Soaring prices for housing and health care have turned family budgets from surplus to deficit

Concord, N.H. – A new analysis from the New Hampshire Fiscal Policy Institute found that the typical New Hampshire family has lost major ground over the past decade, as the cost of basic necessities has risen substantially faster than household incomes. According to the study, the typical four-person New Hampshire family’s disposable income – the amount left after paying for only a few of the essentials (food, housing, child care, health care, gasoline) – has dropped by $17,349 since 2015.

The report draws on two decades of publicly available federal and state data to model household budgets for median-income families in 2005, 2015, and 2024. NHFPI used consistent inflation adjustments to compare how the cost of housing, child care, health care, food, transportation, and energy have changed relative to income over time. By holding household characteristics constant and adjusting for regional costs, the analysis isolates long-term shifts in affordability rather than short-term price changes.

In 2024, a median income household with a family of four fell nearly $1,900 short annually when covering only core household expenses, including housing, child care, food, gasoline, and health care, with nothing left for student loan payments, clothing, vehicle payments, or other everyday family costs. Because this analysis reflects the median household, half of New Hampshire families have even less income available to meet these essential expenses. Ten years ago, a New Hampshire family with the median household income would have had an inflation-adjusted surplus of about $15,400 after those same basic needs – money that could be saved, invested, used for other typical expenses, or used for emergencies.

“Ten years ago, a typical family could cover the basics, pay for other essentials, and still have a modest cushion for emergencies and savings,” said Nicole Heller, Senior Policy Analyst at NHFPI. “Today, that same family is falling short. Not because they’re earning less, but because the cost of living has grown so much faster than incomes.”

Key findings from the study include:

• Family budgets flipped from surplus to deficit over the past decade. Over the past decade, the income left over for a typical New Hampshire family after paying for only a few basic expenses – housing, child care, food, gasoline, and health care – has dropped by $17,349.
• Prices of luxuries have remained stable, while prices of essentials have risen sharply. While prices for many luxuries like certain types of clothing, recreation, and technology have remained relatively stable or even declined since 2005, the cost of essentials such as food, housing, and health care has risen sharply. For example, the price of a television or toys, listed as recreational commodities in the Consumer Price Index, decreased by 96 and 64 percent, respectively, between 2005 and 2024. At the same time, necessities like medical care, food, and housing costs increased.
• Housing costs have soared. The monthly mortgage payment for a median-priced home has more than doubled since 2015, rising 164 percent, while home prices overall have surged 275 percent since 1999. A typical family buying a median-priced home in 2024 would need an income of $157,500 to avoid being cost-burdened, about $57,700 more than the state’s median household income.
• Health care is consuming more income. Average family health insurance premiums (employer and employee share) rose 121 percent since 2005, reaching $26,119 in 2024 – roughly the price of an entry-level new car each year. Deductibles are up 323 percent over the same period.
• Child care remains one of the largest expenses. Care for two children under age five costs about $30,000 per year or roughly 30 percent of median household income. Over a typical childhood, a family could spend nearly $300,000 on care for two children.
• College costs and student debt add further strain. Tuition at New Hampshire’s public colleges has risen about 60 percent since 2005 and remains among the highest in the nation. At the same time, Granite State graduates have the highest average student-loan balances in the U.S., making it even harder for young families to build savings or afford housing while also paying off student loans.
• Energy and food costs continue to climb. Home energy costs have nearly doubled since 2005, while food prices in the Northeast are up 72 percent, outpacing overall inflation. A healthy food plan for a family of four now costs about $11,900 annually.
• Rural families face added pressures. Households in Coös and Sullivan Counties have seen the slowest income growth since 2009, making them especially vulnerable to rising costs.

“The squeeze families are feeling isn’t a matter of personal budgeting – it’s a structural affordability crisis,” said Gene Martin, NHFPI Executive Director. “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.”

The release of this study coincides with NHFPI’s conference on October 24th, Working Hard and Falling Behind: The High Cost of Living in New Hampshire, where non-profit leaders, business leaders, researchers, and policymakers will dive into the data behind New Hampshire’s affordability crisis and explore practical solutions. Members of the media wishing to attend can contact info@nhfpi.org.

You can read the full study, Affordability Eroded: Changes to the Cost of Living in New Hampshire, at https://nhfpi.org/resource/affordability-eroded-changes-to-the-cost-of-living-in-new-hampshire/.

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