Manchester’s housing market is booming, earning the title of the hottest in the country and ranking among the best places to live. While this is great news for attracting families and businesses, it also drives up housing prices, making affordability a growing concern. With a vacancy rate of just 0.6%—far below the healthy benchmark of 6%—the city faces a critical housing shortage. However, local efforts are underway to address these challenges and expand housing opportunities.
In 2024, Manchester issued 535 Certificates of Occupancy and bringing 600 new homes online, with another 707 currently under construction. The city also leveraged tools like the Affordable Housing Trust Fund and state incentives to support projects such as affordable units on Elm Street and housing for previously unhoused women. Manchester’s designation as a “Housing Champion” by the state further unlocks grant funding for innovative housing and infrastructure solutions.
Additionally, the city is undergoing its first zoning rewrite in over 20 years, and only the fourth one in the city’s history. It’s an exciting opportunity to modernize regulations and encourage more housing development. With tremendous public input, Manchester is committed to making our ordinances more user-and business friendly and ensuring they reflect what our city needs both now and into the future.
Recognizing the importance of accessible outdoor experiences for all its residents, the Manchester Transit Authority and the Nature Conservancy have collaboratively introduced the Transit to Trails program. This initiative bridges the gap between urban living and nature by providing free transportation to various outdoor destinations. It's a thoughtful collaboration involving environmental groups, public transportation, and social service organizations.
Transit to Trails is specially designed to make New Hampshire's rich natural landscapes accessible to Manchester's most marginalized communities. This program operates on the first Saturday of each month from June through October, offering a gateway to the great outdoors at no cost to participants. The service starts at Veterans Memorial Park in downtown Manchester, where residents can easily board a bus and travel to walking trails, state parks, and water destinations within a 30-mile radius of the city center.
This year, the program includes an exciting partnership with Fresh Start Farms during the Manchester City Parks Day. Fresh Start Farms will offer local and affordable produce, with a 50% discount for those using SNAP/EBT, alongside eggs and other pantry staples. Transit to Trails not only fosters a connection with nature but also promotes community well-being, making it easier for everyone in Manchester to enjoy the state’s scenic beauty and contribute to environmental stewardship.
Manchester’s budget process ensures transparency and operates under a tax cap set by the city charter. The Mayor prepares a proposed budget for the Board of Aldermen, which must include specific historical and projected expense and revenue information, along with statements regarding anticipated tax levies and debt service requirements. Public hearings allow for community input before adoption. The Mayor can veto parts of the budget, but if no final budget is passed by June 30, the original proposal takes effect. Supplemental appropriations and transfers are possible under certain conditions. Once approved, the Finance Department publishes a detailed Budget Book for public access.
In response to the pressing need for housing in Manchester, the city is adopting innovative approaches regarding its surface parking lots. In 2021 the city submitted two requests for proposals (RFPs) to convert the Pearl Street and Hartnett Street parking lots into mixed-use, mixed-income housing developments.
At present, these lots are utilized as permit and public parking for the downtown area. Like many communities across the United States, Manchester is experiencing a significant housing shortage. Consequently, housing costs are escalating throughout the market, leaving an increasing portion of the population unable to afford to rent or purchase a home. Manchester has been designated the hottest real estate market in the country for the second consecutive year, thereby underscoring the urgent requirement for not only more affordable housing but also for a greater overall housing supply.
Both RFPs require a portion of the proposed units to remain affordable, as defined by HUD, making affordability a key evaluation criterion. Additionally, the submitted proposals must not lead to a decrease in public parking spaces and must be designed to integrate seamlessly with the architectural character of the community, as well as enhance pedestrian traffic.
These initiatives are in alignment with various recommendations outlined in the city's Affordable Housing Taskforce Report, highlighting the city’s commitment to addressing the urgent housing needs of its residents through progressive and comprehensive strategies.
Most importantly, the city is revising its zoning ordinance to consider parking maximums instead of the traditional minimums. This shift aims to promote more efficient land use and encourage housing development without the constraint of excessive parking requirements.
