of permits issued for residential construction has increased by 18% – with the highest number of actual permits issued in 2022 since 2011. Of those new permits, 41% are for multifamily housing projects.

Prior to the launch of InvestNH, the average annual increase over a 10-year period was just 9.5%, making this year's rate double the average.

This data illustrates the impact InvestNH is having and indicates that the state is now on track to bring 25,000 new units online by 2024. Thus far, InvestNH projects have been completed in Concord, Conway, Manchester, Lebanon, and Littleton, bringing 129 new units to market – 88% of which are affordable housing.

“After launching InvestNH – the most transformative and historic housing fund this state has ever seen – Granite Staters are benefitting from increased housing supply,” said Governor Chris Sununu. “By focusing our efforts on delivering affordable housing to communities across New Hampshire, this program has a real impact for Granite State families and allows employers additional opportunity to attract new workers from beyond the 603."

The report notes, “A new trend to note for the state is the effect of the InvestNH program. In 2022, the year the program was initiated, the state saw an increase in residential housing permits of 18%...of that amount, over half of those permits were for multi-family housing, which are the focus of the InvestNH program. We expect to see evidence, when the numbers for 2023 are compiled, marking the first full year of InvestNH activity, of the effect of the program on the number of permitted multi-family housing units statewide.”

BEA Commissioner Taylor Caswell said, “Workforce relies on affordable housing and the InvestNH program is making a difference in providing places for families to live and work, which in turn fuels our state economy to meet the employment needs of businesses throughout New Hampshire.”

Thirteen communities accounted for 50% of the units permitted in 2022:

• Salem (470)
• Portsmouth (404)
• Londonderry (321)
• Rochester (287)
• Manchester (263)
• Lebanon (262)
• Merrimack (203)
• Laconia (135)
• Conway (131)
• Concord (110)
• Dover (102)
• Nashua (101)
• Swanzey (100)

The InvestNH program is comprised of two components – a capital grant program for multi-family rental development, and municipal grants to promote the construction of affordable housing in towns and cities. The program attracted more than 100 developers who applied for the funding for projects in several communities.  BEA is administering the program statewide.

NOTE: A copy of the BEA report can be found here.

NOTE: Additional information on the InvestNH program can be found here.