New Hampshires housing market has transformed dramatically in recent years, especially for the states highest earners.
These affluent buyers are purchasing properties from spacious country estates to chic city condominiums.
Many are upsizing to luxury homes, while others are downsizing or buying second homes in scenic spots.
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They tend to have flexibility in financing, often paying cash or using jumbo mortgages.
What used to be a rarity a home priced over $1 million is now much more common.
These luxury properties include historic estates, modern mansions, and custom-built homes with high-end finishes.
These pricier condominiums cater to buyers who want comfort and convenience rather than large land parcels.
About 10.4% of all housing units in New Hampshire are seasonal homes.
Many of those were spectacular lakefront estates on Lake Winnipesaukee or oceanfront mansions on the Seacoast.
This could include multi-family apartment buildings, duplexes, or portfolios of rental homes.
Upsizing, Downsizing, or Second Homes?
Between 2018 and 2023, New Hampshire saw a surge in move-up buyers purchasing high-end homes.
High earners frequently bought properties with 4+ bedrooms, bonus rooms for home offices, and expansive lots.
This upsizing trend was facilitated by low interest rates through 2021.
Downsizing with a Twist
Older wealthy residents often consider downsizing.
After children move out, a 5,000 sq.
ft. house might feel too large.
Instead, many chose to right-size into slightly smaller single-family homes or upscale condos while staying in New Hampshire.
Realtors observed something new: retirees or near-retirees in their 60s competing with first-time buyers for moderate-sized homes.
So they end up buying the limited supply of mid-sized houses, sometimes outbidding younger folks by paying cash.
Downsizing for the rich doesnt necessarily mean cheap or minimal it means maintaining a luxury lifestyle with less maintenance.
New Hampshire became a magnet for second-home buyers during the COVID-19 pandemic.
Starting in 2020, more people were able to work remotely and wanted a refuge away from cities.
U.S. vacation home sales jumped 57% year-over-year in early 2021.
Local realtors described an awakening to New Hampshire as a luxury second-home destination.
Plus, its within easy driving distance of major metropolitan areas.
As a result, wealthy out-of-state buyers flooded popular vacation regions.
Where Are High-Income Buyers Purchasing?
Many of the states most expensive home sales have been on Winnipesaukee.
Many of those newcomers have high incomes and they often settle in the southern commuter belt.
Merrimack Countys million-dollar home sales more than tripled from 16 in 2019 to 56 in 2024.
In vacation/resort areas, cash offers were especially prevalent.
By late 2022 and 2023, as interest rates rose sharply, cash became king in the luxury market.
This gave wealthy buyers a huge advantage because sellers prefer the certainty of cash deals.
From 20182021, jumbo loans were relatively affordable because interest rates were historically low.
Wealthy buyers took advantage of favorable rates often in the 3%4% range to borrow large sums.
However, things shifted in 2022 and 2023 when interest rates climbed rapidly.
As borrowing became more expensive, the relative advantage of paying cash increased.
Those who did use jumbo loans often made large down payments to reduce the loan size.
Who Are These $500K+ Earners?
Age and Life Stage
Many high-income homebuyers are in their 40s, 50s, or early 60s.
This tends to be the peak earning period for professionals.
The typical repeat homebuyer nationally in recent years has been around 5661 years old.
But they are fewer anecdotally, New Hampshires luxury market leans older than places like Silicon Valley.
The trend of 60-somethings buying single-family homes shows that even those at retirement age are active in the market.
Dual-income couples can much more easily hit the $500k income mark.
According to national stats, 70% or more of high-end homebuyers are married.
Meanwhile, childless couples (whether younger or empty nesters) are common among condo purchasers and second-home owners.
A younger family might afford a pricey home thanks to help from wealthy parents.
Or a property might be bought under a family trust.
In a sense, its not just current income but also accumulated wealth that defines these buyers.
For several years, New Hampshires upper-end real estate market was soft.
By around 20132014, the market started recovering.
But compared to the explosion of the late 2010s/early 2020s, that earlier recovery was modest and gradual.
Contrast that with $470,000 by 2023 an enormous jump.
The luxury segment remained a small niche through most of the 2010s.
Million-dollar sales were infrequent and seen as exceptional.
Inventory and Affordability Changes
During 20082017, inventory was relatively abundant in many areas.
High earners looking then had more choices and could take time.
In contrast, 20182023 was a time of inventory shortage.
Think of what a luxury home meant in 2010 versus 2023.
Back in 2007, only 7% of NH homes were valued over $500,000.
By 2023, a $500,000 price was roughly the median for a single-family home.
That means around 50% of homes were selling above that!
What was once luxury pricing became normal pricing.
In 20082017, the majority of home purchases, especially primary residences, were by New Hampshire residents.
By 20202023, outsiders were a dominant force even in general market sales.
Remote work and pandemic-driven relocation were big differences that the previous decade didnt have.
The massive inflow of wealthier migrants after 2020 is a feature that sets the 20182023 era apart.
Some vacation homes even went into foreclosure after 2008.
Now compare that to 20202023, where we saw a second-home feeding frenzy.
Vacation home counties had double the sales growth of other areas during the pandemic boom.
For New Hampshire, that meant places that were once affordable getaways became pricey and scarce.
Most notably, theyve increasingly paid cash, giving them a decisive edge in competitive bidding situations.
By 2023, what was once considered luxury housing had become mainstream pricing in many New Hampshire communities.
