Affordable 3+ units in NH

[Andrew Bosco]

    Hey all, 

Often times I get asked about affordable 3+ units in NH - so I figured I would share some of my preferred locations. We are going to go over Claremont, Somersworth and Littleton. Tenant class is between C-B in these locations. Data is 2022 to 2023. 

Summary: 

1. Somersworth = desirable (powerful local market)

2. Claremont/Littleton are cheaper and affordable 3+ units

3. Littleton has a large number of 3+ units. 

The positive variance shows desirability and overbidding (+ % means % overbid of listing price). Somersworth continues to be a strong market of desirability. Mainly due to location near route 95 and near Rockingham County. The days on market are rather low, which shows increased desirability as well. 

Inventory is crushingly low and that also fuels the variance. Somersworth has only sold 4 3+ properties this year. That said, the cost for a Somersworth property is around 120-150K per unit. Whereas Claremont is under 75K, but showing properties still being purchased. Data is so low that some metrics are not calculated. 

Somersworth is around 150 dollars per square foot. For relation - Dover (next town) is 180 dollars per square foot and Portsmouth (near Dover) is above 400 dollars a square foot. Showing a strong local market. The difference with Littleton and Claremont are the locations, which are far from the Seacoast. These areas though show an affordable region to buy 3+ units and still retain a low vacancy rate. 

In terms of sales, Somersworth and Littleton are selling a good amount of volume compared to Littleton. That said, Littleton has a surprising number of 3 units compared to the other locations (as well as 4 units). Commercially, Somersworth sells a hefty amount of 5+ units and a good portion of 3-4 units as well compared to other local markets. 

I hope this helps! Good luck out there in this tough market.