In the 1980s, an empty property stood undeveloped in Hampton Falls. Owned by the state of New Hampshire, its 57 acres added nothing to the local tax base.
Then, the state sold it to the New Hampshire Housing Finance Authority.
Decades later, in 2017, the land was transformed into a new life. Along with dozens of affordable senior housing units, the property has now accumulated nearly $9 million in taxable value, according to local property records.
Some state lawmakers want to replicate that process.
Selling idle state-owned land for housing developments, they argue, creates a world where everyone wins: The state gets revenue from selling property it doesn’t need, towns get a boost to their tax rolls and New Hampshire residents get more — and potentially cheaper — housing options.
“I am not under the illusion that this bill will magically identify acres and acres of land in highly desirable locations upon which to build all the new housing units we need,” said Rep. Chris Muns, a Hampton Democrat who authored legislation directing state agencies to take inventory of surplus property. “As the old adage goes, every little bit helps, and even if we are able to only identify one or two promising sites a year, that could mean an affordable home for several families.”
A swath of Democrats have cosponsored Muns’s proposal, House Bill 1726, which would have agencies take stock of any properties “suitable for development or redevelopment as affordable housing” every two years as part of the state budget process. Then, those departments could sell them to developers at below-market rates with the requirement that 20% of the units would be considered affordable housing.
Troy Republican Rep. Dick Thackston questioned what standards would determine pricing and who wins in a competitive bid. Without guiding principles, putting this land on the market, he said, could create a situation where government gets to pick “winners and losers.”
Moving the needle
Lawmakers have tried several measures to alleviate the state’s housing crunch. Home prices consistently hit new records in New Hampshire — the median price of a home sold in 2025 was $535,000 — and the vacancy rate has mostly declined over the past 15 years, to a razor-thin margin in many towns.
The idea to sell the state’s surplus properties for housing is not a new one, and the extent of its impact is likely limited. The proposal has gained traction in recent years as legislators looked for different ways to get more housing built without drawing from state coffers. Gov. Kelly Ayotte campaigned on it.
After she signed laws last year intended to speed up construction by lifting some regulatory requirements and converting other types of property into housing, Ayotte said she wants to keep moving the needle.
“We need to think creatively to keep the momentum going, and that includes taking stock of property the state owns to find opportunities to turn unused land or buildings into new housing,” Ayotte said in an emailed statement. “I’m happy to work with the Legislature, our state agencies, and the private sector to make that happen.”
Her Commission on Government Efficiency, or COGE, also earmarked it as one of several dozen ideas to optimize the state government’s potential. The Department of Transportation, for example, has hundreds of unused properties. Some are slivers along exit ramps, others could be large enough to develop.
“Many of these parcels were acquired for projects that have since been completed, revised, or abandoned,” the group wrote in its report, published in December. “As a result, the state now holds numerous properties that no longer serve an operational purpose yet continue to require oversight, maintenance, and administrative tracking.”
Enticing developers
The NH Housing Finance Authority, a quasigovernmental organization that provides financing and other housing supports statewide, helps identify state land that could be suitable for a housing development.
Rob Dapice, NH Housing’s executive director and CEO, said that even if the state goes through with these land transfers, a combination of local zoning and infrastructure challenges can still stifle a project.
Still, he said, updates to state law could help entice developers and speed up the process. For example, current state law lets the government regain control of a property if it’s no longer used for affordable housing.
“The ownership reverter clause that’s in the law right now is a real impediment to getting lands developed because it’s hard for a developer to take out a loan or get investors when there’s that state law saying, ‘This could theoretically, the land could be clawed back by the state,'” Dapice said.
Matt Mayberry, the CEO of the New Hampshire Home Builders Association, testified on a related bill earlier this month that would give the state government some leverage when selling to developers. If the discounted price was attractive — which Mayberry said is the biggest cost hurdle for development — then the state could have a say in what gets built.
“It’s time to stop moving inches and start moving to miles,” Mayberry said.