For New Hampshire families who feel like it’s gotten more and more difficult to make ends meet, there’s new evidence that shows they’re right.
In 2015, a median-income family in New Hampshire typically had about $15,400 left at the end of the year after covering basic needs. That’s money they could invest, put aside in college or emergency funds, or use to go on vacation.
In 2024, that same family would have fallen short about $1,900, forced to go into debt or tap into savings to cover basic costs — even if they don’t have student debt or a car payment, and aren’t putting money aside for retirement.
Those are some of the findings of a new report from the N.H. Fiscal Policy Institute on rising costs of living in the Granite State.
The research project stemmed from stories staff kept hearing from New Hampshire families, said lead author Nicole Heller, a senior policy analyst with the institute.
Although the results aligned with what she had been hearing from people, Heller said it was still “astounding to see that big of a difference” in the median financial situation from a decade ago.
The report found increasing costs of medical care, food and housing all contributed to that change. While the prices of most luxury items have stayed steady or decreased for the past two decades, the essentials of daily life have gotten more expensive.
Home energy prices in New Hampshire have nearly doubled since 2005, and food prices in the Northeast have risen 72 percent, faster than inflation. It now costs nearly $12,000 a year to feed a family of four, the report found.
The monthly mortgage payment for a median-priced New Hampshire home has more than doubled since 2015. A typical family buying a median-priced home in 2024 needed to be making at least $157,500 — more than $57,500 above the state median household income of about $95,700 — to not be burdened by the cost, the report says.
Add on property taxes, high interest rates, home insurance and other costs and “that’s a big drive in the difference,” Heller said.
Meanwhile, health insurance premiums in New Hampshire have gone up 121 percent since 2005, and deductibles have risen more than 320 percent, the report found.
“The squeeze families are feeling isn’t a matter of personal budgeting — it’s a structural affordability crisis,” said Gene Martin, NHFPI’s executive director, in a news release. “When families can’t afford to live and work in New Hampshire, it threatens the long-term strength of our communities and our overall economy.”
When people are living paycheck to paycheck, there can be consequences for individuals and the economy, Heller said. People may miss payments on debt or not be able to plan for their kids’ education or their own retirement, and have a harder time saving for housing and building equity.
Federal Reserve data show it’s becoming more common for Americans to be delinquent on auto loans. That’s significant because auto loans are typically one of the expenses that people prioritize over others, because vehicles are relatively easy for lenders to repossess.
That means more Americans are likely finding themselves in situations where they can’t afford even their top-priority expenses.
Because of that, they’re less likely to spend money on things like going out to restaurants, which can strain local businesses, Heller said.
The new report’s release comes ahead of the institute’s Oct. 24 conference on the affordability crisis. NHFPI describes the conference as an opportunity for nonprofit leaders, businesspeople, researchers and policymakers to explore solutions.
One thing research has shown, Heller said, is that policies that bolster income for families of low and moderate incomes are good not only for those groups, but for the economy as a whole.
These articles are being shared by partners in The Granite State News Collaborative. For more information visit collaborativenh.org.
