Housing prices in Grafton County continued to rise in early 2026, even as the rate of price growth slowed compared to previous years, a March report by the New Hampshire Association of Realtors found. The median price for a single-family home in New Hampshire reached $530,000 in March, a one percent increase since the start of the year and the smallest annual increase since 2023. At the same time, first-quarter data from this year indicates that prices are still trending upward overall, having increased 3.9% since March 2025.
In Grafton County, the upward trend has been even more pronounced. The median sales price rose to $490,000 in March 2026, a 15.6% increase from March 2025, while year-to-date figures show a 6.7% increase. Together, New Hampshire Realtors’ data suggests that while month-to-month growth may be moderating, the broader trajectory remains upward.
In response to these trends, the Hanover Town Council passed three zoning amendments last year to encourage denser housing in the town. Three additional amendments are on the ballot this year, two of which would further ease zoning restrictions and one of which would strengthen zoning restrictions.
In an interview with The Dartmouth, economics professor William Fischel said Hanover’s housing trends reflect long-standing structural constraints on the housing supply rather than short-term market shifts. He explained that local zoning laws across New England have historically limited the amount of land available for development. Pressure from Concord, however, has “prodded localities to relax some of these laws to promote housing construction,” Fischel said.
“The backlog is large, and it is difficult to build out of conditions that have been decades in the making,” he explained
At the state level, data points to a persistent imbalance between supply and demand. Although inventory has increased modestly, with about 1,465 single-family homes on the market in March, a 13.2% increase from the previous year, overall supply remains historically low, according to the New Hampshire Realtors report.
New Hampshire Realtors vice president Dave Cummings told The Dartmouth that short-term fluctuations, especially at the county level, should be interpreted with caution. Grafton County data “tends to be a little more volatile and wouldn’t necessarily point to a trend,” he explained.
Cummings said inventory levels remain far below that of a balanced market, which occurs when the supply of homes for sale roughly equals the demand from buyers. The housing market is measured in months of supply, the time it would take to deplete current inventory at the current pace of sales. A five to seven-month supply of homes is typically considered balanced, according to Cummings.
“2.6 months’ supply in Grafton County is still incredibly low,” Cummings said. “The last time we even had a five-month supply was way back in 2016.”
Because supply remains constrained, even recent gains have had limited impact on affordability, according to Cummings.
New Hampshire’s housing affordability index for single-family homes stood at 59% in March, meaning the median household income is only 59% of what is needed to afford a median-priced home, according to the New Hampshire Realtors report.
While the COVID-19 pandemic accelerated price growth, Cummings suggested the underlying shortage predates it, driven by years of construction, zoning and permitting challenges.
“Housing was affordable in this area back in 2012,” Cummings said, adding that price growth during COVID was “driven by inventory, which was heading in that direction anyway.”
In Grafton County, these pressures are particularly visible in the Upper Valley, where demand is shaped in part by the College and local employers.
Dartmouth student government town affairs liaison Daniel Cai ’26 said housing costs that new graduates “cannot reasonably be expected to afford” have directly affected students’ ability to remain in the Upper Valley after graduation.
“Although not many students choose to stay after graduation, a meaningful number still do — whether for programs like the Bachelor of Engineering, medical school or other graduate degrees,” Cai said. “However, housing remains a major obstacle. It is extremely expensive … and nearly impossible to find something truly affordable.”
According to Cai, students, local residents and policymakers disagree on housing “more often than you might expect.”
“Many residents are concerned that increasing housing supply … could increase competition and potentially lower rents or property values,” Cai said. “Increasing housing supply would introduce more competition in the market, which generally benefits renters.”
Cai pointed to Article 7, the proposed zoning amendment which would further restrict development in Hanover. Passing it would “ban certain types of housing development across roughly 80% of residential lots in the walkable areas of town,” he said.
“I remain hopeful that students will continue to engage in these discussions and advocate for themselves, alongside the student government, to address the ongoing housing and affordability challenges in Hanover,” Cai said.
