It’s not news that New Hampshire is experiencing a housing crisis. There aren’t enough housing units and those available tend to be unaffordable.
We need more housing, and we need to build it inexpensively. Cost inputs primarily consist of labor, materials and land. It’s unlikely labor and material costs will decrease any time soon. It’s with land costs where there’s opportunity. The opportunity involves greater density, building more units of housing on smaller land plots.
Here’s an example: Town A requires a single-family home to sit on two or more acres. If a two-acre parcel costs $100,000, a three-bedroom home costs $200,000 to build and the developer makes a 15% profit, that home will cost $345,000.
Town B requires only one acre to build a single-family home. If the 2-acre lot still costs $100,000, a developer can now build two homes on the same lot and the land cost per unit is reduced to only $50,000. The building costs of $200,000 and the 15% profit per home remain the same. But the developer is able to build two homes on two acres that would cost just $287,500 each.
I’m not suggesting we turn New Hampshire into a major metropolis. The rural nature of our state is a reason why many of us live here. But the concept of density, if applied thoughtfully, can increase housing stock and decrease costs. For those communities intent on addressing the housing crisis, their planning and zoning boards should be exploring changes to increase density.
CHRISTOPHER KNIGHT
Concord